OpenSea Value Plunges 90% 📉

GM. This is Degen Scoop. It’s Wednesday, here’s the stories for the day:

• OpenSea Value Plunges 90% 📉

• NFT Volumes Reach 3 Month High 🏋️

• Circle Considering IPO 📢

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

OpenSea Valuation Down ~90% According To Coatue Management

Coatue Management, a tech-focused investment manager, has significantly marked down its stake in OpenSea by almost 90%, according to documents obtained by The Information.

The reduction from a previously valued $120 million stake to $13 million in the second quarter of 2023 suggests a valuation for OpenSea of $1.4 billion or less. Between Blur stealing market share and bear volumes significantly below that of bull market numbers, it’s only surprising the number isn’t greater than 90%.

This stark devaluation has prompted shareholders to divest their OpenSea shares and get some of the value that was previously there. The move aligns with OpenSea's recent restructuring, which includes a 50% reduction in staff, emphasizing a renewed focus on technology, speed, quality, and user experience.

NFT Volumes Pick Back Up, Posting 3-Month Highs

NFT trading volumes have surged to a three-month high, reaching $19.1 million in daily trades. While the numbers are still significantly below bull highs, we’ve seen sustained trading volumes as users begin to speculate again.

The CryptoPunks zombie sale led the top sales, contributing to the most active day in months as mentioned in the tweet above. The spike had a rather perfect timing with "The Simpsons" parodying the NFT industry just as it’s beginning to regain steam.

As noted above, even Blur’s token is ripping as volumes come back and speculators try to front-run narratives. For perspective, in April 2022 weekly volumes reached $1.4B, with last week's total at $98M. What does this mean? This is only the beginning….

Circle, The Company Behind USDC, Considering An IPO

Circle, the issuer of the USDC stablecoin, is reportedly considering an IPO in 2024. There are rumors that the company has engaged with advisers about the potential IPO, although the valuation sought is yet unclear.

Knowing that Coinbase acquired ~30% of Circle in August, it will be interesting to see how the exchange benefits from the IPO. In 2022, Circle attempted to go public through a blank-check deal with a valuation of $9 billion, but the deal fell through.

As the second largest stablecoin in the market, and largest that will be available on the stock market, this will be an interesting experiment. Tether will certainly be watching whose token boasts over 3x the market cap of USDC. Stablecoins are slowly invading the world and a Circle IPO would bring them front and center.

The BIGGEST NFT Sales in the Last 24 Hours:

Notable Threads You Might Have Missed:

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.