According to an interview on May 18, Animoca Brands co-founder Yat Siu thinks the web3 ecosystem will continue to grow rapidly despite recent volatility in the crypto markets. According to Siu, the latest crypto market meltdown is not comparable to the 2018 market crash. He added that Bitcoin was trading below $3,000 and Ethereum was trading below $100 during the 2018 meltdown.
He remarked that most crypto adopters at the time did so for speculative reasons because the ecosystem was young and lacked usefulness. However, he believes that the crypto industry has grown and now has a wide range of uses in the metaverse, including non-fungible tokens (NFTs).
Siu stated that the recent TerraUSD-caused collapse is now more confined. Furthermore, Siu feels that the latest fall has had little impact on the crypto ecosystem in terms of utility, despite the fact that crypto prices have crashed. He further claims that, unlike in 2018, when investors turned their crypto holdings into cash, they shifted their crypto holdings into stablecoins or other crypto tokens in response to the recent market volatility. Siu thinks that by doing so, crypto users will continue to strengthen the web3 ecosystem, making it more reliable.
He stated that Animoca Brands sees the current market volatility as a great opportunity to buy more crypto assets. He emphasised that those who understand the crypto market are actively investing in it.
He claims that Animoca Brands’ emphasis is not on the next 3 to 12 months. Animoca will continue to invest in crypto over the next 10 to 20 years. According to Siu, Animoca Brands is investing in projects that assist in growing the network of NFTs.
Despite the fact that 10 years is a long period, Siu believes that web3 is a natural progression of the internet that the majority of the world will welcome. He pointed out that the digital world already serves a large portion of the worldwide population.
