Cryptocurrency tycoons are entrusting their digital wealth in the metaverse to ‘gamefi’ services by technology firms
- Blockchain gaming giant Animoca Brands has partnered with start up Hex Trust to help affluent blockchain users keep their cryptocurrency assets safe
- As tycoons bid for virtual real estate in the metaverse, they are seeking services to keep digital assets safe from crimes and thefts
Blockchain gaming giant Animoca Brands is betting that its new joint venture with start-up Hex Trust will usher in a milestone for the metaverse.
‘The art never matters’: why the NFT art market is full of stolen work
Animoca Brands’ valuation surges to US$5bn as metaverse frenzy continues
“Most people who own digital assets through NFTs today are new to the cryptocurrency scene as they started investing just one year ago,” said Yat Siu, chairman and co-founder of Animoca Brands. “A custodial platform would help them get on board, as many are not comfortable holding them in their own cryptocurrency-wallets.”
Anomica Brands’ portfolio of games includes Axie Infinity, a vastly popular blockchain-based game in which players have reportedly been able to reap a daily income of US$200. They could earn even more by trading in-game assets such as the digital monster-pet called Axie.
Hong Kong’s Animoca targets ‘open metaverse’ investors for latest funds
“A metaverse that promises to give each participant independent ownership cannot exist without cryptocurrencies, otherwise it would become less interesting, as that would become the equivalent of a centralised metaverse like what Facebook is trying to create,” said Alessio Quaglini, chief executive of Hex Trust.
Platforms such as The Sandbox have now created demand for financial services from blockchain gamers, who profit through “play-to-earn”, also known as “gamefi”, he said.
As a regulated cryptocurrency-custodial service provider, Hex Trust needs to comply with strict operational requirements and obtain security certifications imposed by regulators, Quaglini said. The firm can also help with succession planning of digital assets, so that if the original holder of NFTs passes away or ceases to have access to the assets, it can help with their transition to the next of kin.
Scion of Hong Kong’s real estate giant invests to sell land NFTs
With a digital wallet, holders are then able to make or receive payment for NFTs built on the metaverse, exchange the NFT for other cryptocurrencies, lend it out, or borrow money against their NFTs.
“All financial innovations start with the private, decentralised ownership of our assets. You cannot build value on assets you do not already own, and that’s the true value of the metaverse,” said Siu.