2025: The Year Crypto Enters the Mainstream, According to Animoca Brands' Yat Siu

Having spent a decade investing in crypto, Yat Siu has witnessed significant developments in the industry. As the co-founder of Animoca Brands, a prominent venture studio and game developer in Web3 culture, Siu's company has grown substantially, with the market cap of tokens issued by its portfolio companies exceeding $45 billion, according to CoinGecko. Despite facing challenges during the 2022-23 crypto winter, with many tokens from Animoca's companies experiencing a nearly 90% decline, the company has bounced back. The surge in bitcoin's price in 2024, the upcoming pro-crypto presidency in the US, and Animoca's recent expansion of its office space in Hong Kong signal a positive shift. Siu draws parallels between the current state of crypto and the internet's transformation of business in the 1990s. He recalls how Hong Kong's garment industry relied on physical sample shipments for client inspections, a process that was time-consuming and costly. Siu's solution, utilizing one of the first broadband internet service providers, enabled garment factories to send high-resolution scans to clients, streamlining the process and reducing costs. Siu believes that stablecoins will have a similar impact, facilitating commerce and trade by providing 'crypto rails.' He predicts that traditional financial institutions will adopt stablecoins, making them indispensable for transactions. The use of stablecoins is already prevalent in supply chain finance in Asia, particularly in the fashion industry, where it has reduced margins and made wire transfers less practical. Siu sees 2025 as the year crypto will experience mass adoption, driven by the growing importance of stablecoins, the expansion of memecoins into blockchain ecosystems, and the evolution of NFTs into integral parts of these ecosystems. He expects memecoins to launch their own L1s or L2s, building communities and ecosystems that capture attention and create narratives beyond financial speculation. NFT projects will shift from standalone assets to essential components of broader ecosystems, creating cultural and symbolic value. For sustained success, memecoins and NFTs must evolve into platforms where communities build games, applications, and experiences, rather than merely speculation. Siu remains optimistic about crypto gaming, viewing it as a powerful entry point for Web3, where culture, community, and ownership converge. He believes that gaming will create a network effect, with games becoming fun and engaging, and the added benefits of ownership and trading will be a bonus. The focus should be on building a game that Web2 gamers will enjoy, without distinguishing between Web2 and Web3. Siu also emphasizes the importance of reputation in the crypto economy, citing Animoca's Moca ID as a decentralized method of identification that allows for the measurement of reputation. This, in turn, will enable services like unsecured crypto loans, marking a significant shift from the current system of over-collateralized loans. As a venture capitalist, Siu seeks returns, but he is also a strong advocate for capitalism and its benefits. He believes that Web3 can create a more inclusive and participatory form of capitalism, turning users into stakeholders and co-owners. Siu urges the industry to focus on the transformative potential of blockchain, rather than short-term profits, and to remind themselves of the bigger picture they are helping to build.