Animoca Brands, a company aiming to promote digital ownership and establish an open metaverse through NFTs and games, was interviewed exclusively by Dynamic Zone. Yat Siu, the co-founder of Animoca Brands, shared his views on the current market development, NFTs, the Ordinals protocol, and more, offering insights from the forefront of the Web3 world.
Summary:
Animoca Brands collaborates with TON to open a new chapter in the blockchain gaming market.
Yat Siu, founder of Animoca Brands, believes that the approval of a Bitcoin ETF will drive the Web3 gaming frenzy.
NFT market trading volume rebounds in a single month.
NFTs that have survived the bear market will grow stronger.
Bear markets allow for a more serious evaluation of project quality.
How does Yat Siu view Bitcoin Ordinals?
Will NFTs be subject to regulation?
What is the development status of Web3 in Hong Kong?
Animoca Brands invests in TON infrastructure and becomes the largest node.
Believes that digital ownership is the only way for people to have digital freedom.
Animoca Brands has invested in over 450 Web3 projects, including popular metaverse projects like The Sandbox, Axie Infinity, and Yuga Labs, as well as various infrastructure and DeFi projects. How does Animoca Brands view the current market, the hype around the Ordinals protocol, and the future of NFTs?
In an exclusive interview with Dynamic Zone, Yat Siu, co-founder of Animoca Brands, shared his observations on the crypto world.
When asked about the current state of the crypto market, Yat expressed his belief that the bull market has indeed returned. He attributed the rise to the approval of a Bitcoin ETF, which created significant demand, as well as the liquidation of short positions, which fueled the market. Additionally, data from the blockchain shows that more liquidity is flowing into the crypto market, which is beneficial for its continued growth.
Gaming-related tokens listed on Coingecko have seen a general increase in the past week, with some projects even experiencing a 50-60% surge.
As for NFTs, which have been relatively quiet compared to the crypto market, Yat analyzed that the total trading volume of NFTs in the past 30 days has returned to nearly $1 billion. There has been significant growth since the end of October. He also mentioned that unlike the NFT summer of 2021, which was dominated by PFP (Profile Picture) projects, the current bull market will witness a more diverse and rich ecosystem.
Yat also pointed out that after experiencing the bear market, speculative NFTs have decreased in the overall market, which is actually a good thing for the ecosystem. He noted that the initial batch of NFT buyers were mostly speculators who were only interested in buying low and selling high without engaging or contributing to the projects. However, the ecosystem has become healthier now, with people purchasing NFTs for the purpose of advancing common goals, obtaining community participation, or participating in governance.
As an active investor in over 450 Web3 projects, Yat admitted that all companies were affected during the bear market. However, he proudly stated that Animoca Brands has conducted at least 50 investments this year, ranking among the top five investment institutions globally, albeit fewer than the previous year.
Yat also emphasized that bear markets make it easier to identify who the true builders are and who genuinely cares about the future of the industry, rather than solely focusing on quick profits.
Regarding the recent hype around the Bitcoin Ordinals protocol and the surge brought by the listing of the leading BRC-20 token $ORDI on Binance, Yat expressed his belief that Ordinals is not just a short-lived bubble but has the potential to fundamentally change the Bitcoin ecosystem. He even described it as a “revolution.”
Yat also emphasized that when it comes to NFTs, they should not be solely viewed from a financial perspective. Just as Bitcoin is seen as a store of value, NFTs should be seen as a cultural storage.
SEC’s charges against an entertainment media company earlier this year for selling NFTs as unregistered securities raised concerns about regulation. As a leading player in the industry, Animoca Brands was asked if they are worried about regulatory issues surrounding NFTs.
Yat made it clear that based on feedback from most regulatory agencies they have communicated with, they have no intention of regulating NFTs in a traditional way. However, he pointed out that this doesn’t mean NFTs won’t be classified as securities. The key is whether the design behind the NFTs involves securities components, with the technology being less important.
As the headquarters of Animoca Brands is located in Hong Kong, Yat was asked about his views on the current regulatory environment for Web3 in Hong Kong.
Yat Siu mentioned that he is a member of the special working group for Web3 in Hong Kong, providing advice to the government on Web3 methods and market expansion.
Regarding recent fraud scandals in Hong Kong (JPEX, HOUNAX, etc.), Yat stated that the Financial Secretary has clearly expressed that these incidents will not hinder their progress.
He also added that Hong Kong, as a former financial center in Asia, has gradually lost its influence due to the COVID-19 pandemic and the tension between China and the United States. It has been largely replaced by places like Singapore. Therefore, Hong Kong urgently needs to find a new highlight to attract global attention.
Regarding recent notable investments by Animoca Brands, Yat mentioned their investment in TON Play, a gaming infrastructure project within the TON ecosystem, and becoming the largest validator on the TON blockchain. He highlighted that Telegram has 800 million users, and almost every crypto user in the world uses it. Its brand personality, emphasizing privacy and freedom, is highly compatible with Web3 and has great potential. In the past, Telegram was difficult to commercialize as it couldn’t sell ads, integrate wallets, or integrate cryptocurrencies. However, TON has opened up a historic new chapter for Telegram. In the future, they can provide in-game tokens for millions of users on Telegram. Yat believes that Animoca Brands’ abundant resources can mutually benefit the Telegram ecosystem.
Finally, when asked about what motivates him to continue building ecosystems in the crypto world, Yat stated that he is still learning and evolving. The concept of digital ownership has awakened them in their pursuit of making the world a better place. Now, he firmly believes that digital ownership is the only way for people to have digital freedom.
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Animoca Brands
NFT
TON
Yat Siu