Yat Siu, chairman of Hong Kong-based Web3 venture capital firm Animoca Brands, said that while non-fungible tokens are currently “competing for attention with memecoins,” their “non-fungible” nature will ensure their continued relevance.
Animoca has been investing in NFTs for the long term, but the overall market is struggling to catch up to its peak numbers in 2021 and 2022, according to Cryptoslam. dataThe total NFT trading volume for the week of August 22, 2021 was $3.24 billion, while the market hit around $80 million last week.
“NFTs are competing for attention with Mimecoins right now,” Siu told The Block at the Foresight 2024 event in Hong Kong. He explained that Mimecoins are fungible, but they have taken on a part of the role that NFTs play in expressing culture to many celebrities, influencers, and users.
“I don’t know how many NFT projects were launched every day three years ago, but now you see them on Mimecoin,” Animoca said. “Eventually, when that cycle continues… what’s more important to your reputation than money? NFTs.”
Siu added that the future will be focused on Web3 as a means of building a strong reputation. “One of the problems we have in Web3 right now is that too many people think only about economic capital, and they haven’t fully figured out Web3 personas as reputation yet,” he said.
According to Siu, as Web3 evolves towards embodying cultural, social, and symbolic capital, users will recognize the importance of reputation hierarchies on blockchains, and NFTs will play a vital role in providing non-fungibility.
The US presidential election is underway
Meanwhile, the outcome of the upcoming US presidential election could determine the direction of cryptocurrency development in the world’s largest economy.
“Come November, the U.S. will be aiming to reclaim its leadership in crypto,” Siu said. “I think Trump will be gun-slinging, while Harris will be more cautious but not negative.”
The Animoca founder said in an optimistic outlook that a return to positive sentiment for cryptocurrencies in the US would revive venture capital activity that had been relatively quiet since the FTX crash. Siu also said the potential increase in capital flow would stimulate interaction between the Web3 industry in the US, Asia, and other parts of the world.
“In Web3, every token holder is an investor,” Siu said. “So imagine the entire United States now becoming more open to cryptocurrencies… It basically opens up a whole new form of liquidity.”
On a decentralized prediction platform PolymarketAt the time of writing, Vice President Kamala Harris had a 53% chance of winning the election, while Donald Trump’s chances have fallen from 70% in mid-July to 46%.
While Trump has expressed support for blockchain and cryptocurrencies, the Harris campaign recently began working with crypto leaders like Mark Cuban to promote “Crypto for Harris,” a group of crypto experts and lawmakers. Speech Schedule There was an attempt to improve Harris’s relationship with the cryptocurrency industry at an event called “Crypto4Harris” on Wednesday.
Potential IPO
Meanwhile, Animoca is exploring a possible return to the public markets following its delisting from the Australian Stock Exchange in 2020. The company said it was considering: Initial Public Offering (INPUT) We plan to expand into Hong Kong and the Middle East in late 2025 or early 2026.
“Honestly, 2026 seems more likely,” Siu told The Block.
Siu said the company has not yet selected an advisor for the potential IPO, but Animoca plans to conduct a non-traded roadshow in September in preparation. The non-traded roadshow will allow investors to see the company’s current initiatives and future plans, such as an IPO, without the intent to sell securities.
Animoca said: Released in April It said it was “financially strong” with $291 million in cash and stablecoin balances. Siu said the company has so far invested in about 540 Web3 projects.
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