The hype surrounding the potential launch of a spot Bitcoin exchange-traded fund (ETF) is not only driving up the price of Bitcoin but has also reignited enthusiasm in the crypto gaming sector, according to Animoca Brands co-founder and executive chairman Yat Siu.
In comments given on the sidelines of Hong Kong Fintech Week to Cointelegraph, Siu highlighted that the recent price gains seen in the crypto market have boosted confidence in the Web3 gaming market, sometimes referred to as GameFi.
He added that the price boost already has led to a surge in on-chain activity related to blockchain games.
Busy @animocabrands fam & frens booth including @TheSandboxGame @MocaverseNFT @WreckLeagueHQ @the_phantom_g @AnichessGame and more at #HKFintechWeek2023 Hong Kong is clearly determined to becoming the #web3 hub! pic.twitter.com/6spuYH7Jhy
— Yat Siu (@ysiu) November 3, 2023
In his comments, Siu emphasized the importance of token values as a means to build confidence in the utility of blockchain gaming and added that it’s not just about acquiring money, but feeling secure about ownership.
Investor confidence is multifaceted, Siu explained, and can’t be reduced to a single metric. Instead, it should encompass various factors, much like assessing a country’s economy through different indicators.
Crypto remains reliant on Bitcoin
Meanwhile, Siu also pointed out that the entire crypto ecosystem is still reliant on Bitcoin’s growth.
He said he sees Bitcoin as the reserve currency of Web3, comparing it to gold in a traditional gold standard-based economy.
As such, Bitcoin’s usage, storage, and ownership underpin much of the value in the crypto market, Siu said.
According to the Animoca co-founder, the approval of a spot Bitcoin ETF will greatly benefit the crypto industry by bringing legitimacy and drawing traditional financial institutions into the sector.
Despite this, Siu admitted that he envisions a future where the crypto sector will eventually move away its reliance on Bitcoin, paralleling the way the economies in the physical world moved away from the gold standard and to its current fiat standard.
It’s “just a matter of maturity in the market” before it happens, Siu was quoted as saying.
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