Tariffs to Propel Digital Worlds, Predicts Animoca Co-Founder Yat Siu

At TOKEN2049 Dubai, Yat Siu, co-founder of Animoca Brands, unveiled a visionary outlook for Web3 (the next generation of the internet, focusing on decentralization and user control), emphasizing digital property rights, AI integration, and decentralized identities. Siu’s insights not only highlight the potential of digital assets but also suggest how global economic policies, such as tariffs, could significantly enhance engagement in digital realms.

• Animoca’s mission: Standardize Web3 digital property rights on the blockchain
• AI to drive Web3 adoption
• Tariffs to push more people into digital worlds
• Gaming tokens undervalued but with strong potential

Animoca Brands positions itself as an ecosystem builder, more akin to how Apple should operate than a traditional gaming company or venture capital firm. With investments in over 570 projects since entering the blockchain space in 2017, including 165 directly related to gaming, Animoca’s mission is clear:

“Basically, if you think of us as an ecosystem builder, our mission is to make digital property rights standard in the world,”

Yat Siu stated, emphasizing the importance of digital ownership across the globe.

The turning point for Animoca was the phenomenon of CryptoKitties in 2017, described by Siu as,

“It wasn’t really a game. It was NFTs (Non-Fungible Tokens, unique digital assets that represent ownership of specific items or content on the blockchain) you could breed. Was it a great game? No. But it was the moment we understood this was big.”

This moment sparked a deep interest in Web3 gaming and the potential of programmable, ownable aspects of the internet.

Despite facing challenges, such as the underwhelming launch of Gunzilla’s Off The Grid token due to broader market conditions, Siu remains unfazed. He predicts a robust revival for gaming and metaverse tokens like SAND by the year’s end, driven by mainstream events and sentiment:

“Gaming macro was bad. All gaming tokens were doing badly,”

he admitted, yet he quickly added,

“We believe existing gaming projects that are already listed have an opportunity because they’re underpriced. They’re currently priced relative to utility, not sentiment.”

This perspective hints at a bullish outlook for the digital economy, with gaming tokens poised for significant appreciation.

The Mocaverse project, focusing on digital identity and reputation within Web3, is a cornerstone of Animoca’s future strategy. Siu sees this as a game-changer:

“Digital identity with multiples is a huge bet we’re taking. We think it’ll create a mass market in terms of digital reputation and make a huge impact.”

This project could revolutionize how digital identities are perceived and utilized across various platforms, creating a robust, reputation-based economy.

AI’s role in simplifying the user experience within the Web3 ecosystem is another focal point of Siu’s vision. He envisions AI agents transforming how users interact with digital assets, making them more accessible:

“Your wallet won’t be MetaMask. It’ll be an AI agent that does MetaMask for you, the kind of wallet I can give my grandma,”

suggesting a future where even the least tech-savvy individuals can navigate the complexities of blockchain technology with ease.

Intriguingly, Siu sees tariffs, often considered economic barriers, as a positive force for digital industries. He posits that as physical goods become harder to acquire due to tariffs, people will turn to digital entertainment and assets, which are not subject to such restrictions:

“Tariffs are positive for digital industries. If people can’t buy goods as easily, they turn to entertainment and games, and remember, there’s no tariff on software or Bitcoin,”

highlighting the borderless nature of digital assets and their potential as a safe haven during trade restrictions.

Finally, Siu’s take on gaming tokens reflects his broader view on the digital economy:

“No, I think they’re fundamentally undervalued,”

pointing towards a future where gaming’s role in the global economy could lead to significant appreciation in these tokens.

Key Takeaways and Questions

• What is Animoca Brands’ mission?

  Animoca Brands aims to make digital property rights a global standard, using gaming and investments to build a broader digital ecosystem.

• How does Yat Siu view the impact of CryptoKitties on Web3 gaming?

  CryptoKitties was a pivotal moment that highlighted the potential of NFTs and programmable, ownable aspects of the internet, sparking Animoca’s interest in Web3 gaming.

• What challenges have Animoca faced with token launches?

  Token launches like Gunzilla’s Off The Grid underperformed due to broader market conditions rather than the quality of the products themselves.

• Why does Yat Siu believe gaming and metaverse tokens are undervalued?

  He believes these tokens are currently priced based on utility rather than sentiment and that gaming’s role in the global economy will grow, leading to a strong comeback.

• What is the Mocaverse project, and why is it significant?

  Mocaverse is a project focused on digital identity and reputation, aiming to create a mass market in Web3 by establishing a robust, reputation-based economy.

• How does Yat Siu see AI impacting Web3?

  AI will act as a catalyst for Web3 adoption, with AI agents serving as user-friendly wallets and driving growth in user-generated content and autonomous agents.

• What is Yat Siu’s perspective on the impact of tariffs on digital industries?

  He views tariffs positively for digital industries, as they push people towards digital entertainment and assets, which are not subject to tariffs.

• Why does Yat Siu believe gaming tokens reflect broader economic trends?

  Gaming tokens mirror the growth of gaming’s role in the global economy, currently undervalued and poised for significant appreciation by the end of the year.

Yat Siu’s vision underscores the transformative potential of digital assets and challenges us to consider how economic dynamics might shape our digital experiences. With a focus on technology, economics, and digital rights, Animoca Brands is at the forefront of a revolution that could redefine our engagement with the digital world. Yet, let’s not get carried away by the hype—tariffs might boost digital worlds, but they’re no magic bullet. And while gaming tokens may be undervalued, the crypto market’s volatility remains a wild card. As we navigate this evolving landscape, it’s crucial to balance optimism with a healthy dose of realism.