Cardano team sits with Animoca’s Yat Siu – Web3, DeFi, and the future of crypto

In a recent episode of Let’s Talk Cardano, Yat Siu, the founder of Animoca Brands, discussed the transformative potential of Web3, decentralization, and the metaverse. During a compelling conversation with the talk show’s host, Alex Apeldoorn, Siu shared his perspective on the evolution of technology.

Yat Siu has showcased the importance of decentralization and how his early experiences shaped his path toward creating a more equitable digital future.

The Animoca Brands co-founder mentioned his journey into the world of decentralized technologies was influenced by his early life. Yat Siu admitted to being shaped by experiences in different countries, which continued to mold his views on power dynamics, fairness, and distribution. 

Yat Siu: Classical music influenced my path to decentralization

Raised by a professional musician, Yat Siu said he witnessed firsthand the economic struggles of artists. This is a theme that would later resonate with his passion for decentralization.

However, it was his exposure to different economic systems that truly shaped his worldview. “Growing up in East Berlin, I saw a truly communist world,” the entrepreneur recalled. This experience was followed by a move to the U.S. and eventually to Hong Kong.

It was in Hong Kong that he encountered what he describes as “Milton Friedman’s wet dream,” an ultra-capitalist environment with minimal social safety nets.

These contrasting experiences left a lasting impression on Siu. They influenced his views on what a fairer economic system could look like. “It’s not about equality,” he explained. “It’s about fairness. Capitalism needs a fair set of rules for a truly free market to work.“

This belief in fairer systems ultimately led Siu to embrace the potential of Web3 and blockchain technology.

For the businessman, decentralization is not synonymous with chaos, as critics often potray it. Instead, he sees it as a mechanism for distributing power, ensuring that no single entity can monopolize control over resources, markets, or platforms.

The promise of decentralization

“The beauty of decentralization is that it distributes power,” Siu explained. “When power is distributed, markets can compete in a free and fair way.”

He drew a parallel to the music industry, where platforms like Spotify initially promised fairer compensation for artists. However, they eventually became centralized, with more money flowing to the platform rather than the creators.

This centralization, the angel investor argued, undermines the very premise of a free market. He believes blockchain and decentralized systems provide the antidote by ensuring that no single entity holds too much power over the flow of capital or content.

This is the core promise of decentralization: creating a level playing field where participants can interact without the fear of exploitation.

The role of Web3 and the metaverse 

The crypto startup co-founder emphasized the importance of strong networks in driving adoption. He argued that a decentralized platform thrives when its success is determined by the strength of its community and the relationships formed within that community.

Yat Siu drew a comparison between decentralized networks and the rise of brand-driven communities. He cited Red Bull as an example. The connection between the brand and its audience creates a sense of belonging, much like the relationships formed in Web3 communities. 

“You drink Red Bull, I drink Red Bull, and suddenly we have something in common,” he noted. This sense of community, he argues, builds the kind of loyalty that drives a network to success.

According to the businessman, the value of a decentralized network is ultimately determined by the number of users who are building, creating, and transacting within it. “The true measure of success for a network is not whether the foundation is doing great things, but whether third parties are building and engaging,” Siu reiterated.

Decentralized finance adds meaning to the attention

One of the most significant developments of Web3 is its ability to link financial value to attention and engagement. Traditional systems (Web2) frequently monetize user interaction through centralized platforms. However, Web3 allows users to be directly rewarded for their participation.

Yat Siu acknowledged that this financial element adds a new layer of meaning to engagement. “When there’s something at stake, it becomes meaningful,” he said. This is particularly evident in the world of decentralized finance (DeFi) and token economies, where users can earn rewards for their involvement in the ecosystem.

However, he also pointed out that this financial aspect introduces risks. “It becomes deeper, but also riskier,” he warned. With financial stakes involved, users are more invested in the success of the network, but they are also exposed to potential losses. 

Yat Siu continued, “Rewards an element of seriousness and commitment to the decentralized ecosystem, making it more than just a speculative venture.”

Meanwhile, in another interview with Venture Beat, the Animoca Brands executive expressed high hopes for Web3 gaming in 2025. Siu advised projects looking to expand their user base to leverage Telegram and the TON blockchain. He believes both platforms harbor faster user acquisition.

Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap