Yat Siu Shares Insights on the Ways Web3 is Transforming the Gaming Landscape, Digital Identities, and Future Ownership.

Yat Siu As Co-founder and Executive Chairman of one of the leading firms in the industry, Yat has played a crucial role in shaping Web3, beginning with his involvement in the popular phenomenon of CryptoKitties. This venture served as his introduction to NFTs and blockchain, which he quickly recognized as catalysts for radical changes in gaming, digital ownership, and online identities. Animoca Brands In this conversation, Yat opens up about the evolution of Web3, the hurdles of transitioning from Web2 to Web3, and how Animoca is strategically investing in gaming, NFTs, and decentralized technologies to mold the industry's future.

My adventure into Web3 commenced with CryptoKitties. Back in 2017, our team in Vancouver was significantly engaged in developing CryptoKitties, which is where we first encountered NFTs. At that time, NFTs were a relatively obscure concept. Our deep involvement in CryptoKitties marked a crucial turning point for us, establishing our formal presence in the Web3 arena. You could say NFTs were our gateway into this vibrant new world.

Can you share your journey into Web3? 

Before that pivotal moment, while I had a keen interest in Bitcoin and blockchain technology, I wasn't an early adopter. I wasn't among the first to hold Bitcoin, nor did we partake in initial coin offerings when they were the hype. Our entry into Web3 happened after the ICO excitement had started to fade. Nevertheless, we were captivated by what decentralized systems and blockchain technology could offer, and we soon understood the significant impact Web3 would have on gaming, ownership, and digital identity.

Today, we are deeply embedded in the Web3 ecosystem, boasting a diverse portfolio that spans multiple projects in gaming, NFTs, and decentralized technologies. Even if we didn't come from the original Bitcoin or Ethereum 'OG' wave, we firmly believe in the long-term prospects of Web3 and its transformative potential across industries worldwide. Our journey has been filled with learning experiences and excitement as we have actively participated in this rapidly evolving space from its very inception to the present day.

How has your experience in Web2 gaming shaped your approach to developing within Web3?

My experience in Web2 gaming has significantly shaped our strategy for building in Web3. We originate from a gaming background, and that foundation has equipped us with a profound understanding of what factors contribute to the success of games and platforms from both user experience and design perspectives. One crucial insight we've gained is the importance of user interface and design, which has proven invaluable in facilitating a smoother transition for Web2 users stepping into the world of Web3.

One aspect we frequently receive compliments on is our knack for simplifying complex Web3 concepts for Web2 users in a relatable manner. Navigating the Web3 space can be daunting, especially for those accustomed to a more traditional internet experience. With our background in Web2 gaming, we are adept at making convoluted ideas more straightforward and bridging the gap between the two realms. We've effectively become intermediaries or ambassadors in this domain, helping to unite the two differing worlds.

Moreover, we have had the privilege of advising larger Web2 gaming companies keen on exploring Web3 and integrating blockchain into their models. Often, these organizations seek our guidance on how best to navigate the Web3 landscape and the most effective user acquisition strategies to implement. Our Web2 experience grants us a distinct edge in this regard, allowing us to leverage our expertise in building businesses and engaging users in traditional contexts while applying that knowledge to the evolving Web3 ecosystem. For instance, while Web3 often emphasizes incentives and airdrops to attract users, we appreciate the significance of classic advertising and marketing techniques from Web2, understanding how they can work in harmony with the new Web3 framework.

Do you think it's easier to cultivate a fresh generation of gamers starting directly in Web3, or is it more effective to facilitate Web2 gamers' transition into Web3?

From what we've observed, the majority of gamers actively participating in Web3 today exemplify a new breed of player. Many hail from emerging markets, such as the Philippines and Indonesia, where individuals are motivated to engage in games that provide avenues for financial gain. These gamers differ markedly from those who enjoy beloved Web2 titles like Minecraft, Roblox, or Fortnite, as their motivations and gaming experiences vary significantly.

