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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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Atari founder, Animoca sees Web3 games as vital for virtual ownership and education

August 25, 2023 Coin Telegraph

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"I was gobsmacked" — Nolan Bushnell said his conversation with Yat Siu on Web3 games changed his brain.

Nolan Bushnell, the founder of Atari and inventor of Pong — one of the first commercially successful video games — has shared optimism for the future of Web3 games, particularly as it comes to bringing ownership to virtual worlds.

During the Digital Entertainment Leadership Forum in Hong Kong on Aug. 25, Bushnell spoke alongside Animoca Brands co-founder Yat Siu, discussing the past, present and future of gaming. It was moderated by Sean Hung, the managing partner of Chiron Group.

Bushnell, who Yat Siu acknowledged as the “grandfather of gaming” — praised Web3 games for their ability to extend the concept of ownership into the digital landscape.

“Games will increasingly imitate all factors of life. Web3 with blockchain suddenly transmits ownership into the virtual world.”

The Atari founder currently serves as the Chief Knowledge Officer at Web3 gaming company Moxy — and kicked off the panel by sharing the topline details of a conversation he’d had with Siu in the days prior:

“I was just gobsmacked. I mean, we had you know, every once in a while you can have a conversation that changes your brain. We had one of those.”

I'm excited to be speaking at the DELF event. We've chosen Hong Kong for https://t.co/GNemkV0YDf's entrance to the Asian Market https://t.co/phUuANd9LB
— Nolan K Bushnell (@NolanBushnell) August 15, 2023

While Bushnell launched into his prediction of a world in the not too distant future, where the inside of self-driving cars could become a mobile gaming studio, Siu pointed to the potential of Web3 games to help economically monetize gameplay, as games become a more ubiquitous part of everyday life.

“The impact that Web3 gaming has already had…is that you can start earning money with the engagement of the time that you spend in these games.”

Siu said that despite games originally taking the form of “player versus environment” systems, where gamers play against the non-player characters (NPCs), the world of gaming — as seen through the rise of Minecraft and Roblox — has evolved to become a multiplayer ecosystem.

“You don't go to Fortnite to play against yourself or an environment. You go online to play against others, meaning that we, the players, are the content, but the difference is that we haven't really been compensated for it,” Siu explained.

When asked what he saw as the biggest promise provided by Web3 games, Bushnell said that the combination of “KYC and the immutability of blockchain” were the best ways to ensure that players in online games were not bots or bad actors.

Additionally, Bushnell predicted that games would soon become an essential part of the classroom, with students learning best by way of “story and simulation.”

While the positives of Web3 games were readily espoused, Yat Siu noted some of the issues that had arisen alongside the proliferation of blockchain gaming.

“When you introduce Web3 and blockchain to any system, including games, you're introducing capitalism. And so the problems we have seen in the last 12 to 18 months comes from the fact that these games have become not just capitalist to the studio that produced it, but to every participant,” Siu said.

Despite the many flaws introduced by the financialization of games — many of which became readily apparent in the “toxicity” of play-to-earn games like Axie Infinity — Siu said that the inherently capitalist element would aid young gamers in gaining a financial education.

“If the world becomes more financially literate because of Web3 gaming — because they understand something about value — then I think the world will become safer.”

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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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NFT games are ‘only scratching the surface’ of what’s possible — Animoca’s Yat Siu

October 14, 2022 Coin Telegraph

Animoca Brands

Yat Siu thinks it's only a matter of time until more advanced models of NFT gaming are created, designed around the ideas of digital ownership, interoperability and economic utility.

Animoca Brands co-founder Yat Siu believes nonfungible token (NFT) games are only scratching the surface of what's possible and predicts completely new models of gaming will be developed as a result of digital ownership.

Speaking to Cointelegraph, Siu likened the potential growth of NFT gaming to mobile phone gaming, which started out relatively niche and clunky in its formative stages before rocketing to become the most popular method of gaming across the globe.

“Mobile gaming brought a form factor of a type of game that we've never seen before, you know, one-hand play and that kind of stuff, and innovations around how you play with AI [artificial intelligence]. Because of the fact that you have this limited form factor, it became the most popular form factor in gaming,” he said.

Siu commented that while many blockchain games themselves also have a clunky experience at this stage, the whole sector is still quite new. As such, it is only a matter of time until more advanced models are created that are designed around the ideas of digital ownership, interoperability and economic utility for the user.

