Animoca Brands Founder Yat Siu on the State of Web3 and Future of NFTs

After the 2008 Financial Collapse, the Federal Reserve created a list of “structurally important banks” that it deemed too big to fail. In the world of non-fungible tokens, there is no such thing, but if there was one player that could come close, it might be Animoca Brands.

The Hong Kong giant has seen its valuation swell to north of $5 billion by way of investing in almost every Web3 name you can think of, including OpenSea, Metamask builder Consensys, NBA Top Shot maker Dapper Labs, metaverse projects Decentraland and the Sandbox, and Telegram’s TON blockchain, just to name a few of Animoca’s 540 portfolio companies.

As Animoca Brands co-founder Yat Siu explained to Coinage in a new interview, part of Animoca’s driving strategy has been to separate from every other fund by demonstrating an unwavering conviction in its bet on the space. And in a way, Animoca has become synonymous with Web3 itself.

“Even if you're not in Web3, if we want to have a meeting with any company in the world of any type... we can get an audience because they've heard of us somewhere, because we're sort of covered by some news, or some people know us,” he said. “Five years ago we couldn't.”

In those five years, Animoca has weathered a boom and bust cycle that has seen narratives and projects come and go. And yet, despite that downturn, the company is sticking to plans to pursue an IPO in Hong Kong that hasn’t been as challenging to pitch amid the struggles of NFTs as you might expect.

Siu recalls that times were far more difficult when he took over Animoca in 2017, when the company's market cap was closer to $5 million than $5 billion, and new ICOs were popping up every day. “The ICO sort of period was terrible for us because, you know, there was a ton of scams as well,” he said. “And now here we are, right?”

Despite the recent downturn in NFTs, Siu remains as confident as ever in the pillars of Web3 — whether it be digital property rights, new ways to unlock network effects, or tokenizing community on the internet. His goal has always been clear: To build Animoca as the backbone of Web3. The mission remains unchanged, and Siu believes that digital property rights will create a more sustainable future for everyone, allowing users to own a stake in the networks they help grow.

“The core thesis and the pillar of everything is digital property rights, right? So we want to do everything to advance digital property rights,” he emphasized.

That same mission is driving Animoca’s continued expansion into gaming and other facets of the Web3 space with the launch of its Mocaverse and respective token MOCA. Siu believes it’s more than just a business — it’s a movement. As he put it, “Web3 will create a much more sustainable future for everyone involved, because everyone essentially can be a stakeholder.”

As interoperability improves, Siu forecasted an improving ease in transferring value across currently siloed projects. “Regardless of whether it's Ethereum or Solana or TON or MOCA or SAND, it doesn't really matter, right? The point is, is that, you know, you can access them all permissionlessly,” he said.

With over 540 portfolio companies, Animoca Brands has positioned itself as a key player in shaping the future of Web3, building an ecosystem that extends beyond just gaming. And it’s that expansive reach that sets Animoca apart from any other player in the market. When asked what the common thread is between all their investments, Siu had a straightforward answer: “It’s all about the network effects.”

As the market for NFTs continues to develop and evolve, the real challenge for Animoca Brands will be educating the wider public on the broader implications of digital ownership and what it means for the future of value creation in the digital age. Siu remains optimistic that Animoca is up to the challenge and that the market will continue to respect the bets that have paid off — even if portfolio projects have retraced in 2024.

“There's a certain level of respect that comes with at least sort of saying, 'Ok, fine, you saw something that I didn't.' So, you know, you know, what else do you have to say?” he noted.

With the company's IPO plans in motion, Animoca Brands is set to continue leading the charge for a more interconnected digital future.

Coinage members can watch our full interview with Animoca Brands founder Yat Siu above. To support our community-owned outlet, own it with us, and unlock other exclusive benefits, mint one of our Membership Passes today or Stake with us today! Chat with Coinage in our Discord.