Yat Siu, co-founder and executive chairman of Animoca Brands, recently provided a deep dive into the transformative potential of Web3 technology. Drawing from his extensive experience in tech innovation and his multicultural background, Siu shared invaluable insights during an interview with BeInCrypto. He highlighted how blockchain technology can fundamentally empower content creators by enabling them to have true ownership over their intellectual property.

Siu elaborated on Animoca’s Mocaverse, a groundbreaking initiative aimed at revolutionizing digital identity. He also pointed out the stark differences between Eastern and Western attitudes towards Web3 and offered sage advice for aspiring artists navigating the age of artificial intelligence.

While many tokens have struggled, notable exceptions like Bitcoin, Ethereum, Solana, TON, and even Animoca’s MOCA have shown resilience. The key differentiator, according to Siu, is institutional support. Projects backed by institutions tend to be more stable and reliable. He argued that with the advent of Bitcoin ETFs, we are entering an institutional era of cryptocurrency, where institutional support is essential for standing out.

Siu compared the traditional stock market, which is predominantly institutional, to the token market, which is largely retail-driven. In an institutional market, thorough research is crucial because of the significant purchasing power and long-term planning involved. Retail investors, on the other hand, often exhibit short-term behavior. For example, Pump.fun launched two million tokens in the past six months—a business model that is both impressive and concerning due to its speculative nature. Institutions are unlikely to invest in such ventures due to their disciplined approach.

Siu also touched on geopolitical factors influencing blockchain adoption. Despite President Xi Jinping’s endorsement of blockchain technology, he cautioned against assuming that China would allow Bitcoin trading. Hong Kong, however, serves as a financial clearing house for international capital and has become pro-Web3 and pro-crypto, acting as a sandbox for China. Chinese capital prefers Hong Kong over other jurisdictions like Singapore due to its free-market status under China’s influence.

The cultural divide between East and West also extends to economic philosophies. Asia leans more towards capitalism, even within China, where capitalist principles coexist with the Communist Party’s governance. This contrasts with Europe and younger Americans, who often exhibit skepticism towards capitalism. This cultural inclination makes Asian gamers more comfortable with monetizing their assets, fueling the growth of DeFi and GameFi in the region.

Siu expressed pride in the success of Black Myth: Wukong, a Chinese game that has gained global acclaim. He acknowledged that this success was built on the cultural foundations laid by Japan and Korea. Japanese anime paved the way for K-pop and K-drama, which in turn set the stage for Chinese cultural exports like Wukong.

He emphasized the importance of owning intellectual property for creative professionals. Historical examples like Michael Jackson illustrate how owning IP can lead to substantial asset growth. However, Siu pointed out that current educational systems fail to teach essential financial and business skills, making it difficult for individuals to maintain independence if they outsource their value creation.

In Web2, platforms like YouTube, Instagram, and TikTok often exploit creators by taking ownership of their content’s IP. Early YouTube trends like mukbangs saw creators lose their IP to the platform despite gaining fame. Similarly, Instagram users spend significant time perfecting their photos but receive no compensation for their work. Even viral TikTok videos yield little to no financial reward for creators.

In contrast, Web3 technology allows creators to mint their content as NFTs, providing a verifiable history and record of ownership on the blockchain. This not only helps in defending against theft but also ensures that creators can claim ownership and potentially monetize their work.

The crypto industry has seen significant growth over the past year, with numerous launches and increased participation. Animoca Brands is particularly excited about projects like TON and Mocaverse. The TON ecosystem has successfully onboarded many users into Web3, with games like Gamee attracting 90 million users. Mocaverse aims to solve digital identity issues by ensuring that tokens are distributed more equitably and not concentrated among bots or a few individuals.

Through these initiatives, Siu envisions a future where blockchain technology empowers individuals by giving them control over their digital assets and identities.