Animoca Brands

‘Tens of millions’ to enter Web3 through gaming in 2024 — GameFi execs

December 17, 2023 Coin Telegraph

Animoca Brands to focus on creator economy, interoperability in 2024

December 12, 2023 Coin Telegraph

Animoca’s Yat Siu bullish on TON partnership as Bitcoin sets strong foundation for 2024

December 6, 2023 Coin Telegraph

Animoca

Animoca Brands became the biggest validator of the TON blockchain in 2023, banking on the network effect of Telegram’s 800 million users to drive GameFi adoption.

Animoca Brands co-founder Yat Siu is confident that a number of investments and partnerships could prove fruitful in 2024 as mainstream institutional interest in Bitcoin (BTC) gathers steam.

Speaking exclusively to Cointelegraph at the Next Block Expo event in Berlin, the chairman of the gaming venture capital firm highlights some 70 investments made in 2023 that are expected to deliver results next year.

Chief among these is a high-profile partnership with The Open Network (TON) blockchain, which was announced on Nov.

“We actually think that’s a tool for mass onboarding with TON wallet. What’s not to be excited about?”

Siu also said that Animoca’s acquisition of the social casual gaming platform Gamee in July 2020 is set to capitalize on its growing presence as a gaming platform on Telegram.

“There were no advertising and in-app purchases, and nothing was allowed in Telegram until recently with the integration of TON.

Animoca Brands co-founder Yat Siu gives an overview of the GameFi ecosystem during a keynote speech at the Next Block Expo in Berlin.
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Animoca becomes largest validator of Telegram’s TON blockchain

November 28, 2023 Coin Telegraph

Animoca Brands

Animoca Brands invests in Telegram’s TON blockchain protocol and becomes its largest validator as it eyes GameFi development on the platform.

Web3 investment firm Animoca Brands is set to become the largest validator of Telegram’s TON (The Open Network) blockchain and plans to deliver blockchain-based games to the messaging app’s 800 million strong user base.

An announcement shared with Cointelegraph outlined how the partnership will involve the provision of funding, research, and an analytics platform for third-party TON ecosystem applications.

The value of Animoca’s investment was not disclosed at the time of publishing, but part of the investment is understood to have been made directly into Toncoin, which has been staked as part of the validator agreement.

Animoca has carried out extensive market research on TON’s wider ecosystem focused on the platform’s ability to drive cryptocurrency and GameFi adoption.

The firm plans to strategically support TON Play, a gaming infrastructure project based on the TON blockchain. The infrastructure allows gaming applications to be built on TON and launched on Telegram, as well as port existing web-based games to the messaging app.

Ton Play will enable developers to deliver games to some 800 million Telegram users through its web application and the mobile app’s PlayDeck bot - which allows users to browse a catalog of mobile games.

Telegram's PlayDeck bot allows users to browse a catalog of mobile games. Animoca plans to deliver blockchain-based games through the channel.

Animoca will also explore the ability to port a selection of its gaming titles and applications from its portfolio of over 400 Web3 projects to Telegram.

Animoca Brands Research has also developed its own TON Analytics Dashboard, which gathers a variety of metrics from TON’s open internet ecosystem, which includes TON Blockchain, TON DNS, TON Storage and TON Sites.

Animoca Brands Research has created a live dashboard monitoring key networks of the TON ecosystem.

TON Foundation director of growth Justin Hyun said the analytics platform and in-depth research reports provided by Animoca will play an important role in infusing Web3 functionality into the everyday experiences of Telegram users.

Animoca Brands co-founder Yat Siu said the investment in TON is aligned with the firm’s efforts to drive adoption and the transition of Web2 to Web3.

“Taking part in the network’s validation underlines our faith in the successful realization of the vision behind the TON project as it looks to bring Web3 into the mainstream.”

Siu added that Animoca has identified significant growth potential of gaming within the TON ecosystem and intends to drive the development of TON-based games over the next few years.

The partnership with TON is the second instance of Animoca becoming a validator of a proof-of-stake blockchain protocol in Nov. 2023. The firm joined fan token blockchain Chiliz Chain as a validator for its native proof-of-stake authority protocol on Nov. 14.

