Crypto VC is struggling only from a North American perspective — Animoca Brands CEO

Would You like a feature Interview?

All Interviews are 100% FREE of Charge

According to Animoca Brands CEO Yat Siu, the crypto industry is in an uneven state around the world, with Web3 startups flourishing in the Middle East and Asia, while North American crypto entrepreneurs It faces challenges under tough macroeconomic and regulatory conditions, he said.

In an interview with Cointelegraph at the Collision Conference in Toronto, Siu highlighted key differences in the crypto business landscape around the world, stressing that “it’s not as bad as you think.”

He said Web3 startups can still raise venture capital, but the current situation, including rising global interest rates and falling cryptocurrency prices, raises the bar for new entrants.

“Valuations are clearly down, but the number of builders entering the space, the number of smart contracts being deployed, and the population are still growing. All in all, we are very bullish,” he said. Animoka added: has added nearly 60 investments to his portfolio in the past few months.

Despite being active, Space isn’t as strong as it used to be. According to his recent PitchBook Q1 2023 crypto report, cryptocurrency companies have raised his $2.6 billion in 353 investment rounds. Deal value was down 11% quarter-on-quarter and deal value was down 12.2%.

Siu’s comments come on the heels of major developments affecting the cryptocurrency industry since FTX’s dramatic collapse in November 2022. For example, in the United States, the Securities and Exchange Commission has started cracking down on cryptocurrency companies in an attempt to regulate the industry through enforcement action. .

In contrast, Hong Kong introduced a licensing regime for crypto businesses to mitigate the risks associated with the digital asset market. The UK has taken a similar approach, approving a bill giving regulators the power to introduce and enforce regulations on cryptocurrency businesses.

“If you look at it from a North American perspective, [about crypto VC], may not be the right way to say it. “When you go to the Middle East or Asia, it’s actually very lively,” said Siu. According to the CEO, the regulatory aspect has been a “blow” for his Web3 company. “It causes a lot of fear because people don’t know what’s going on,” he continued.

A veteran crypto entrepreneur, he doesn’t believe in coincidences when it comes to countries taking different approaches to the industry. For Siu, the favorable environment of Asian nations and hostile moves by the United States are part of the country’s challenge to emerging technologies.

“Pushing Web3 as a narrative is also about national interest above all else, the interest of end users to their self-sovereign identities. And America does everyone a favor. But sadly, in this So I think the United States is important, […] For political reasons, they have left that role in the hands of other parts of the world. But the exciting aspect is that this will allow ecosystems to thrive in ways that were previously impossible. “

A Guide To Crypto Cities To Sydney: More Than Just A ‘Token’ Bridge