Tariffs will push people deeper into digital worlds, says Animoca co-founder

With the wrapping up of TOKEN2049 Dubai, one thing was clear that Web3’s next chapter is imminent. In an interview with Cryptopolitan, Animoca Brands co-founder Yat Siu laid out how digital property rights, AI agents, and decentralized identities will shape the internet’s future and why the next crypto cycle is about more than just price action.

If you think Animoca Brands is just a gaming company or a venture capital firm, you’re not thinking big enough. According to Yat Siu, Animoca’s true identity is as an ecosystem builder, one on a mission to make digital property rights a global standard.

“Basically, if you think of us as an ecosystem builder, our mission is to make digital property rights standard in the world,” Siu explains. “We do this through gaming. We also do some investments. But if you want to make the whole world accept digital property, you can’t do it alone.”

Animoca bets on gaming tokens revival

Since its entrance into the blockchain space in 2017, Animoca has deployed capital into over 570 projects, with more than 165 of those directly tied to gaming. When asked why Animoca has invested so broadly, from games to infrastructure, Siu emphasized that the company is not a traditional VC. 

“All of our investments come from our balance sheet. We don’t run a fund. It’s more like how Apple should be operating,” he explained. “Apple has $300 billion in cash. Do they have a VC fund? No. Should they? Yes, If they put even 1% of that into building apps for the App Store, they would build a bigger ecosystem.”

What was the spark that ignited Animoca’s Web3 gaming ambitions? We asked. He highlighted that it was CryptoKitties, the collectible cat NFTs that first hinted at a programmable, ownable internet in 2017. Siu compares it to the early mobile gaming boom. “It wasn’t really a game. It was NFTs you could breed. Was it a great game? No. But it was the moment we understood this was big.”

Even after hundreds of investments, not everything has gone smoothly. Siu acknowledges some missteps, especially during crypto bear markets. Token launches—such as Gunzilla’s Off The Grid and other projects—underwhelmed, often because of macro conditions rather than product quality. “Gaming macro was bad. All gaming tokens were doing badly,” Siu notes. Still, he remains optimistic.

He believes gaming and metaverse tokens like SAND (from Animoca-backed The Sandbox) are primed for a strong comeback by the end of the year, driven by renewed mainstream attention thanks to events like GTA VI’s release and new Nintendo hardware. “We believe existing gaming projects that are already listed have an opportunity because they’re underpriced. They’re currently priced relative to utility, not sentiment.”

Mocaverse is Animoca’s next big play

As bullish as he is on gaming, Siu is placing major bets on two less-hyped areas: digital identity and education. He sees digital identity, specifically Animoca’s Mocaverse project as crucial to building a robust, reputation-based Web3 economy. “Digital identity with multiples is a huge bet we’re taking. We think it’ll create a mass market in terms of digital reputation and make a huge impact.”

He also sees education as fertile ground for Web3 applications, though details on Animoca’s approach remain under wraps.

Meanwhile, the rise of AI has only strengthened his thesis. Far from a threat, Siu sees AI as a catalyst for Web3 mass adoption. “Your wallet won’t be MetaMask. It’ll be an AI agent that does MetaMask for you, the kind of wallet I can give my grandma,” he says. AI will also unlock explosive growth in user-generated content, composable NFTs, and autonomous agents transacting in crypto. “The native currency of AI agents is crypto. It’s nothing else.”

Despite all the futuristic visions, Siu remains grounded in gaming culture. A self-professed first-person shooter fan, he acknowledges the massive appeal of hyper-casual and idle games but doesn’t view them as competition in the traditional sense. “The competitor of idle games isn’t other games, it’s TikTok. It’s all about attention,” he said.

For Siu, the magic of gaming lies in its cultural universality, whether it’s Prince of Persia sparking curiosity about Persia or modern Chinese games finding global audiences. “Gaming is culture. You have to hit something that fits into the cultural narrative.”

Tariffs won’t stop gaming, they’re borderless

Turning to geopolitics, when asked about the impact of rising US-China tariffs and trade tensions, Siu offered a surprising take. “Tariffs are positive for digital industries. If people can’t buy goods as easily, they turn to entertainment and games, and remember, there’s no tariff on software or Bitcoin,” he noted.

As physical goods become pricier, Siu expects people to spend more time in digital spaces, where tariffs don’t apply. “Games are neutral, I can play Fortnite, The Sandbox, or Axie Infinity without worrying about tariffs,” he said. Even when it comes to crypto, the borderless nature of digital assets stands out. “If I send you Bitcoin from China, there’s no tariff on that,” Siu added.

Wrapping up the conversation, I asked Yat Siu whether he believes most gaming-related tokens are fundamentally overvalued. His response was clear: “No, I think they’re fundamentally undervalued.” Siu explained that gaming tokens reflect much more than just current speculation, they mirror the broader macro trends within the digital economy. 

“If we believe, as we do, that gaming’s role in the global economy will grow by the end of the year, then these tokens are undervalued,” he said confidently.

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