Animoca Brands Chairman Yat Siu argues the cryptocurrency sector faces a distinct maturity crisis. The catalyst is not just internal development cycles. It is the external pressure of a potential Donald Trump presidency and the looming threat of global trade tariffs.
Siu told Cointelegraph that the industry can no longer rely on the speculative fervor that defined previous bull runs. A Trump administration generally signals deregulation. However, Siu warned that accompanying trade tariffs could destabilize global markets. This macro friction often drives capital away from high-risk speculative assets. It forces a flight to tangible value.
The Death of Pure Speculation
The days of funding infrastructure with no users are closing. Siu noted that the market is saturated with blockspace and protocols. The liquidity required to sustain tokens with zero utility is drying up. Projects must now prove they can generate revenue or engagement independent of token incentives.
"We have to grow up. We have to be about utility. We have to be about the product," Siu stated.
He specifically pointed to utility tokens as the necessary evolution. These assets function less like stocks and more like loyalty points or in-game currency. They must offer immediate use cases to survive a tighter economic environment.
Institutional Context
This pivot aligns with Animoca’s recent capital allocation. The firm has backed over 450 Web3 companies. It is currently consolidating its focus around the Mocaverse network to aggregate consumer application layer value. Siu’s comments suggest a strategic intolerance for portfolio companies that fail to transition from infrastructure plays to consumer products.
The shift comes as the broader market struggles to retain users post-airdrop. Protocols that fail to demonstrate value beyond the initial token distribution event face existential risk in a tariff-heavy economy.
