Interview With Yat Siu
Animoca Brands chairman and co-founder Yat Siu is one of the nicest and most approachable people not only in all of Web3 but also in the top tier of the most influential crypto movers and shakers. He’s a legitimate Web2 gaming OG who found his way to crypto through NFTs back in 2017.
Yat is an outspoken proponent of what he calls “true digital property rights,” and he also sits on the Task Force on Promoting Web3 Development in the Hong Kong SAR.
Animoca drove most of the 2021 NFT and gaming bull market narrative, and the Web3 pioneer’s incredible stable of investment winners, such as Axie Infinity, OpenSea, Dapper Labs and various crypto gaming stars, catapulted them to the top during the last cycle.
In March 2023, it launched Mocaverse, an innovative Web3 community connected through its unique NFT collection of 8888 Mocas, categorized into five tribes: Dreamers, Builders, Angels, Connectors, and Neo-Capitalists. Mocas represent different personas in the Web3 ecosystem and offer many associated initiatives and benefits to their holders.
Fast forward to 2024, with a miserable bear market for particularly Web3 gaming in the rearview mirror by all accounts, as the top GameFi tokens’ market cap nearly tripled over the last year, from $7.5 billion to $21 billion at present.
CoinMarketCap caught up with Yat Siu at Token2049 to talk about the blockchain visionary’s background, thoughts on the state of crypto now and Web3 in 2030, and Animoca’s latest projects, including Mocaverse and its involvement with the Telegram-powered TON chain.
How did you migrate from Web2 gaming to Web3?
Yat Siu: I've been in the tech space since the 1980s, starting with Atari. I went from there to online services, including a free internet service called CompuServe. This was during the computer era in the mid-80s, which propelled me into the digital internet space, or pre-internet space.
I was part of the first wave of the internet. I used Mozilla, saw the birth of Netscape, and set up some of the very first internet service providers. Silicon Valley really became a force during that era, and its influence today came from what happened in the ‘80s and ‘90s.
After a messaging business that was later acquired by IBM, I got back into gaming around 2009. Animoca, our company, officially started in 2011 as a game company.
How did you get into the NFT and crypto space?
Yat Siu: We got into the space because of NFTs, not Bitcoin. Our studio in Vancouver was involved in building CryptoKitties back in 2017. When it broke out, we realized how interesting it was and started to understand what it meant for digital ownership. We ended up becoming the publishers for our region and invested in various projects like OpenSea and Axie Infinity.
This was back in 2018 when NFTs were kind of a dirty word. People didn't really understand what it meant, even within the crypto community. It's very similar to how some of the OG Bitcoin maximalists react to new developments today.
Do you think opposition from incumbents is a necessary evil for networks to evolve?
Yat Siu: Actually, yes, I do. To me, it's kind of representative of a class struggle. It's like, "Hey, this is my turf, and now you're coming in and how dare you take value or make money in my environment." It's really about protecting their own status.
The powerful thing about networks and network effects is that you can never predict where they'll go. You might write a piece of code for one purpose, but the wisdom of the crowds creates wonderful, amazing stuff that you could never have predicted. We benefit as a result of that.
What is Moca ID and how does it help solve Web3 digital identity challenges such as Sybil attacks?
Yat Siu: We're probably the biggest investor in anything related to NFT culture and metaverse. One critical project for brands is Moca ID, which we're adopting as a way to create digital reputation on-chain.
The genesis of Moca ID came from issues we faced with KYC wallets being sold to third parties who shouldn't have passed KYC. Sometimes up to 70 or 80% of wallets were mixtures of farming or people just hoping for good luck. This is a problem that plagues our industry.
Moca ID is trying to solve the trust problem. We're creating a reputation stat that indicates how you've behaved in the Web3 space. Think of it almost like a Certificate of Good Standing in Web3. This will solve many problems, not just Sybil attacks and botting, but also issues with scammers or people thinking short-term.
What other Web3 areas other than gaming are you exploring?
Yat Siu: We're involved in education with Open Campus, where we're onboarding universities, colleges and students into the space. Education is a $5 trillion market, significantly larger than gaming. There's massive potential in moving education on-chain, including possibilities for managing student loans more efficiently.
We're also focusing on being institutional-ready. Our MOCA token has performed well compared to other gaming and metaverse tokens because it has institutional backing. To attract institutional investors, you need to show your roadmap and plans clearly.
We're also exploring NFTs as a way to protect intellectual property rights and as proof of humanity. In a world where AI is becoming more prevalent, it's crucial to have ways to verify that you're dealing with actual humans who have reputations built over time.
What do you look for when Web3 founders pitch to you?
Yat Siu: Generally speaking, we love looking at projects that have an eye for impact and purpose. It doesn't have to be about saving the world, but we look for founders who are passionate and are trying to build something greater than themselves. These are the types of founders who are willing to persevere through the hardest times, which is crucial in the volatile crypto space.
We also look for founders who believe in the shared network vision of Web3. It's about building greater value for everyone, not just creating monopolies. Of course, technical competence and the ability to build great products are also essential, but these additional attributes are what we look for to be successful in this space.
What’s your connection with The Open Network (TON)?
Yat Siu: I'm very excited about what the TON ecosystem is doing. We're one of the biggest validators of TON. One of our projects, WAM, has launched with almost 100 million users now. There are 80 games you can play right now on WAM.
We're also super excited about Mocaverse. The TON Foundation has become a stakeholder, and we're working on bringing our identity solutions to TON users as well. The combination of expanding reputation systems and bringing more users into this space are, I think, the key drivers of growth.
How do you see the future of Web3 in 2030?
Yat Siu: By 2030, I believe we won't be talking about blockchain as a separate concept anymore. Three major shifts will have occurred:
1. Billions of people will be using Web3, leading to broader financial literacy.
People will have a better understanding of financial systems and will think more like investors or owners.
2.People will expect value for what they're giving.
They'll be more rational about joining networks, considering the benefits beyond just entertainment or social connections.
3. I think DAOs will become bigger than traditional organizations.
We'll see token networks become commonplace, fundamentally changing how we interact with and value digital spaces.
Do you use CoinMarketCap, and if so, how?
Yat Siu: Yes, I use CoinMarketCap. I have a profile where I sometimes post updates for the community. CoinMarketCap is quite vibrant and is the most influential information source for pricing and communities. You guys are doing an incredible job, and this type of information flow is really important for keeping people informed about the market.
Follow Yat Siu’s posts on CoinMarketCap community here:https://coinmarketcap.com/community/profile/ysiu/