Web3 players typically place a premium on financial incentives as their primary objective, contrasting sharply with the conventional Web2 gaming approach where playtime is largely driven by enjoyment and camaraderie rather than profit. In the Web3 context, gaming is often centered around a play-to-earn model, with the monetary aspect serving as the main attraction for numerous participants.

Games like Off The Grid are noteworthy examples as they attempt to bridge these two worlds. Much like traditional Web2 competitors such as PUBG or Fortnite, Off The Grid is intensely competitive while incorporating Web3 mechanics in a manner that feels accessible and not overly intimidating for those familiar with Web2. This illustrates an effective strategy for attracting Web2 players into the Web3 domain.

Nonetheless, it’s important to recognize that we are addressing different cultural and economic mindsets, especially when considering players from regions such as Asia compared to the Western market. In Asia, there is a greater acceptance of monetizing gaming experiences, while Western audiences may prioritize gameplay for enjoyment, treating financial gains as secondary or, at times, less significant. Successfully bridging this divide and appealing to both categories of players will be crucial as Web3 gaming continues to progress.

What’s your outlook on introducing newcomers to Web3? Do simpler games like clickers play a role in drawing in new users, or are they merely tools for profit?

When it comes to welcoming new players into Web3, the emphasis should be on making the experience enjoyable and rewarding. Various types of games—ranging from easy-to-play clickers to intricate strategy challenges—are crafted with incentive structures that encourage engagement. While the mechanics might differ, the underlying principle remains consistent: to captivate players by offering something of value in exchange for their time and participation.

Consider poker as an illustration. While it undeniably involves financial stakes, many casual players enjoy it socially at home rather than with the expectation of making a living from it. The allure of the game stems from social interaction and the thrill of competition rather than solely from monetary gain.

Initially, the focus on financial profit in Web3 gaming led to an environment dominated by professional players or individuals solely pursuing monetary rewards. This created barriers for casual gamers, resulting in numerous issues such as cheating, automated participation, and exploitation.

However, blockchain technology brings potential solutions to address these challenges, including the development of digital identity verification and measures to combat fraud. If we can devise effective methods to curb fraud and establish secure, fair gaming environments, I truly believe Web3 games will become much more appealing to Web2 players, who are accustomed to a more conventional gaming atmosphere.

How would you characterize the current state of the market? Are we in a bullish phase right now?

Absolutely, I would certainly label the market's current condition as a bullish one. Bitcoin has recently reached new all-time highs, and cryptocurrencies like Ethereum and Solana have also experienced substantial price movements. Overall, the market appears to be thriving and exhibiting very positive trends.

That said, there are altcoins that haven't performed quite as well as Bitcoin, but that’s largely due to the saturation of tokens available in today's market. There's noticeably more dilution of attention compared to three years ago when the ecosystem was less crowded. Currently, meme coins are a significant driving force attracting retail interest, similar to how NFTs captivated the spotlight back in 2021.

The present cycle we're witnessing with meme coins bears a striking resemblance to the trajectory NFTs took. During the NFT boom in 2021, Ethereum’s price surged to around $4,000. Subsequently, various NFT projects began launching meme coins to draw more users, and now, meme coins are starting to introduce NFTs to sustain this engagement cycle. It reflects the interconnectedness of this space, albeit with distinctive economic and cultural motivations fueling each surge.

Do you believe Bitcoin will reach $100,000 in the near future?

While I can't guarantee it will happen in the immediate future, I did forecast earlier this year that Bitcoin could touch $100,000 by the year's end, and it appears we might be on the cusp of that milestone. Of course, cryptocurrency markets are notoriously unpredictable, and fluctuations can occur, but I maintain faith that Bitcoin will reach that figure this year as the market dynamics unfold favorably.

What’s your view on the current wave of NFT adoption? Are they experiencing a resurgence, or are they still lurking in a quiet corner of the market?

Yat Siu Discusses the Transformative Impact of Web3 on Gaming, Digital Identities, and Future Ownership Models - Metaverse Post

Yat Siu, the visionary Co-founder and Executive Chairman of Animoca Brands, delves into the evolution of Web3, the hurdles in linking Web2 and Web3, and the strategic investments being made in sectors like gaming, NFTs, and decentralized tech.