“With NFT games, we’ve only really scratched the surface. Everyone's very focused on ownership. [...] I think it's going to mushroom into everything and we're going to see new kinds of game formats emerge because of the ownership that we weren't able to do before.”

In the interim period, Siu pointed to metaverse gaming platforms and massively multiplayer online games as models that fit well with NFTs, as you “can trade items and you have deep levels of economic design” that make sense.

The Animoca co-founder also argued that many current users are willing to accept that the blockchain gaming experience is not necessarily smooth at this stage.

He suggested that this was because they are aware of the significance of being able to own a stake in the games, as opposed to the traditional model in which people sink capital into games that they can never retrieve.

“I mean, when you think of this [blockchain games], you could say it's a UX [user experience] nightmare. But because of ownership, people put up with it not just because it's valuable, but because it's meaningful because this is my land, this is my car.”

Asked when NFT technology will get to a point of seamlessness that even a grandmother can use it without being aware of it, Siu emphasized this would likely be through the widespread tokenization of physical things, NFT integration with commonly used services and how people interact with each other.

He outlined that as the world continues to become more digitally focused, children will of course want digital things.

“Grandma is probably going to buy a digital item for their grandchildren as a way to not just as a gift that's relevant to them, but also as a way to interact,” he said, adding that vice versa, a grandchild could even gift their grandmother a digital illustration that they drew.

“We're going to have a digital world. These digital artifacts and art and creativity and games and utility that's going to be mushrooming in the thousands and thousands and thousands of small medium enterprises that are going to be doing this.”

Yat Siu: Asia GameFi opportunity huge as gamers don’t hate NFTs

September 27, 2022 Coin Telegraph

Animoca Brands

The Animoca Brands co-founder suggested that Asian gaming companies don’t have to deal with the same amount of pushback against NFTs that U.S companies have faced.

Animoca Brands co-founder Yat Siu thinks that GameFi has the biggest opportunity for growth in Asia, as gamers there don’t hold the same vitriol towards nonfungible tokens (NFTs) as they do in the West.

Sitting down with Cointelegraph during Asia Crypto Week, Siu argued that Asia generally has more of a welcoming culture towards gaming and advancements in tech such as NFTs, digital property and Play-to-Earn (P2E).

“I think that Asia has the potential to really lead in blockchain gaming, at least in the short term. And there's a couple of reasons why I think that's the case. Not just because, you know, there's the most gamers in this region of the world. [...] but it's also because gamers in Asia are welcoming NFTs.”

“Gaming companies in the West have to deal with consumer resistance that gaming companies in Asia do not have to,” he added.

The Animoca co-founder attributed this acceptance of NFTs to a broader Asian viewpoint on capitalism, which he suggested is viewed more favorably in the region — barring China — than in the U.S., as people see it as a path out of poverty.

He pointed to examples such as South Korea, which “only four decades ago” had the same size economy as North Korea but has swiftly climbed the global rankings through innovation, “creativity, legal frameworks, and property rights” despite lacking natural resources.

“The consumer in Asia looks at capitalism as a net-good fight. In other words, okay, there is inequity. There's a guy who made a lot of money, but [people] think ‘I can get there too, or I have an opportunity,’” he said.

Drawing a contrast to the United States, Siu highlighted that capitalism draws a more demonized view by some people there, and rightly so as many people haven’t seen capitalism “work for them.”

He argued that this type of thinking ultimately bleeds into gamers pushing back on NFTs, as people worry about being priced out of the market with expensive NFTs that are seen as a “rich man’s tool.”

“When the headline news isn't a $5 or $10 in-game NFT item, but a $300,000 Bored Ape well, then, you know it's a little bit like saying the entire car industry is just Lamborghinis. That's not true either. But that's what we see. And so the rejection in the West comes from that lens.”

Expanding on the Asian context, Siu also emphasized that blockchain gaming is opening up access to venture capital from Silicon valley that hasn’t really been tapped before, especially in the context of countries like the Philippines where P2E gaming guilds have become quite popular.

He again highlighted that this is due to a vibrant ecosystem that is growing in Asia as many gamers are adopting the tech while many projects are actively innovating in the space.

“Now you have companies like a16z, not just ourselves investing but also Silicon Valley money moving into Vietnam and Philippines. I think that's unheard of. So that's kind of exciting as well. I do think Asia is pointing towards a web three blockchain gaming future. Broadly speaking,” he said.

Yat Siu

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