May 18, 2022
By Anjali Kochhar
Despite the recent cryptocurrency market crash, Animoca Brands co-founder Yat Siu believes the Web3 ecosystem continues to expand rapidly.
According to an interview with Bloomberg’s Stephen Engle on May 18, Siu said the recent crash in the crypto market is not similar to the 2018 rout.
He highlighted that Bitcoin was trading below $3,000 and Ethereum traded below $100 at some point during the 2018 crash adding that most crypto adopters at the time had embraced the sector for speculative purposes because the ecosystem was immature and did not have utility.
However, Siu noted that at the moment, the crypto sector has expanded and has diverse applications in the metaverse, non-fungible tokens (NFTs).
When asked about the recent TerraUSD-triggered collapse, which led the entire market to trade in the red, Siu said it is more contained. He added that the recent crash has not affected the crypto ecosystem in terms of utility, although prices took a sharp dive.
Additionally, unlike in 2018, when investors converted their crypto into fiats, he claims investors converted their holdings into stablecoins or other crypto tokens following the turmoil.
In so doing, Siu believes crypto adopters continue to build the web3 ecosystem, making it more stable.
He further said that people that understand the industry are investing actively even after the poor performance of the crypto market.
Siu added that Animoca Brands considers the current market situation an ideal buying opportunity.
According to him, Animoca Brands’ lens is not focused on the three to 12 months. Specifically, he said the company is investing based on a 10 to 20-year approach.
Siu added that Animoca Brands invests in projects that help build the network of NFTs.
Further, he said web3 is a natural evolution of the internet, and most of the world will embrace it in some 10 years. He pointed out that a significant amount of the global population already depends on the digital world.
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About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.