yat siu ceo of animoca brands

The founder of Animoca Brands, the parent company of the decentralized metaverse platform known as The Sandbox, says that Meta Platforms is not spending as much as it should to build its metaverse as enticing people to join might be more difficult than they expect.

During the 2022 Disrupt event hosted by TechCrunch, Yat Siu, the head of the web3-focused holding company, commented that the $10 billion per year that Mark Zuckerberg has earmarked for the creation of a metaverse as the decentralized version of Horizon Worlds is more attractive and, hence, users will be drawn to it rather than going to Meta’s virtual realm.

Siu emphasizes that the key differentiator between the two platforms is that most of the value in the blockchain-based alternative “goes to the end user”, meaning that developers, investors, and even gamers are compensated the most since decentralized ecosystems do not charge the hefty fees that Meta Platforms (META) may be planning to.

Using other marketplaces for comparison, companies like Apple (AAPL) and Google (GOOG) currently charge developers as much as 30% of the revenues they make from subscriptions and in-app purchases.

In Siu’s view, you cannot have freedom without property rights. For this reason, his company – The Sandbox – has created an ecosystem in which investors can own a parcel of land in the form of a non-fungible token instead of a centralized entity owning the entire realm.

“You can’t have digital freedom without digital property rights. So our perspective on the open metaverse is that it has to start with a foundation of ownership. And that’s where The Sandbox stands out”, the head of Animoca commented.

Meta Invests Heavily in the Metaverse and Shed Billions in 2022

During the first semester of 2022, Meta’s Reality Labs unit – the one in charge of building the metaverse – produced revenues of $839 million but posted operating losses of $4.26 billion.

During that same period, capital expenditures rose to $13.3 billion compared to $9.2 billion the firm spent on the acquisition of both physical and digital assets during the first semester of 2021.

Also read: Apple Mixed Reality Headset Uses Iris Scanning for Login

In a recent conference call with financial analysts, Mark Zuckerberg deemed the metaverse a major technological wave for its business alongside artificial intelligence (AI) and called this digital real “a massive opportunity” as it allows users to experience realistic social interactions.

For Meta, the current goal is to expand Horizon Worlds – its mixed-reality virtual space – by further improving their avatars platform. The firm plans to launch a web version of Horizon before the year ends and that should “dramatically increase” the number of people who join the metaverse.

More Details on Animoca Brands – A Web3 Investment Powerhouse

Even though Animoca may be best known for The Sandbox, the company actually invests in a large number of web3 projects as they believe that the true future of the metaverse is in blockchain-based applications and ecosystems.

According to its latest investor update, its portfolio of investments was made up of 340 companies that were valued at $1.5 billion by the end of 30 April this year.

Some of the most prominent investments made by Animoca include OpenSea, Axie Infinity (AXS), Polygon, and Metamask. During its latest funding round in January this year, the investment company managed to raise $358 million in capital from investors at a valuation of $5 billion.

Animoca’s founder Siu believes that the web3 is the kind of trend that, when massively adopted, can lead to a surge in the valuation of all the successful companies that have been developing projects in the space.

As the saying goes, “a rising tide lifts all boats”… or at least that is what Siu expects.

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