Yat Siu Discusses NFTs and Web3’s Future

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 their unique attributes will remain significant.

Despite being a long-term investor in NFTs, Animoca is facing challenges as the entire market struggles to match the peak levels experienced in 2021 and 2022. Data from Cryptoslam reveals that NFT trade volume was $3.24 billion during the week of Aug. 22, 2021, contrasted with approximately $80 million last week.

In an interview with The Block at the Foresight 2024 event in Hong Kong, Siu noted, “Right now, NFTs are fighting for attention with memecoins.” He explained that, while memecoins are fungible, they are now partially fulfilling the role NFTs used to have in expressing cultural identity for celebrities and influencers.

Siu recalled that three years ago, numerous daily NFT projects were launched, a trend that is now seen with memecoins. He predicted that over time, what will matter more for reputation—rather than monetary value—will be NFTs.

Looking ahead, Siu emphasized the importance of reputation in the evolving realm of Web3. He remarked, “One of the problems right now we have in Web3 is that too many people are only thinking about the economic capital, and they haven’t yet fully identified their Web3 persona as a reputation.”

As Web3 develops to embody cultural, social, and symbolic capital, the significance of a reputation layer in blockchain—where NFTs play a crucial role—will be increasingly recognized, according to Siu.

US Election Impact

In addition, Siu discussed how the upcoming U.S. presidential election could influence the direction of crypto development in the world’s largest economy.

“Come November, the U.S. is going to aim to reclaim leadership in crypto,” he stated. He suggested that a Trump administration would take a more aggressive approach to crypto, while a Harris administration might adopt a more cautious stance, though still positive.

Siu expressed optimism that a return to a favorable outlook on crypto in the U.S. would boost venture capital activities that have slowed since the FTX collapse, stimulating interactions in the Web3 industries across the U.S., Asia, and beyond.

“In Web3, every token holder is an investor,” he noted. “So imagine that all of America now is becoming more open to crypto… This basically opens up a whole new form of liquidity.”

At the time of writing, Vice President Kamala Harris was given a 53% chance of winning the election via decentralized prediction platform Polymarket, while Donald Trump’s chances had dropped to 46%.

Both candidates have shown differing levels of engagement with the crypto sector; Trump has previously voiced support for blockchain, whereas Harris has been collaborating with crypto leaders like Mark Cuban to promote “Crypto for Harris.”

Potential IPO

Lastly, Animoca is considering options for a potential return to the public market after delisting from the Australian Securities Exchange in 2020. Siu mentioned that the firm is exploring an initial public offering in Hong Kong or the Middle East around late 2025 or early 2026, with 2026 seeming more plausible.

While Animoca has not appointed an advisor for the possible IPO yet, it plans to conduct a non-deal roadshow in September to allow investors to understand the company’s future strategies without selling securities.

In an April disclosure, Animoca stated it remains “financially strong” with a balance of $291 million in cash and stablecoins, and Siu revealed the company has invested in around 540 Web3 projects to date.