Chiliz Chain is the backbone of Socios.com, which operates a plethora of fan tokens for some of the biggest global football and sports teams. Europe’s most loved football clubs and several household sports brands have tapped into the solution to power Web3 fan tokens and other blockchain-based offerings.

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Animoca eyes SportFi ecosystem, becomes Chiliz Chain validator

November 14, 2023 Coin Telegraph

Animoca Brands

Animoca Brands will become a validator for the Chiliz Chain as the venture capital firm looks to capitalize on the SportFi ecosystem.

Venture capital firm Animoca Brands will put its weight behind fan token blockchain Chiliz Chain as it joins the network as a validator within its proof-of-stake authority protocol.

Chiliz Chain is the backbone of Socios.com, the platform that operates a plethora of fan tokens for some of the biggest global football and sports teams. Europe’s most loved football clubs and a number of household sports brands have tapped into the solution to power Web3 fan tokens and other blockchain-based offerings.

Animoca Brands co-founder Yat Siu says the partnership presents an opportunity for his firm to combine its expertise in nonfungible tokens (NFTs) and gaming with Chiliz’s focus on sports and entertainment-focused blockchain solutions.

“We have already seen the rise of DeFi and GameFi, and we believe that SportFi represents the next major growth area that will redefine fan engagement and create new financial dynamics in the sports industry.”

Chiliz CEO Alexandre Dreyfus adds that Animoca’s addition as a network validator marks a pivotal point in the firm’s history as it looks to solidify its position as a major blockchain solution primarily focused on catalyzing Web3 functionality and the wider sports industry.

Animoca Brands becomes the latest validator of the Chiliz Chain, joining the likes of Ankr, Paribu, Meria, Luganoes and InfStones as validators. Similar to proof-of-stake blockchain protocols like Ethereum, validators authorize and enable the creation of fan tokens, NFTs and decentralized applications, as well as verifying transactions and executing smart contracts.

Animoca has a wide-ranging spread of investments across the Web3 space and has also honed its focus on the sports sector. Its Web3 sports products include One Fight Arena, AFL Mint and REVV Motorsport. The latter includes the likes of MotoGP Ignition, MotoGP Guru, Formula E: High Voltage, REVV Racing and Torque Drift.

Animoca grabbed headlines in April 2022 by acquiring French racing game developer Eden Games for $15.3 million. The deal aimed to acquire racing game development talent to enhance the REVV Motorsport ecosystem and introduce blockchain-based games focused on the genre.

Chiliz launched its own layer-1 Ethereum Virtual Machine-compatible blockchain ecosystem to support its growth in Feb. 2023. The launch marked the transition away from its Ethereum-based ERC-20 token ecosystem to its own blockchain solution.

The blockchain initially used a system of 11 active validators with proof-of-stake authority consensus, which is touted to provide faster block times, lower fees and energy usage.

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Web3 gaming investors more ‘choosy’ in crypto winter — Animoca’s Robby Yung

October 31, 2023 Coin Telegraph

Animoca Brands

Animoca Brands CEO Robby Yung says investors have been more discerning when allocating capital to Web3 gaming projects during crypto winter.

Investing in Web3 gaming has required a greater level of due diligence through a testing cryptocurrency bear market, according to Animoca Brands CEO Robby Yung.

Yung, who is also co-founder of popular Metaverse platform The Sandbox, highlighted more robust check-boxes when considering Web3 gaming investments while speaking at the European Blockchain Convention in Barcelona.

The Animoca Brands CEO said that investment propositions involve finding a mix of passionate teams with specific skill sets who are building product ideas that have a clear market fit:

“Now that we’re in a sort of crypto winter and an economic downturn, from the investor perspective, we can afford to be quite choosy because, obviously, capital is scarce.”

Yung added that the stage of development of prospective projects that Animoca Brands considers investing in is typically more mature when compared to the standards it had a couple of years ago.

*Tim Stingelin, Leo Khan, Robby Yung and Saro McKenna delve into the state of Web3 gaming at the European Blockchain Convention 2023 in Barcelona. Source: Cointelegraph*

Investors are more demanding as a result, requiring tangible progress for projects that are seeking to raise capital:

“You have to have an alpha build. Ideally, you have some kind of user testing out there when you first go out and look for external capital. It’s very difficult to raise just on the basis of the business plan in this market.”

