Animoca Brand, a renowned Web3 company with an office in Hong Kong, has just announced its significant holdings in digital assets. The company’s unaudited financial report has shown that the total digital assets being held currently amount to $558 million, out of which $291 million has been deposited in the form of cash and stablecoins as on-balance sheet assets.
The company has been a wide investor since December 2013: in digital assets, the total sum of money it invested in any way up to now amounts to $266 million. Eliminating the assets held by its subsidiaries which stand just below the balance sheet, Token reserves held account to $1.8 billion of the company’s off-balance sheet. Among the $1.3 billion highly liquid tokens and the $542 million less liquid tokens. This also shows that there are more highly liquid tokens when compared to less liquid tokens.
However, it’s crucial to account that this data does not consider the value of Animoca Brands’ portfolio of minority stakes in other Web3 companies whose valuations are in progress.
Consistent with the constant fluctuations in different cryptocurrency markets, Animoca Brands still has faith in its capacity. The fantastic lockdown in the market on the background of the growth of Bitcoin into an all-time high price is now showing a better perspective of the company as a crypto investment. Apart from that, it is worth noting that Web3 gaming plays an important role in providing a chance for Animoca Brands to seriously develop and expand its market and operation.
In March, during the crypto slump, Animoca Brands changed the target of Animoca Capital in its strategy for good growth and value, which reduced from $2 billion to $800 million. As such adjustment came after the previous cutdown from $1 billion to $ 800 million, an overall reduction of 60 percent in respect of the original target fund.
Over time, the crypto market constantly keeps changing; therefore, Animoca Brands is unable to just sit around idly, watching the developmental dynamic, but leverages on its sizeable holdings and investments in Web-3 projects to get the most out of the space.
Can Web3 Survive Its Own Fans? Examining a Community in Conflict
Web 3, which takes for granted the decentralized technology and cryptocurrency, has been praised as the stop of advancement of the internet. Yet, with its faithful users, there is this curiosity about whether Web3’s plans are doomed.
While a lot are referring to the crypto publicity as proof of Web3’s greatness, the truth is more complex. However, even though more than 90% of people maybe heard of crypto, it has turned out that only 8% actually got a firm grasp on Web3. Hence the industry faces a significant problem in existing disconnection between knowledge and understanding.
The forecasts suggest that Web3 could be used by 1 billion users by 2031 but that this criterion depends on removing the main hurdles. Many but not all Web3 development happens because of the speculative rather than genuine adoption of crypto. So the people who form the Web3 community are somehow liable.
In the beginning, the excitement around the Web3 community began to fade into certain elitism, with emphasis on technical discussions which, in turn, scares newbies. Instead of promoting easy use and usability, the community often prefers sophisticated technical concepts that succeed in confusing the ordinary person.
Altogether, the community’s focus on anonymity and invitational events will hurt enrolment numbers. Security and trust issues are also a doubt among how most ordinary people would accept the Web3 technology.
For real acceptance, the Web3 community should change its direction from innovative to acceptance. Instead of discovering new technologies only for the pursuit of the new, we should concentrate on product alternatives, which are centered on solving real-world problems.
Working with accounts like Visa and Mastercard which already exist in the forefront of the financial world is a tool for incorporating Web3 things into the existing systems. Collaborating with governments and introducing them to the Web3 ecosystem is another important aspect. These efforts will aim to clarify any misunderstandings and demonstrate how this developing platform can contribute to solving the existing problems.
Eventually, The triumph or failure of Web3 is largely determined by the appeal Web3 can generate. If we prefer adoption to innovative effort and concentrate on user-friendly solutions we can guarantee that Web3 as transformative technology will be for billions of users globally.
Defi Made Easy? Can the Right Design Tools Simplify Your Crypto Journey?
Traditional methods in the regulation of trends in DeFi (Decentralized Finance) may not be the optimal choice. In the age of Web3, where visibility and self-custody are primary elements, banks, and regulators have to develop new tools and strategies to ensure investor protection and efficiency of the market.
Historically speaking, financial regulations have been in the business of controlling the affairs of human institutions through prevailing laws and surveillance. But we are not on the web anymore, we are in the crypto sphere where the rules are programmed as dry code with rules being verifiable in self-governed networks.
The essence of financial regulation is to set up a framework for the markets to operate fairly and in the best interest of investors. Specific rules and regulations may deal with leverage, where buying on margin and borrowing the money can bring either big profits or big losses. In the past various centralized exchanges helped match sellers and buyers though at the same time, they established certain risks, for instance, manipulation of the market and conflicts of interest.
With the help of the DeFi, there is no need for any central authority. This is because self-custody allows the transparent processing of each transaction. Smart contracts, constructed on top of blockchain technology, automatically fulfill financial activities as well as unite liquidity without a central authority required.
The notion of “code is law” holds the spirit in Defi. Smart contracts regulate rules and also complete processes, providing an opportunity for cost and time saving as well as checking transparency. Although present regulations still cover fraudulent practices, new financial tools are required to shield DeFi investors as well.
These ways may be in the form of software for analytics, safety programs as well as reputable institutions who can approve these. Fundamentally, the regulators who supervise the regulations should take into account how technology can be tapped to be aligned with the policy objectives in the DeFi space.
Through the combination and use of the distinctive attributes of Web3 and DeFi, authorities can be able to develop innovation, while at the same time protecting the investors and promoting the market’s efficiency. The future of DeFi regulation is in the process of leveraging technology to work for the benefit of the players in the game.
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