David Edwards
Yat Siu, the founder of Animoca Brands, is of the opinion that non-fungible tokens (NFTs) are not being fully utilized and could play a significant role in the realm of digital capitalism, potentially transforming various sectors such as rights management and education.
According to Siu, the current lower valuations of NFTs suggest a healthier level of interest in the technology’s practical applications, which could have a pivotal role in tackling global financial inequality and promoting financial literacy.
He emphasizes the need for legal frameworks, especially in the United States, to evolve in order to fully support this vision.
In a recent interview with CoinDesk, Siu expressed his belief that we have only scratched the surface of the potential utility of NFTs. NFTs grant users ownership of digital or physical assets. While these tokens experienced a surge in value during the 2021 bull market followed by a decline, there have been notable positive market movements, such as the Grails NFT collection selling at Sotheby’s for more than double the expected price and NFTs surpassing ether’s gains in January.
Siu underscores the importance of establishing proper digital ownership on the blockchain, which could disrupt the multi-billion dollar industry of rights management and content delivery, affecting areas ranging from education to gaming.
He suggests that NFTs could revolutionize the delivery of educational content, offering significant financial opportunities, particularly in less affluent regions. Siu mentions TinyTap, an edtech company acquired by Animoca Brands in 2022, where teachers can monetize their content, circumventing traditional barriers like publishing houses, which may act as mere middlemen. Although the numbers are currently small, this could potentially become a substantial source of passive income for individuals in regions with fewer resources.
Siu argues that the compression of NFT valuations compared to their peak during the bull market is not necessarily negative, as it indicates a shift away from speculative interest towards genuine technological interest, thereby strengthening the foundation of NFTs.
He asserts that the essence of NFTs lies in digital ownership and the opportunity they offer for anyone to earn and generate income, presenting a solution to financial inequality and laying the groundwork for a financially literate society.
Siu points out that in Asia, NFTs and blockchain technology are embraced as extensions of digital capitalism, emphasizing the interconnectedness between democracy and capitalism. He warns that a lack of understanding of capitalism poses a significant threat and believes that education is crucial in addressing misconceptions surrounding money.
Siu highlights a contrast in the United States, where there is resistance to the idea of digital capitalism. He attributes this disparity to emotional reactions towards the monetary aspects of NFTs, reflecting broader sentiments about money in the real world, underscoring the necessity of education in reshaping these perceptions.