While investors may be more discerning, Yung also conceded that companies continue to raise money and that the second half of 2023 has been a testament to that, with a number of deals being done:

“It has improved a lot, but there has been a flight to quality.”

User acquisition also remains a hurdle for the Web3 gaming space, which Yung attributed to challenges around the distribution of games. He pointed to hesitance from mainstream gaming platforms to list games that have Web3 infrastructure:

“We’ve historically been unwelcome in most traditional gaming distribution platforms, whether that’s mobile app stores, Steam or console platforms.”

Yung believes that mainstream players remain uncertain about the implications of including Web3 infrastructure in their offerings, which has initially led to a knee-jerk reaction:

“I think that the idea of putting Web3 infrastructure in would bypass their business models, as in the fees that they take for distribution.”

The Animoca Brands CEO added that the conclusions drawn prevented players like Steam, EA and Epic Games from learning more about the possibilities and engaging with the Web3 community to find solutions that cater to the wider gaming market.

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The Sandbox implements KYC measures for protocol staking

August 3, 2023 Coin Telegraph

Animoca Brands

Unverified users can still withdraw staked SAND but will be unable to make further deposits.

Metaverse platform The Sandbox will require Know Your Customer (KYC) verification for its staking processes, according to an Aug. 3 announcement.

The announcement stated that only verified users could deposit The Sandbox (SAND) tokens, which are native to the platform, and claim staking rewards, while non-verified users will be placed into withdraw-only mode. Data from blockchain analytics firm Messari shows that 123 million SAND, or 6.7% of the token’s circulating supply, is currently staked by users. The Sandbox developers wrote:

“To enhance user security and compliance, we have implemented KYC verification for our staking process. Our goal is to ensure that our users’ accounts are verified before they can participate in staking or claim their earnings."

On June 6, Cointelegraph reported that SAND was one of 68 cryptocurrencies the United States Securities and Exchange Commission (SEC) deemed to be a security in its latest lawsuits against Binance and Coinbase. SAND was deployed on the Ethereum blockchain in 2012 by San Francisco gaming firm Pixowl. In 2018, Hong Kong-based Animoca Brands acquired Pixowl via its subsidiary TSB Gaming, intending to build a 3D metaverse utilizing blockchain technology.

Citing various initial exchange offerings and private sales conducted by developers over the years, the SEC alleges:

"The information TSB publicly disseminated has led SAND holders, including those who have purchased SAND since May 2022, reasonably to view SAND as an investment in and to expect to profit from TSB's efforts to grow the Sandbox protocol, which, in turn, would increase the demand for and the value of SAND."

Since the publication of the Coinbase lawsuit, Animoca Brands co-founder Yat Siu has criticized the lack of “consistency" regarding SEC regulations and praised Hong Kong’s shifting attitude toward blockchain.

To enhance user security and compliance, we have implemented KYC verification for our staking process. Our goal is to ensure that our users' accounts are verified before they can participate in staking or claim their earnings.

Unverified users can still withdraw their $SAND,…
— The Sandbox (@TheSandboxGame) August 3, 2023

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NFT-styled debit cards the future of Web3 — Animoca founder on $30M hi investment

July 28, 2023 Coin Telegraph

NFT-styled debit cards the future of Web3 — Animoca founder on M hi investment

Animoca Brands

Animoca Brands partners with hi, a Web3 neobanking app that features cryptocurrency exchange services, conventional digital banking and customized NFT-styled debit cards.

Animoca Brands co-founder and executive chairman Yat Siu sees significant potential in the personalization of Web3-based services as his firm earmarks $30 million for the neobank platform hi.

Siu’s investment firm plans to invest in the Web3 app that combines a cryptocurrency exchange, digital banking services and a customizable nonfungible token (NFT)-styled crypto debit card offering as part of its growing ecosystem.

