According to Yat Siu, the CEO of Animoca Brands, the crypto industry is experiencing contrasting conditions in different parts of the world.
While Web3 startups are thriving in the Middle East and Asia, crypto entrepreneurs in North America are facing challenges due to tough macroeconomic and regulatory circumstances.
Siu shared his insights with Cointelegraph during the Collision conference in Toronto, emphasizing that the situation is not as dire as it may seem.
Siu acknowledged that Web3 startups can still secure funding from venture firms, but he pointed out that current conditions, such as higher interest rates and a decline in crypto asset prices, have raised the entry barrier for newcomers.
Despite these challenges, Siu remains optimistic, stating that the number of builders and smart contracts in the space continues to increase.
He also highlighted that Animoca Brands had made nearly 60 investments in the past few months, underscoring their bullish stance.
However, the overall strength of the crypto industry has diminished compared to its past performance.
According to the PitchBook Crypto Report for Q1 2023, crypto companies raised $2.6 billion across 353 investment rounds, representing a decrease of 11% and 12.2% in deal values and total deal value, respectively.
Siu’s comments follow significant developments in the crypto space, including the collapse of FTX in November 2022.
In the United States, the Securities and Exchange Commission has launched a crackdown on crypto firms, aiming to regulate the industry through enforcement actions.
In contrast, Hong Kong and the United Kingdom have implemented licensing systems and approved legislation to regulate crypto businesses and mitigate associated risks.
Siu noted that the regulatory aspect has had a significant impact on Web3 companies, generating fear and uncertainty among market participants.
He highlighted the contrasting environments between North America and regions like the Middle East and Asia, where the crypto industry remains vibrant.
Siu believes that these different approaches reflect each country’s agenda for emerging technology.
According to Siu, the diverse regulatory landscapes are not coincidental but rather deliberate decisions based on national interests.
He believes that by relinquishing control of the crypto industry to other parts of the world, the United States is enabling the flourishing of ecosystems that were previously constrained.
While Siu acknowledges the importance of the U.S. in the crypto space, he believes that political reasons have compelled the country to cede its role to other global players.
Overall, Siu’s observations shed light on the varying conditions faced by crypto entrepreneurs worldwide, highlighting the challenges in North America and the opportunities in the Middle East and Asia.
Despite regulatory hurdles, Siu remains optimistic about the continued growth of the crypto industry and the emergence of thriving ecosystems around the world.
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