Animoca Brands was a struggling mobile game company when it stumbled upon a blockchain-based marketplace, CryptoKitties, in 2016. A month after the platform's release, Ethereum was nearly wiped out. As a result, the crypto market took a major hit, triggering a "crypto winter." Siu's idea to tokenize the digital world turned into a $7.6 billion-dollar success story.
In 2017, Siu came across CryptoKitties, a platform that facilitated the sale and exchange of virtual pets. He invested in the parent company, Dapper Labs, which was then known as Axiom Zen. The company is now valued at $7 billion. That was the first of more than 150 investments in the company that have used the NFT technology.
The idea behind the new platform is to make video games more accessible to low-income people. As a result, a company that offers free, fun mobile games will gain more customers. Even if players can't afford to pay full price for the games, they can earn cash through in-game purchases. The money generated by CryptoKitties allows low-income players to earn a few dollars per day. The concept has yet to catch on with western gamers, but it's a great opportunity for the $200 billion video game industry.
A popular example of a NFT game is Axie Infinity. In the game, players acquire digital pets called Axies. Axies are unique creatures that are based on their genetics. They are stored in a virtual wallet and can be purchased with tokens. Axies can be purchased using digital currencies or purchased with real-world money.
The NFT technology is becoming increasingly accepted in the gaming industry. Developers can now start selling their own NFT assets, while players can buy and sell NFTs to boost their revenue. But the most popular use of the technology is item trading. It is possible to create virtual goods and sell them through an NFT marketplace. However, NFTs have a high risk-reward ratio.
The first NFT Pivot Siu made in 2013 turned a tiny mobile game company into a multibillion-dollar business. The NFT conference was attended by more than 250 die-hard believers in the NFT model. The conference was also the perfect venue for Siu to build relationships with companies like OpenSea and The Sandbox.
Animoca Brands is an Austrian-born mobile game company with a billion-dollar valuation. The NFT model allows players to create and sell their own digital assets, without the need to spend money on a virtual storefront. Besides, it also allows people to share the same NFT tokens among several users. This means that the NFT market is a perfect platform for developers to make games, and there is no need to worry about duplicated work.
In the meantime, the NFT model is helping to de-mystify the NFT. While the world is still grappling with the idea of regulating NFTs, the market has not yet reached the point where it can regulate the NFTs. This monopoly on the market is a reason for concern.
Siu co-founded Animoca Brands and introduced the CryptoKitties project to the market. It became immensely popular within a month of its launch and almost broke Ethereum in the same year. After a few months, the crypto market dropped, and the company lost all of its money. The restructured business models are now in a position to survive in the crypto space.
The NFT market is dominated by open-source games. Animoca Brands' blockchain-based games are a burgeoning success story. The company is already a leading player in the market, having recently raised over $1.25 billion. Then, in 2018, a similar deal occurred with the Japanese mobile gaming giant.