According to CoinDesk, Yat Siu, founder of Animoca Brands, believes that non-fungible tokens (NFTs) are underutilized and have the potential to become a major component of digital capitalism, transforming industries such as rights management and education. Siu argues that the current lower valuations of NFTs indicate a healthier, more genuine interest in the technology’s utility, which could be crucial in addressing global financial inequality and promoting financial literacy. However, legal frameworks, specifically in the U.S., must evolve to fully support this vision.
Siu said in a recent interview that NFTs, which provide a user ownership of digital or tangible assets, have not yet tapped into their full utility. He believes that the ability to have proper digital ownership on the blockchain is the key to disrupting the multi-billion dollar industry of rights management and content delivery, which touches everything from education to gaming. Siu highlighted the example of TinyTap, an edtech company acquired by Animoca Brands in 2022, where teachers on the platform can monetize their content, bypassing traditional barriers like publishing houses.
Siu argues that the compressed valuations of NFTs compared to their peak during the bull market are not a bad thing, as it leaves behind those genuinely interested in the technology, strengthening its foundation. He believes that NFTs can be the antidote to inequality and the first step in building a financially literate society. Siu also notes that in the U.S., there is a rejection of digital capitalism, which he believes stems from emotional reactions to the monetary aspects of NFTs and underscores the importance of education in addressing these perceptions. He views the shift of the Democratic Party in the U.S. towards the far left as a threat to democracy and sees Web3 as a potential solution to save the capitalist narrative by turning users into stakeholders and co-owners. However, the U.S. Securities and Exchange Commission (SEC) seems ready to take action against the industry, and a legal framework still needs to evolve for NFTs to fulfill their potential in addressing financial inequality and transforming industries.