NFTs Competing with Memecoins

Yat Siu, chairman of Hong Kong’s Web3 venture capital Animoca Brands, stated that non-fungible tokens (NFTs) are currently "fighting for attention with memecoins," but emphasized their non-fungible nature will always hold relevance.

Despite Animoca's long-term investments in NFTs, the overall market struggles to return to peak levels seen in 2021 and 2022. As per Cryptoslam data, the NFT trade volume reached $3.24 billion in the week of August 22, 2021, but dipped to approximately $80 million last week.

> "Right now, NFTs are fighting for attention with memecoins," Siu remarked in an interview at the Foresight 2024 event in Hong Kong, explaining that memecoins, though fungible, have begun to take over some roles originally played by NFTs in showcasing cultural expression.

Siu reflected on the explosion of NFT projects three years ago, noting that a similar trend is seen with memecoins today. He projected that as the market matures, reputation, rather than financial gain, will hold more significance, and NFTs will become central to establishing this reputation.

Siu advocated for focusing on Web3 as a way to build strong reputations, highlighting that many individuals currently prioritize economic capital over their Web3 personas.

> "One of the problems right now in Web3 is that people are focused on economic capital," he noted.

He believes that as Web3 develops, it will foster cultural and social capital, where a reputation layer in blockchain will be fundamental, and NFTs will play a crucial role due to their non-fungibility.

US Election and Crypto Future

The impending U.S. presidential election results could significantly influence crypto development in the world’s largest economy, according to Siu.

> "Come November, the U.S. is going to aim to reclaim leadership in crypto," he said, predicting that if Trump wins, it will be aggressive, whereas a Harris victory would be cautious but still positive.

He expressed hope that a positive shift toward crypto in the U.S. would reignite venture capital activities that have cooled since the FTX collapse. Increased capital flow could enhance interaction between Web3 industries across the U.S., Asia, and globally.

> "In Web3, every token holder is an investor. Imagine if America became more open to crypto… This could unlock a new form of liquidity."

At the time of writing, betting odds on the decentralized prediction platform Polymarket showed Kamala Harris with a 53% chance of winning, while Donald Trump’s odds decreased to 46% from 70% in mid-July.

Though Trump has backed blockchain and crypto, Harris' campaign has reached out to crypto leaders like Mark Cuban for promotion efforts. An event named Crypto4Harris is planned where crypto experts will discuss revamping the industry’s connections to Harris.

Potential IPO for Animoca

Animoca is also exploring options for a potential return to the public market, following its delisting from the Australian Securities Exchange in 2020. The company is considering an initial public offering (IPO) in Hong Kong or the Middle East, likely in late 2025 or early 2026.

> "Frankly, I think 2026 seems more likely," Siu told The Block.

Although Siu mentioned that the company hasn't selected an advisor for the IPO yet, Animoca plans to hold a non-deal roadshow in September. Such roadshows allow investors to learn about a company’s current operations and future plans without the intent of selling securities.

In an April disclosure, Animoca stated it remains financially robust with $291 million in cash and stablecoins and has invested in approximately 540 Web3 projects to date.