- Animoca Brands’ founder says Hong Kong’s optimistic outlook on crypto is driving the end of crypto winter.
- China’s pursuit of “de-dollarization” prompts significant crypto exploration, with $250 billion in digital currency transactions in June.
- NFTs democratize revenue for artists, while gaming emerges as a leading sector in web3.
Animoca Brands co-founder and executive chairman, Yat Siu published a blog recently in collaboration with Bloomberg where he discusses the current state of affairs in the crypto industry. Titled ‘Is the Crypto Winter Over?’, the blog features an easy yes to the question from Siu.
Bitcoin’s value is on the rise, the crypto market capitalization is finally stabilizing, investment management giant BlackRock is headstrongly pushing into the Bitcoin ETF market, and Hong Kong is welcoming retail crypto trading with open arms, the blockchain gaming company’s founder state the aforementioned as obvious signs of the sector’s improvement.
Siu has a straightforward answer to what’s the driving force behind the end of crypto winter. He credits Hong Kong’s fresh optimistic outlook towards crypto as the “game-changer” for the ecosystem. Moreover, he is confident that mainland China is on the same team as Hong Kong when it comes to the digital assets industry. Siu emphasizes:
I’m really bullish about Hong Kong. If you think about what just happened in the last six to nine months, Hong Kong has really progressed in terms of bringing people into the Web3 narrative. They wouldn’t be doing it without the approval of China.
According to Siu, China is motivated to explore crypto due to “de-dollarization,” a movement where the country is rapidly moving away from heavily depending on the U.S. dollar as a reserve currency and a primary medium of exchange. In fact, latest reports suggest, China’s digital currency transactions reached almost $250 billion in June, confirming China’s attempts to diversify its financial landscape.
Siu also acknowledges web3 as a “major thematic driving renewed interest in crypto.” In a crowd of US-based tech companies like Apple and Google, Yat Sui joined the Hong Kong Government’s Web3 Taskforce to advance Hong Kong’s Web3 agenda.
Simultaneously, NFT trading facilitated $24 billion in 2022. However, Siu highlighted how NFTs democratize power by delivering 90% of the revenue back to creators and artists in the landscape. Earlier today, during a recent Twitter Space event hosted by Huobi, NFT experts expressed “Blockchain truly revolutionizes the Art business.”
Siu concludes his study by noting that gaming is one of the sectors leading the web3 frontier. “Gamers are accustomed to virtual currency,” whether it is web2 games like Minecraft or blockchain games, digital assets are part of a familiar onboarding journey, according to Siu.
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