Animoca Brands co-founder Yat Siu asserts that the Web3 ecosystem continues to expand rapidly despite ongoing turbulence in cryptocurrency markets, according to an exclusive interview with Bloomberg's Reporter Engle on May 18.
Siu emphasized that the current downturn in the crypto sector differs significantly from the 2018 crash. He noted that Bitcoin (BTC) was trading below $3,000 and Ethereum (ETH) traded beneath $100 at certain points during the 2018 collapse. Siu added that most cryptocurrency adopters at that time had embraced the technology primarily for speculative purposes because the ecosystem was still developing and lacked practical utility.
Furthermore, today's cryptocurrency landscape has evolved substantially and now features diverse applications in the metaverse and non-fungible tokens (NFTs). Regarding the recent TerraUSD-triggered market instability, Siu stated it remains more contained. Moreover, Siu believes the current market downturn hasn't damaged the crypto ecosystem's fundamental utility, despite significant price declines.
Additionally, unlike in 2018 when investors converted their crypto assets into fiat currencies, he claims investors are now shifting their holdings into stablecoins or other cryptocurrency tokens amid the volatility. Through this approach, Siu believes crypto enthusiasts continue building the Web3 ecosystem, making it increasingly resilient.
When asked whether the current state of the crypto market has discouraged venture capital from investing in the space, Siu responded that those who understand the industry are actively investing. He added that Animoca Brands views the present market conditions as an emotional buying opportunity.
According to Siu, Animoca Brands' strategy isn't focused on short-term gains of three to twelve months. Specifically, he mentioned the company invests based on a 10 to 20-year vision. Siu highlighted that Animoca Brands funds projects that help expand the NFT ecosystem. The firm's recent acquisition of racing video game platform Region Games aligns perfectly with this long-term approach.
While acknowledging that ten years represents a significant timeframe, Siu stated that Web3 represents the natural evolution of the internet, and most of the world will eventually embrace it. He pointed out that a substantial portion of the global population already relies on the digital world for daily activities.
Moreover, existing Web2 platforms don't provide users with ownership or economic participation in their networks, even though their success depends entirely on user engagement. In contrast, Web3 platforms offer ownership and rewards for users' time and contributions.
