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- Siu recently detailed the company’s position at the annual NFT Paris conference.
- As per Siu, there is insufficient capital within the system to support enhancements for new projects.
Yat Siu, co-founder of Animoca Brands, a gaming enterprise, has suggested that royalties have played a crucial role in the growth of the non-fungible token (NFT) market. These advancements were made possible because royalties were a viable concept according to Siu.
Siu, who co-founded the Hong Kong-based company, mentioned that the firm’s NFT licenses were established to provide digital creators with a legitimate way to protect their rights to royalties.
Industry Would Go Backward
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He recently detailed the company’s position at the annual NFT Paris conference, emphasizing the importance of creative rights and revenue streams within the Web3 ecosystem. Despite the market downturn for a significant portion of 2022, the NFT sector still managed to achieve nearly $24 billion in sales.
Siu remarked:
“That means that billions of dollars went to creators but, more importantly, an even larger number went to owners of the assets of these entities that fueled an industry that made it possible to create companies like Blur, OpenSea or Magic Eden.”
Siu indicated that without the collection of royalties, there is not enough capital in the system to support new project advancements. He asserted that the industry would regress if royalties were to be removed.
The company’s attention has turned towards the MENA (Middle East and North Africa) region in search of the next OpenSea. He noted that the company has recently invested in Nuqtah, the first legal NFT marketplace in Saudi Arabia.
Siu stated that significant market players, such as Japan, have regional NFT participants. However, he pointed out that the MENA region has yet to establish a prominent player. According to Siu, Animoca Brands is backing Nuqtah to help stimulate the development of the NFT infrastructure in Saudi Arabia.
