Animoca Brands, the co-founder of an open metaverse aiming to promote digital ownership through NFTs and games, had an exclusive interview with Dynamic Zone. They discussed Yat Siu’s views on the current market development, NFTs, the Ordinals protocol, and more, sharing his observations from the forefront of the Web3 world.
NFT Market Sees Increase in Monthly Trading Volume
NFTs that have experienced the bear market will grow stronger
Bear markets allow for a more thorough evaluation of project quality
How to 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 to achieve digital freedom
With over 450 investments in Web3 projects,
Including popular metaverse projects like The Sandbox, Axie Infinity, and Yuga Labs, the parent company of Bored Ape Yacht Club, 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 this interview, Yat Siu, the co-founder of Animoca Brands, shared his firsthand observations of the crypto world with Dynamic Zone.
At the beginning of the interview, we asked Yat about his views on the current state of the crypto market and whether the bull market has truly returned. He stated that the bull market has indeed returned.
As for the reasons for the rise, Yat mentioned that the approval of the Bitcoin spot ETF has created a significant demand, and the liquidation of short positions has provided fuel. Furthermore, data from the blockchain shows that more liquidity is entering the crypto market, which is helping it grow.
Gaming concept coins listed by Coingecko have seen a general increase in the past week, with some projects even experiencing a 50-60% surge.
In contrast to the relatively quiet crypto market, we asked Yat about his analysis of NFTs. He first mentioned that the total trading volume of NFTs in the past 30 days has reached nearly $1 billion, showing significant growth since the end of October. He also pointed out that compared to the NFT summer of 2021, which was dominated by PFP (Profile Picture) projects, this bull market will see a more diverse and rich ecosystem.
NFT market daily trading volume in the past 3 months
Yat also mentioned that after experiencing the bear market, speculative NFTs have decreased in the overall market, which is actually beneficial for the ecosystem.
He pointed out that many of the early NFT buyers were speculators who only wanted to buy low and sell high without engaging or contributing to the project. But now, the ecosystem has become healthier, as people are buying NFTs to actively participate in and support common goals or governance.
As an active investor with over 450 investments in Web3 projects, Yat admitted that all companies were affected during the bear market. However, he proudly stated that Animoca Brands has made at least 50 investments this year, ranking among the top five investment institutions globally, although it is fewer than the previous year.
Yat also emphasized that the bear market makes it easier to identify who the true builders are and who genuinely cares about the future of the industry, rather than just seeking quick profits.
Animoca Brands’ current investment landscape
Regarding the recent craze around the Bitcoin Ordinals protocol and the hype generated by Binance listing the leading BRC-20 token, $ORDI, we asked Yat about his perspective on this wave.
Yat expressed that he doesn’t think Ordinals is just a temporary bubble but can fundamentally change the Bitcoin ecosystem. He even described it as:
Yat also mentioned that when it comes to NFTs, we shouldn’t simply view them from a financial perspective. Just as we consider Bitcoin as a store of value, we should see NFTs as a cultural store.
We know that the SEC has accused an entertainment media company of selling NFTs to investors as unregistered securities. We wanted to know if Animoca Brands, as a leading player in the industry, is concerned about regulatory issues surrounding NFTs.
Yat made it clear that based on the feedback they have received 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 NFT involves securities, and the technology is not the focus.
With its headquarters in Hong Kong, we also asked Yat 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 recommendations to the government regarding Web3 methods and market expansion.
Regarding recent fraud scandals in Hong Kong (JPEX, HOUNAX, etc.), Yat said that the Financial Secretary has clearly stated 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 over time due to the COVID-19 pandemic and tensions between China and the US. It has been largely replaced by places like Singapore. Therefore, Hong Kong urgently needs to find attractions that can capture the world’s attention.
Furthermore, when discussing recent notable investments by Animoca Brands, we mentioned their investment in TON Play, a game infrastructure project in the TON ecosystem, which was officially announced at the end of November. Animoca Brands became the largest validator on the TON blockchain through this investment.
Yat stated that Telegram has 800 million users, and almost every cryptocurrency user in the world uses it. Its emphasis on personal privacy and freedom aligns well with Web3 and has great potential. Telegram has been challenging to commercialize in the past, as it couldn’t sell ads, lacked a wallet, and couldn’t integrate cryptocurrencies. However, TON has opened 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.
Lastly, we asked what motivates him to continue building the ecosystem in the crypto world. Yat expressed that he is still learning and evolving. As they think about how to make the world a better place, digital ownership has awakened them. Now, he believes that digital ownership is the only way for people to have digital freedom.
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Yat Siu
Yat Siu