Speaking exclusively to Cointelegraph, Siu said hi’s vision for its NFT debit card offering intersects with his views on the interplays of culture and Web3. Hi’s flagship crypto-friendly Mastercard debit card allows users to personalize their physical cards with an NFT avatar they own.

“It is an example of the ongoing shift toward personalization, where Web3 finally allows users the opportunity to express themselves and their individuality in new and exciting ways.”

*Customizable NFT-style debit cards. Source: hi.com*

A central feature of the agreement is the potential to amplify the utility of various Web3 tokens and NFTs. The hi ecosystem features Web3-integrated financial applications and its own hi protocol, which is an Ethereum Virtual Machine-compatible sidechain.

The two companies will also look to drive the adoption of a “unique-human authentication mechanism” through the hi protocol’s proof of human identity solution.

Hi co-founder Sean Rac told Cointelegraph that the protocol’s proof of human identity solution addresses shortcomings of the Web2 era, where a handful of companies gained control over user data and identity after establishing themselves as “dominant credential providers.”

According to Rac, hi’s solution addresses this by using a dual-node structure where one set of nodes serves as identity validators responsible for verifying accounts owned by humans. Meanwhile, block producers secure the network.

Rac added that the approach could open up possibilities for “human-only” networks and decentralized applications.

Animoca Brands and @hi_com_official
We entered into a MoU for partnership to support hi's dedicated work in bridging fiat & cryptocurrency worlds to onboard #Web3 to mass, creating real-world use cases for utility tokens like $SAND, $EDU, $APE & more! https://t.co/i5qOjMluPv
— Animoca Brands (@animocabrands) July 27, 2023

The partnership will allow users to send and receive Animoca Web3 ecosystem tokens, including The Sandbox (SAND) and ApeCoin (APE). The Web3 app is touted to have over 3.5 million users.

The card service is set to allow users to pay with a fiat or crypto debit card around the world, tapping into some 90 million merchants that use Mastercard services.

The platform looks to move into a space that neobanks like Revolut and N26 have shaped, while its focus on Web3 might attract proponents and enthusiasts to get on board, even if it’s just to have a debit card to flaunt their prized Bored Ape Yacht Club, Meebit or Pudgy Penguin NFTs.

Siu added that the investment was driven by the belief that hi would bring a new set of users to Web3 and Animoca’s own brands like The Sandbox.

“We believe that hi’s core application will facilitate on- and off-ramp rails and therefore further drive mass adoption.”

There could also be significant value in the deal for Animoca, which has invested in several different NFT and Web3 projects. Siu also noted investment would begin once both parties signed definitive agreements.

The neobank has secured the green light as a virtual asset service provider (VASP) in Lithuania, while it’s also recognized as a digital currency operator by Italy’s payments service regulator. Hi’s presence in Asia is in progress, with the platform undergoing pre-registration to secure a VASP license through the Hong Kong Securities and Futures Commission.

Earlier this month, Siu told Cointelegraph that Animoca was still awaiting a regulatory license in Hong Kong for its proposed $1 billion metaverse fund. The company continues to invest heavily in blockchain gaming and Web3 projects.

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US crypto regulatory uncertainty could be Hong Kong’s gain — Yat Siu

July 4, 2023 Coin Telegraph

Animoca Brands

Animoca Brands founder Yat Siu believes Hong Kong’s efforts to foster the Web3 ecosystem are in stark contrast to regulatory uncertainty hampering development in the United States.

Industry experts believe Hong Kong’s shifting attitude toward blockchain technology, cryptocurrencies and Web3 could entice businesses away from the United States.

The city has made a series of moves over the past year to foster the development of the Web3 space and enable retail investment into cryptocurrencies. The latest example of this is the formation of its Task Force on Promoting Web3 Development.

Yat Siu, a co-founder of Web3 investment firm Animoca Brands, is one of 15 industry experts invited to be an adviser to the task force, which will interface directly with key government officials and financial regulators.

Exciting news! Yat Siu (@ysiu), our co-founder and executive chairman, has been appointed to the Task Force on Promoting Web3 Development, established by the HKSAR government. Yat believes that the work of the Task Force will help to shape not only #HongKong but also globally… pic.twitter.com/8zEfwTez9I
— Animoca Brands (@animocabrands) July 3, 2023

In a wide-ranging, exclusive interview with Cointelegraph, Siu highlighted Hong Kong’s gradual change in attitude toward crypto and Web3 in recent years, putting the city in a unique position to attract startups and established firms to its jurisdiction.

