Businesshala NEXT: Digital assets face ‘bumps in the road’ amid China-like growth, metaverse investor Yat Siu says

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LONDON, Dec 1 (Businesshala) – Demand for digital assets is set to increase as the online virtual world becomes more popular, but investors face some short-term risks, said Yat Siu, president and co-founder of Animoca Brands. said in a Businesshala panel on Wednesday.

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In a blockchain-based virtual world environment, users can purchase clothing for avatars such as virtual lands and other digital assets in the form of a crypto asset called a non-fungible token (NFT).

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

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When asked whether the rapid growth of NFTs and the metaverse represents an asset price bubble, Animoca Brands’ Siu said that there will be a “bump in the road” but that it is not just for NFTs and cryptocurrencies, but all finance. true for.

Hong Kong-based gaming company Animoca Brands invests in various virtual worlds including Axie Infinity and The Sandbox and takes a cut of revenue from transactions made within games.

“One way to describe the evolution of the Metaverse is in a slightly more limited fashion, like China’s development 30 years ago,” Siu said in a panel on the Metaverse at the Businesshala Next conference.

“People might not understand it but you can see the growth factors that work China: population growth, industry growth, all kinds of things. The metaverse is equal.”

But, he said, while investors with a long-term view on the usefulness of the metaverse would be fine, they also need to be “cautious” about potential issues.

“Long term is good, but short term certainly I think we need to know what we are doing.”

NFT sales reached $10.7 billion in the third quarter, up eight times from the previous quarter.

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Reporting by Elizabeth Hawkroft; Additional reporting by Tom Westbrook; Editing by Kim Coghill

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