Digital assets face ‘bumps on the road’ amid China-like growth, says super-reverse investor Yat Siu

FILE PHOTO: A dream public interactive digital art experience in New York
FILE PHOTO: People view non-fungible token (NFT) art at Dreamverse, a public digital art experience featuring NFT artworks and artists in the Manhattan borough of New York City , New York, USA, November 4, 2021. REUTERS / Carlo Allegri

December 1, 2021

By Elizabeth Howcroft

LONDON (Reuters) – Demand for digital assets will grow as online virtual worlds become more ubiquitous but investors face a number of short-term risks, said Yat Siu, president and co-founder. founder of Animoca Brands said during a Reuters panel on Wednesday.

In a blockchain-based virtual world environment, users can purchase virtual land and other digital assets such as clothes for avatars as crypto assets known as non-fungible tokens ( NFT).

NFTs exploded in popularity in 2021, with crypto enthusiasts speculating on the rapidly rising price. Last week, an NFT representing a piece of land in the virtual world sold for $2.4 million.

When asked if the rapid growth of the NFT and metaverse represents an asset price bubble, Animoca Brands’ Siu said that there will be “road bumps” but this holds true for all finance, not just NFTs and cryptocurrencies.

Hong Kong-based game company Animoca Brands invests and builds various virtual worlds, including Axie Infinity and The Sandbox, receiving a rebate from transactions made in the game.

“One way to describe the development of the metaverse is a bit like the development of China 30 years ago, in a more limited way,” Siu said during a metaverse panel at Reuters’ next conference.

“People may not understand it, but you can see the growth factors that make China work: population growth, industry growth, all that. Metaverse is equivalent. “

Still, he said, while investors looking at the long-term utility of the metaverse should be fine, they also need to be “vigilant” about possible problems.

“It’s good in the long run, but certainly in the short term, I think we have to know what we’re doing.”

NFT’s sales hit $10.7 billion in the third quarter, up more than eight times from the previous quarter.

To watch the next Reuters conference, please register here

(Reporting by Elizabeth Howcroft; additional reporting by Tom Westbrooke; Editing by Kim Coghill) Digital assets face ‘bumps on the road’ amid China-like growth, says super-reverse investor Yat Siu

Caroline Bleakley

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