While conceding that the U.S. should not be “counted out” of the Web3 race, Siu said that many firms in the sector are operating “under a regime of fear” due to a lack of regulatory clarity. This has been exacerbated in recent months by the U.S. Securities and Exchange Commission (SEC) filing separate charges against Binance.US and Coinbase for a raft of alleged unregistered securities offerings:

“The SEC doesn’t seem to be wanting to be consistent about this, in contrast to Hong Kong, or other jurisdictions like Japan, the Middle East or even Europe, which have rules that are starting to become consistent.”

Siu said that Hong Kong had seen an opportunity to take a leadership position in terms of driving Web3 development, while the U.S. seemingly “self-sabotaged” its potential to be a prime destination for companies in the sector.

Hong Kong also held the cryptocurrency space at arms length for a number of years, with restrictive policies outlawing retail investment into cryptocurrencies only recently overturned after lengthy consultation with industry proponents.

Siu said that the government had demonstrated a level of ‘agility’ in its changing stance towards the industry, considering that it had not always been welcoming to cryptocurrency companies.

Hong Kong’s Web3 task force is also likely to be a fairly fluid arrangement. Siu told Cointelegraph that he’d been pleasantly surprised by the inclusion of so many Web3 proponents, a move that signals the city’s intent to continue fostering the sector.

The working group is yet to have a first meeting and Siu expects monthly or quarterly meetings with a variety of crypto, blockchain and Web3 working groups that have been established in Hong Kong.

Members of the Web3 task force have entered into a two-year agreement with the Hong Kong government and are set to advise on ways to drive growth of the industry. Siu envisions the task force driving development of the sector by fostering talent and encouraging exploration of blockchain solutions in tertiary education institutions:

“I think it's a great way in which we could build a closer relationship with the government and also sort of push forward the Web3 adoption agenda.”

As previously reported, Hong Kong’s efforts to kindle the Web3 sector have seen the city's Cyberport attract over 150 Web3 firms this year, while companies are reportedly spending between $2 to $25 million on attaining virtual asset service provider licenses to operate in the city.

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Animoca Brands reports $3.4B of assets in an interim financial update

May 11, 2023 Coin Telegraph

Animoca Brands

The update shows $194 million in cash, $566 million in digital assets and $2.7 billion in off-balance sheet token reserves for other majority-owned Web3 subsidiaries.

Venture capital firm Animoca Brands released an interim financial report laying out its key unaudited financial positions as of April 30, 2023. The company revealed around $3.4 billion in assets, claiming it remains financially strong despite recent reports of its valuation plummeting.

Within the update, the company highlighted a cash and stable balance worth $194 million, liquid digital assets worth $566 million — including reserves in The Sandbox (SAND) tokens — and off-balance sheet tokens worth $2.7 billion for all other Animoca Brands majority-owned Web3 subsidiaries.

According to the firm, it will release additional financial updates beginning with an audited financial statement for 2020. The firm also promised to release financial and business highlights for 2022 and the first quarter of 2023.

The update’s release follows rumors that the company has faced financial struggles. On March 24, a Reuters report citing anonymous sources said that the company had cut its metaverse fund target to $800 million, with its valuation dropping from $6 billion to $2 billion.

The company immediately responded and denied the reports. On March 25, Animoca Brands told Cointelegraph that the claims were incorrect. The firm downplayed suggestions that its valuation plummeted and that it scaled back its metaverse fund target. The company’s co-founder Yat Siu highlighted that the source’s anonymity also makes it difficult to determine their agenda.

"Angry Birds was not created by Activision." @viewfromhk, CEO of @animocabrands, explains in our exclusive chat at @ParisBlockWeek that major game companies don't always drive innovation.

Is it time for a new generation of game developers to shine in Web3? #PBW2023 pic.twitter.com/UwcujLeGYY
— Cointelegraph (@Cointelegraph) March 22, 2023

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