{"id":620738,"date":"2023-03-22T11:49:02","date_gmt":"2023-03-22T16:49:02","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/22\/animocas-yat-siu-says-crypto-is-becoming-a-safety-net-amid-banking-crisis\/"},"modified":"2023-03-22T11:49:02","modified_gmt":"2023-03-22T16:49:02","slug":"animocas-yat-siu-says-crypto-is-becoming-a-safety-net-amid-banking-crisis","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/22\/animocas-yat-siu-says-crypto-is-becoming-a-safety-net-amid-banking-crisis\/","title":{"rendered":"Animoca\u2019s Yat Siu Says Crypto Is Becoming A \u2018Safety Net\u2019 Amid Banking Crisis"},"content":{"rendered":"
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Yat Siu, cofounder and chairman of Animoca Brands.<\/p>\n

Tory Ho\/Bloomberg<\/small><\/figcaption><\/figure>\n

Yat Siu, chairman of Asia\u2019s largest blockchain investor Animoca Brands<\/a>, thinks volatile cryptocurrencies are a relatively safe investment as the traditional financial world is rocked by the Credit Suisse turmoil and the failure of a string of U.S. banks.<\/p>\n

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\u201cIf you take a look what happened recently with the whole development with Silicon Valley Bank, which was obviously shocking, and with Credit Suisse being taken over by UBS\u2026actually the narrative was played out quite differently for crypto,\u201d Siu said via a video link on Monday at the Web3 Investment Summit in Hong Kong. \u201cIt started to actually bifurcate as some people had predicted, which is that sort of future, let\u2019s say, safety net.\u201d<\/p>\n

To be sure, cryptocurrencies are risky investments. The largely unregulated market saw roughly 60% of its value evaporate from its peak in November 2021, according to CoinGecko as of Monday. It comes after a series of corporate disasters, including the bankruptcy of Sam Bankman-Fried\u2019s FTX cryptocurrency exchange.<\/p>\n

Siu said the \u201csafety net\u201d turned out to be bitcoin and ether, the two largest cryptocurrencies by market cap, rather than stablecoins, which was perceived safe due to their claims to peg with fiat currencies. Bitcoin reached a nine-month high of about $28,200 on Monday evening Hong Kong time, while ether rose to a seven-month high of almost $1,800, CoinGecko data shows. However, USDC, the second largest stablecoin, briefly lost its U.S. dollar peg in mid-March after its issuer Circle admitted that it had $3.3 billion banked with the now-failed Silicon Valley Bank.<\/p>\n

Meanwhile, investors have been dumping Credit Suisse shares after rival UBS agreed to take over the 167-year-old bank for $3 billion on Sunday. The Swiss banking behemoth saw its stock price plummet nearly 60% on Monday. It comes hot on the heels of the collapse of crypto-friendly U.S. banks Silvergate Bank and Signature Bank, as well as Silicon Valley Bank, a major lender to startups and venture capital firms.<\/p>\n

\u201cIn light of that, crypto and specifically bitcoin and ether become attractive alternative ways to store value without those particular traditional banking risks,\u201d said Siu in a written response to Forbes<\/em>. \u201cThese cryptocurrencies have made notable gains just as the banking crisis rose to prominence. It\u2019s not a coincidence. I think what we\u2019re seeing now is a flight of regular money to some cryptocurrencies.\u201d<\/p>\n

Even though Hong Kong-based Animoca was not \u201cdirectly impacted\u201d by the banking crisis, some of the more than 380 companies in its investment portfolio \u201cwould be affected,\u201d said Siu. The Animoca cofounder said the deposits of those companies are safe and that \u201cthe problem is not critical.\u201d The company has previously informed its investors that it hasn\u2019t banked with Silvergate or Silicon Valley Bank.<\/p>\n

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Animoca, which counts Singaporean sovereign wealth fund Temasek, Sequoia Capital and others as its investors, has been hit by the ongoing crypto winter. Most of the crypto tokens of its blockchain games, including flagship title the<\/em> Sandbox<\/em>, have nosedived more than 90% from its peak during the crypto boom in 2021.<\/p>\n<\/div>\n

Read More<\/a>
\n Zinnia Lee<\/p>\n","protected":false},"excerpt":{"rendered":"

Yat Siu, cofounder and chairman of Animoca Brands.Tory Ho\/Bloomberg Yat Siu, chairman of Asia\u2019s largest blockchain investor Animoca Brands, thinks volatile cryptocurrencies are a relatively safe investment as the traditional financial world is rocked by the Credit Suisse turmoil and the failure of a string of U.S. banks. \u201cIf you take a look what happened<\/p>\n","protected":false},"author":1,"featured_media":620739,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120604,22791],"tags":[],"class_list":{"0":"post-620738","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-animocas","8":"category-crypto"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/620738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=620738"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/620738\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/620739"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=620738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=620738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=620738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}