Animoca Brands co-founder says web3 is growing despite the recent crypto crash
Animoca Brands co-founder Yat Siu claims the recent crypto market rout is different from the one in 2018 because the industry has more utility, which makes it stable.
Animoca Brands co-founder Yat Siu believes the web3 ecosystem continues to expand rapidly despite the recent turmoil in the crypto markets, according to an interview with Bloomberg’s Stephen Engle on May 18.
Siu said the recent crash in the crypto market is not similar to the 2018 rout. He highlighted that Bitcoin (BTC) was trading below $3,000 and Ethereum (ETH) traded below $100 at some point during the 2018 crash. Siu added that most crypto adopters at the time had embraced the sector for speculative purposes because the ecosystem was immature and did not have utility.
However, at the moment, the crypto sector has expanded and has diverse applications in the metaverse, non-fungible tokens (NFTs). Speaking about the recent TerraUSD-triggered collapse, Siu said it is more contained. Moreover, Siu believes the recent crash has not affected the crypto ecosystem in terms of utility, although prices took a sharp dive.
Additionally, unlike in 2018, when investors converted their crypto into fiats, he claims investors converted their holdings into stablecoins or other crypto tokens following the turmoil. In so doing, Siu believes crypto adopters continue to build the web3 ecosystem, making it more stable.
Investors with a long-term outlook continue investing in crypto
Sharing his thoughts on whether the poor performance of the crypto market has discouraged venture capitals from injecting funds into the space, Siu said people that understand the industry are investing actively. He added that Animoca Brands considers the current market situation an ideal buying opportunity.
According to him, Animoca Brands’ lens is not focused on the three to 12 months. Specifically, he said the company is investing based on a 10 to 20-year approach. Siu added that Animoca Brands invests in projects that help build the network of NFTs. The company’s recent acquisition of French video game studio Eden Games aligns with this strategy.
Although he admits ten years is a lot of time, Siu said web3 is a natural evolution of the internet, and most of the world will embrace it. He pointed out that a significant percentage of the global population already depends on the digital world.
However, the current web2 platforms do not offer users a say or stake in their operations, even though their existence solely depends on user activity. On the other hand, web3 platforms offer stakes and rewards for their time and engagement.