Yat Siu Discusses the Transformative Impact of Web3 on Gaming, Digital Identities, and Future Ownership Models

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Published: November 28, 2024, 9:13 AM Updated: November 28, 2024, 9:13 AM

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Yat Siu, the innovative Co-founder and Executive Chairman of Animoca Brands, shares insights into the advancement of Web3, the difficulties faced in connecting Web2 with Web3, and the strategic ventures Animoca is pursuing in gaming, NFTs, and decentralized technologies to influence the industry's future.

, Co-founder and Executive Chairman of

, has been instrumental in shaping the Web3 landscape, initially stepping into the spotlight with CryptoKitties. This marked his gateway into the realm of NFTs and blockchain, which he swiftly understood could revolutionize gaming, digital ownership, and online identity. 

In this engaging interview, Yat articulates his views on Web3's expansion, the obstacles involved in bridging Web2 and Web3, and the strategic investments Animoca is undertaking in gaming, NFTs, and decentralized technologies, which are set to redefine the landscape of the industry.

My real introduction to Web3 was through CryptoKitties. At that time, our Vancouver studio played a significant role in developing CryptoKitties, where we first encountered NFTs. Back in 2017, NFTs hadn’t quite hit the mainstream yet. Collaborating with CryptoKitties was a transformative experience for us, marking our official entry into the Web3 domain. You could argue that it was through NFTs that we truly ventured into Web3.

Prior to that, I had always held a strong intellectual interest in Bitcoin and blockchain tech, but I wasn't an early believer or adopter. For instance, I didn’t hold Bitcoin early on, nor did we engage in the ICO boom of those years. Our foray into Web3 happened sometime after the ICO craze had started to wane. Nevertheless, we were captivated by the promise of decentralized systems and blockchain technology and quickly understood that Web3 would have lasting effects on gaming, ownership models, and digital identity.

Today, we are heavily invested in Web3, boasting a diverse portfolio that covers various projects in gaming, NFTs, and decentralized tech. While we may not hail from the original cohort of Bitcoin or Ethereum enthusiasts, we firmly believe in Web3's long-term potential to make waves across numerous industries. The journey has been enlightening, and it's been thrilling to partake in this groundbreaking space from its infancy to its current state.

In what ways has your background in Web2 gaming shaped your strategy for development in Web3?

My experience in Web2 gaming has played a significant role in shaping our approach to Web3 development. Coming from a gaming background has provided us with a robust comprehension of what contributes to the triumph of games and platforms, particularly from a user experience and design standpoint. A crucial insight we've gained is regarding user interface and design, which has been invaluable in easing the entry of Web2 users into the Web3 world.

We often receive kudos for our knack for breaking down Web3 concepts for Web2 users in a simplified manner. Navigating the complexities of Web3 can be daunting, especially for those accustomed to the traditional internet ecosystem. With our previous experiences in Web2 gaming, we’ve become adept at making these complex concepts digestible, effectively acting as translators or advocates for the Web3 paradigm.

Additionally, we've offered expertise to larger Web2 gaming firms exploring the integration of Web3 and blockchain technology. These enterprises frequently seek our guidance on how to navigate Web3 and what user acquisition strategies to consider. Our background in Web2 equips us uniquely for this, as we know how to construct businesses and foster user engagement in traditional realms, which we can now strategically apply to the Web3 ecosystem. For instance, while Web3 primarily focuses on incentives and airdrops for acquiring users, we comprehend traditional advertising and marketing tactics from Web2, which can synergistically enhance the Web3 approach.

Do you think it’s more effective to nurture a new generation of gamers born in Web3, or should we focus on helping Web2 gamers transition into Web3?

From what we've noticed, the majority of current gamers in Web3 are distinct from the traditional gamer profile. Many hail from emerging markets, particularly in the Philippines and Indonesia, where players are often motivated to engage in games that provide earning opportunities. These gamers contrast sharply with those enjoying mainstream Web2 titles like Minecraft, Roblox, or Fortnite; the games and incentives they pursue are altogether different.