Kategorie: Crypto News

• An explosion in demand for NFTs and growth in the metaverse sector has seen digital assets such as Axie Infinity (AXS), Decentraland (MANA), and The Sandbox (SAND) soar.

• Animoca Brands’ Yat Siu says the sector has seen “China-like growth” but believes investors must brace for a short term slowdown

Yat Siu, the co-founder and chairman of Hong Kong-based gaming firm Animoca Brands, says the digital asset space is facing potential “bumbs in the road” following an explosive growth trajectory over the past year.

Siu says there’s still a lot of demand for assets in the non-fungible token (NFT) and metaverse sectors, with investors eyeing gains likely attracted by recent profits for some of the leading digital assets linked to virtual worlds.

But while he thinks the industry remains locked on long-term growth, the outlook in the short term might not be so great for investors.

Speaking at a Reuters panel on the metaverse on 30 October, the Animoca Brands chairman noted that it’s not just crypto or the NFT space that faces a tricky outlook in the short term. According to him, the forecast that markets are likely to hit rough terrain also applies to the broader financial market.

Siu compares the growth within the metaverse space to China’s explosive economic growth over the past 30 years.

He says people might not see the comparison, but all the factors that supported that kind of growth are there. In this, he points to increased demand as compared to China’s population growth, and broader adoption across crypto to the rapid industrial expansion in the country.

Siu says that long term, investors are likely to be fine but would need to take a cautious approach short term.

“The metaverse is the equivalent [comparable to China’s growth],“ he said at the Reuters Next Conference.

Data from CoinGecko shows that the total NFT market cap currently stands around $66.8 billion, with the valuation seeing a 1.3% downside over the past 24 hours. The metaverse sector has a market cap of $36 billion, about 3% down on the day.

But despite the slowdown, NFTs and metaverse linked tokens have had a staggering 2021, with mega price moves for tokens like Axie Infinity, Decentraland, and The Sandbox. 

NFTs sales have fetched crazy prices in the marketplace too, hitting over $10 billion in the third quarter alone. The space is expected to grow even further as creations and virtual property continue to sell for millions of dollars.

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Changpeng Zhao says challenges such as currency devaluation, difficulty in making cross-border payments and remittances, and the need for financial freedom are driving crypto adoption in Africa.

As the world’s largest cryptocurrency exchange by trading volume, Binance has continued to attract customers from across Africa, one of the fastest-growing destinations for crypto adoption.

Binance CEO Changpeng Zhao has reiterated that Africa offers unique opportunities, not just for the adoption of cryptocurrencies, but also for broader development of the industry.

Why Binance is bullish on Africa

The Binance chief’s comments in an interview with TechCrunch also revealed why the exchange remains bullish on the continent.

According to Zhao, Africa offers inimitable opportunities and is ripe for crypto adoption. He notes that crypto’s capacity to help solve problems related to cross-border payments and money transfer is seeing more and more people look to buy and use cryptocurrencies.

The number of the unbanked across the continent is also quite big, Zhao added, a fact that provides an opportunity for crypto adoption opportunities. Meanwhile, high unemployment has seen African youths venture into crypto and blockchain projects.

Asked to explain what could be fueling crypto adoption on the continent, Zhao said:

“I think it’s always a combination of many things,” before he went on to explain some of the catalysts towards broader adoption.

Changpeng on what’s fueling crypto adoption in Africa

The Binance boss, one of the most prominent personalities in crypto, believes that challenges such as currency devaluation have contributed to the rising adoption of crypto assets and stablecoins. Many people thus see cryptocurrencies as providing a better hedge against spiraling inflation.

Difficulties in making cross-border payments, or remittances, are another reason crypto is proving attractive to many Africans. Users do not just get to easily send money from abroad or across the continent but to also do so faster and at very low costs.

That’s not all. The need for financial freedom is seeing many people put their money into cryptocurrency investments, Zhao added.

“Much like Southeast Asia and Latin America, millions of people [in Africa] live below the poverty line. So it’s natural that they are interested in innovative, non-traditional ways of wealth creation.”

CZ, as he is known in the crypto space, recently said crypto needed proper regulation, adding that this will help the crypto industry build trust as it moves towards mass adoption. He also holds that effective regulation of the crypto sector in Africa will be critical to protecting consumers as well as spurring further growth.

Zhao also talked about some of the crypto and blockchain projects that could be greatly transformative for Africa. He believes infrastructure and systems in the sectors of GameFi, Sports Fan Tokens, and non-fungible tokens (NFTs) will play a huge role in transforming lives and offering financial freedom to many.

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• Meta Platforms (formerly Facebook) appears to have injected interest in the concept
• He notes that almost every facet of life today is going digital
• Gaming and big technology firms like Google, Apple, and Microsoft could see major gains tied to the Metaverse

We have seen several cryptocurrencies linked to the increasingly interesting Metaverse space make huge gains in recent weeks. Projects such as The Sandbox (SAND), Decentraland (MANA), and Enjin Coin (ENJ) have witnessed an upside driven by investor interest in the concept of a Metaverse.

Crypto and blockchain projects could be among those to benefit massively from the idea, but according to DBS senior investment strategist Daryl Ho, investors could do well to look at two key sectors likely to play a big role as the initiative takes shape.

In an interview with CNBC’s “Squawk Box,” Ho said that companies and platforms that are already deep in the digitisation space could have the front seat when it comes to defining the Metaverse and thus benefitting the most.

 “If you don’t already realize it, we are already moving somewhat towards a digital world, so the Metaverse is simply the next step, the next frontier,” Ho explained.

Meta leads other Big Tech companies in plans for a Metaverse

Recently, Meta Platforms (formerly Facebook), took a giant step in announcing plans for developing the Metaverse, and major companies around the world are looking to follow suit as the reality of a virtual world grows.

It’s with this perspective that the investment strategist says two particular sectors could take the lead and be highly profitable to investors.

He believes the computer gaming industry has the upper hand here, given the sector is already immersed in the virtual world. Notably, it’s in the Metaverse would see people live, work and collaborate and gaming platforms have represented this in many ways in their gaming projects.

“I think these are the companies [investors] should look out for,” he said, adding that the sector is likely to be the one that “shape[s] the metaverse as we know it.”

Ho also believes that big technology companies have all it takes to maintain a leading role in the Metaverse and will be big beneficiaries.

Apart from Meta, other Big Tech companies to watch out for are Google, Apple, Microsoft and game company Valve.

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