The NFT company made seven investments and a single exit in an early-phase NFT business in 2021.
NFT Investments PLC, a U.K.-based blockchain firm that invests in nonfungible tokens (NFTs) stated on Friday that it will no longer pursue a £96 million acquisition of Pluto Digital. Although NFT Investments did not disclose its reasons for terminating the transaction, it did write:
“The company is well-positioned to take advantage of the recent market correction in the blockchain and digital assets sectors by investing at attractive valuations.”
NFT Investments signed a non-binding letter of intent in January to purchase Pluto Digital, which builds infrastructure in the decentralized finance (DeFi) domain, by the issue of new NFT shares. From November of last year to March of this year, the blockchain industry experienced a month-long bear market, with the entire market valuation of digital tokens falling by more than 40% from their all-time highs.
However, not all cryptocurrency aficionados believe the big-picture sell-off is over. Some see the inversion of the US Treasury yield curve as a sign that a recession is on the way. The yield curve has inverted ahead of every U.S. recession since the 1950s. The previous time this happened, in August 2019, it resulted in a complete collapse of the cryptocurrency market owing to the outbreak of the COVID-19 pandemic.
Nonetheless, Jonathan Bixby, executive chairman of NFT Investments, expressed optimism in the blockchain industry:
“The NFT sector continues to show strong growth, and despite volatile market conditions, we secured a stake in seven companies that have high growth potential and are equipped to make an impact on the blockchain sector. At the same, we also took the opportunity to realize significant gains from one investment, Kodoku Studios, which produced a 349% gain due to its takeover by Pioneer Media Holdings Inc. last November.”
