Animoca CEO: Crypto Is The New “Safety Net” Amid Banking Instability
Key Points:
- Yat Siu cryptocurrencies represent a relatively safe investment option in the current economic climate, particularly when compared to traditional financial institutions such as Credit Suisse and a series of failed US banks.
- Siu suggests that regular money is currently being invested in cryptocurrencies as a way to store value without exposure to traditional banking risks.
Yat Siu CEO Animoca Brands particularly when compared to traditional financial institutions such as Credit Suisse and a series of failed US banks.
Speaking at the Web3 Investment Summit in Hong Kong, Siu claimed that the recent narrative around cryptocurrencies has led to a split in the market, with some investors seeking a “future safety net”. Siu identified bitcoin and ether as the two largest cryptocurrencies by market cap that offer this safe haven, rather than stablecoins, which have been perceived as safe due to their links to fiat currencies. In contrast to the volatility of cryptocurrencies, traditional financial institutions have faced numerous problems in recent times, such as the collapse of crypto-friendly US banks Silvergate Bank and Signature Bank, and the takeover of Credit Suisse by UBS.
While Siu acknowledges that cryptocurrencies can be risky investments, with the largely unregulated market seeing a 60% drop in value from its peak in November 2021, he believes that they offer an attractive alternative to traditional banking methods, particularly when faced with the risks associated with those methods. Siu suggests that regular money is currently being invested in cryptocurrencies as a way to store value without exposure to traditional banking risks.
Animoca Brands has not been directly impacted by the banking crisis, although some of the companies in its investment portfolio may be affected. Siu claims that the company has previously informed its investors that it has not banked with Silvergate or Silicon Valley Bank and that the problem is not critical. The company has struggled in the current crypto winter, with most of the crypto tokens of its blockchain games, including the Sandbox, falling more than 90% from their peak during the crypto boom in 2021. Animoca Brands’ investors include Singaporean sovereign wealth fund Temasek and Sequoia Capital, among others.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Annie
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Animoca CEO: Crypto Is The New “Safety Net” Amid Banking Instability
Key Points:
- Yat Siu cryptocurrencies represent a relatively safe investment option in the current economic climate, particularly when compared to traditional financial institutions such as Credit Suisse and a series of failed US banks.
- Siu suggests that regular money is currently being invested in cryptocurrencies as a way to store value without exposure to traditional banking risks.
Yat Siu CEO Animoca Brands particularly when compared to traditional financial institutions such as Credit Suisse and a series of failed US banks.
Speaking at the Web3 Investment Summit in Hong Kong, Siu claimed that the recent narrative around cryptocurrencies has led to a split in the market, with some investors seeking a “future safety net”. Siu identified bitcoin and ether as the two largest cryptocurrencies by market cap that offer this safe haven, rather than stablecoins, which have been perceived as safe due to their links to fiat currencies. In contrast to the volatility of cryptocurrencies, traditional financial institutions have faced numerous problems in recent times, such as the collapse of crypto-friendly US banks Silvergate Bank and Signature Bank, and the takeover of Credit Suisse by UBS.
While Siu acknowledges that cryptocurrencies can be risky investments, with the largely unregulated market seeing a 60% drop in value from its peak in November 2021, he believes that they offer an attractive alternative to traditional banking methods, particularly when faced with the risks associated with those methods. Siu suggests that regular money is currently being invested in cryptocurrencies as a way to store value without exposure to traditional banking risks.
Animoca Brands has not been directly impacted by the banking crisis, although some of the companies in its investment portfolio may be affected. Siu claims that the company has previously informed its investors that it has not banked with Silvergate or Silicon Valley Bank and that the problem is not critical. The company has struggled in the current crypto winter, with most of the crypto tokens of its blockchain games, including the Sandbox, falling more than 90% from their peak during the crypto boom in 2021. Animoca Brands’ investors include Singaporean sovereign wealth fund Temasek and Sequoia Capital, among others.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Annie
Coincu News
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