Yat Siu, chairman of Hong Kong-based Animoca Brands, emphasized the lasting importance of non-fungible tokens (NFTs) despite current market challenges. While NFTs are “fighting for attention with memecoins,” Siu believes their unique “non-fungible” quality will continue to be vital in Web3.
Animoca has long been a major player in the NFT space. However, the market has struggled to reach the heights of 2021 and 2022. Cryptoslam data shows NFT trade volumes have dropped from $3.24 billion in August 2021 to just $80 million last week. Siu attributes part of this decline to the rise of meme coins, which have captured some of the cultural space that NFTs once dominated.
At the Foresight 2024 event in Hong Kong, Siu explained that while meme coins are popular now, NFTs will play a key role in building digital reputation in Web3. “Thousands of NFT projects launched daily three years ago; now, that attention has shifted to meme coins,” Siu said. However, he stressed that NFTs will regain prominence as Web3 evolves, focusing more on reputation than just economic gains.
Siu sees a future where Web3 users value their digital reputation more than money. He noted that the current focus on financial aspects in Web3 has left NFTs’ potential for reputation-building underutilized. As Web3 matures, Siu predicts NFTs will be crucial in establishing a reputation layer in the blockchain ecosystem, further solidifying their importance beyond financial value.
US Election’s Impact on Animoca Crypto Strategy
Siu believes the upcoming U.S. presidential election will significantly impact the global crypto landscape. The election results could determine whether the U.S. reclaims its leadership in crypto. “If Trump wins, it’ll be aggressive; if Harris wins, it might be cautious but still positive,” Siu said. A crypto-friendly U.S. administration could revitalize venture capital activities, which have slowed since the FTX collapse, and boost interactions among Web3 industries worldwide.
Siu’s optimistic outlook suggests a positive shift in U.S. crypto policy could open new liquidity and investment opportunities. This could be a game-changer for Animoca and other Web3-focused companies.
Animoca is also exploring a return to the public market. After delisting from the Australian Securities Exchange in 2020, the company is considering an initial public offering (IPO) in Hong Kong or the Middle East by late 2025 or early 2026. “2026 seems more likely,” Siu said. While the company has not selected an advisor for the IPO, it plans to conduct a non-deal roadshow in September to showcase its initiatives and future plans.
Animoca remains financially strong, with a cash and stablecoin balance of $291 million. The company has invested in about 540 Web3 projects, reinforcing its commitment to innovation.
In conclusion, Animoca and Yat Siu remain confident in the long-term potential of NFTs and Web3, despite current challenges. As the industry evolves, Animoca’s strategic moves and focus on digital reputation could position it at the forefront of the next wave of blockchain innovation.
