Cryptocurrency is back in the spotlight. Bitcoin has surged to a historic high of $111,814, Coinbase became the first crypto company to join the S&P 500, and an increasing number of crypto firms are exploring public listings. Among them is Animoca Brands—a Hong Kong-based Web3 giant with stakes traded in private markets, spanning NFT gaming, blockchain investments (with a portfolio of 500+ companies), and beyond.
Once delisted from the Australian Securities Exchange in 2020 due to crypto-related controversies, Animoca saw its valuation skyrocket from $100 million to $5.9 billion by 2022. However, public attention waned during the crypto winter, NFT market crashes, and subsequent memecoin frenzy. Compounding this was the underwhelming traction of GameFi, despite the global gaming industry being valued at $180 billion (Oppenheimer & Co. estimates).
Under CEO Yat Siu, Animoca has pivoted to profitability, reporting $97 million in unaudited profits for last year—a 185% YoY increase. Now, amid a pro-crypto U.S. political climate, Animoca is eyeing a Nasdaq or NYSE listing. Siu remarks: "The U.S. could dominate the crypto market—it’d be foolish not to engage." Yet he clarifies that an IPO is just one option under exploration.
Challenges in the Gaming Industry
While tariffs under recent U.S. administrations had minimal impact on gaming, the sector remains vulnerable to macroeconomic shifts. Martin Yang, Senior Analyst at Oppenheimer, notes:
"Growth has slowed to 3–6% annually post-pandemic, far from its COVID-era peak."
Mobile gaming—GameFi’s primary arena—faces starker headwinds. Despite freemium models and low entry barriers, The Benchmark Company’s Mike Hickey observes:
"This market is fragile. Major studios like Zynga consolidated, and layoffs abound."
Crypto gaming’s struggles are magnified by Ethereum’s declining metrics (transaction volumes, active users)—a bellwether for GameFi’s health.
Animoca’s B2B Strategy: Liquidity Engine for GameFi
Animoca’s secret? Becoming GameFi’s liquidity backbone. Siu explains:
"We provide OTC desks and capital markets support—safer than launching games in a crowded field."
In 2024, its digital asset advisory revenue grew 114%, offsetting a 39.5% dip in Web3 operations. The result? Soaring profits despite GameFi’s slump.
Key Question: Can this sustain?
- DEX volumes (true demand indicators) for GameFi tokens trend downward across Ethereum, Polygon, and BNB Chain.
- Animoca’s role in these trades remains opaque—a blind spot for investors.
The Road Ahead: Regulatory Hurdles and Playability
Siu pins hopes on U.S. policy shifts:
"Current ambiguity keeps giants like EA Sports on the sidelines. Clearer rules could unlock institutional participation."
Yet, player skepticism persists. Hickey warns:
"Monetization schemes that don’t enhance gameplay repel users."
FAQ Section
Q1: Why is Animoca considering a U.S. IPO?
A: To tap into the world’s largest crypto market and boost institutional credibility.
Q2: What’s driving Animoca’s recent profitability?
A: B2B services (e.g., market-making) now outpace direct Web3 ventures.
Q3: Can GameFi recover its 2021–2022 hype?
A: Only with improved gameplay and regulatory clarity, per industry analysts.