Yat Siu, Animoca Brands' co-founder and executive chairman, has much to say about the metaverse. This is because his organization owns The Sandbox and has interests in various web3 startups, including OpenSea, Dapper Labs, and Axie Infinity. He discussed Meta's perspective on the metaverse at TechCrunch Disrupt.
In his statement, Yat Siu said, “They've said they'll invest $10 billion yearly to make the metaverse operate. Here's the thing: $10 billion is insufficient for Facebook to thrive. Billions of dollars are exchanged in the open metaverse environment – much more when fungible tokens are included. Because most of the value flows to the end user, why would I transact on something like Meta — regardless of its graphics — when I have to give the platform half of it?
I get 95% of it when I utilise Sandbox. Economically, it does not make sense for me to do so. And, given that billion of dollars of value are created openly, why would I give that value up? As a result, Facebook would have to spend a lot more money to get individuals to use its platform.
However, this does not imply that Zuckerberg is the wrong person to lead this initiative. I argue that Zuckerberg did get it right in terms of structure. Remember how he attempted to put out Libra?... So he knows about blockchain."
What Exactly Is The Metaverse?
But what precisely is the metaverse? Many people are still fighting over it. Some believe it is an online world, while others believe it is virtual reality. According to Yat Siu, property rights are the most important aspect of a real metaverse.
We share George Washington's view that "you cannot have freedom without property rights," and we think the same about the digital realm. Digital property rights are inherently at odds with the concept of digital freedom. So, in our opinion, the open metaverse must begin with a basis of ownership.
Animoca Brands dwarf the Sandbox. The group and portfolio include 380 firms. Thirty of them are affiliates. Animoca Brands is a technically Australian corporation with a Hong Kong headquarters and roughly a thousand staff.
The approach of Animoca Brands is simple to summarise. Because of the substantial network effects, the corporation is investing in the web3 ecosystem. It is banking on a rising tide of web3 that will raise all boats.
The economic activity associated with vehicle ownership, Yat Siu said, is far greater than car sales itself. He mentioned businesses that do not sell cars, such as ridesharing services, vehicle washes, and his own, Uber.
When they first invested in OpenSea in 2018-2019, when the company was worth very little, it wasn't because they expected it to become a decacorn, he said. OpenSea seemed to have a lot of NFT operations and a large NFT volume, so we figured if we helped push that, along with our NFT sales and the NFT sales of any companies we invested in, it would be a win-win.
That is to say, if web3 becomes a major thing, it's clear that Animoca Brands would play a significant role in it.
Featured image: Meta
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