Fireside: Animoca's Yat Siu

"Tokenize or die." That stark warning from Yat Siu, co-founder of Animoca Brands, captured the urgency of a rapidly evolving digital economy during his fireside chat at Breakpoint 2025. With over 628 portfolio companies under Animoca's belt and a landmark equity tokenization on Solana underway through Republic, Siu delivered a sweeping vision of where crypto markets are headed—and why altcoins, not Bitcoin, will ultimately drive the industry's greatest value creation.

Summary

Top Projects

Lulo

Score: 7,586.13

Bonk

Score: 4,806.12

Sphere

Score: 2,544.42

Moonwalk

Score: 2,026.11

Yat Siu, one of crypto's most prolific investors with Animoca Brands' portfolio spanning 200+ gaming companies and hundreds more across DeFi and Deepin, laid out a compelling case for why altcoins will collectively exceed Bitcoin's market value by a significant margin. His argument hinges on a simple comparison: Bitcoin is digital gold, a store of value that people hold but don't use. Altcoins, by contrast, are the working engines of the crypto economy—used for gas fees, gaming, digital identity, and financial applications.

The conversation, moderated by Republic co-CEO Andrew Durgee, also explored the current state and future of Web3 gaming, which has faced headwinds since COVID. Siu identified TikTok as gaming's unexpected competitor for social attention, while pointing to GTA 6's launch (expected November 2025) and the anticipated passage of the Clarity Act as dual catalysts that could reignite the sector. These regulatory and cultural moments, he argued, will give traditional gaming giants the confidence to launch tokens of their own.

Perhaps most significantly, Siu announced that Animoca Brands is tokenizing its equity on Solana through Republic—a move that positions the company to reach digital-native investors, the global unbanked population using stablecoins, and eventually AI agents conducting 24/7 trading. This isn't just a funding strategy; it's a survival imperative in an era where non-tokenized companies will lose competitive ground to those embracing blockchain-based capital markets.

Key Points:

Altcoins Will Surpass Bitcoin in Total Value

Yat Siu presented a compelling macro thesis comparing cryptocurrency markets to traditional finance. Gold, at $27 trillion, represents a significant store of value—but the combined public stock market exceeds $128 trillion, with private markets pushing total equity value to around $250 trillion. The ratio is roughly 10:1 in favor of productive assets over stores of value.

The same dynamic applies to crypto, Siu argues. Bitcoin serves as "digital gold" and the crypto ecosystem's "piggy bank" where profits are stored. But altcoins—used for transactions, gaming, DeFi, and digital identity—represent the productive economy. As these use cases expand, altcoins collectively will dwarf Bitcoin's market cap. This doesn't diminish Bitcoin; rather, the growth of altcoins actually benefits Bitcoin as participants convert gains into the ultimate store of value.

The True Meaning of GameFi: Gamification of Finance

Siu challenged the conventional understanding of Web3 gaming, arguing that the industry made a fundamental mistake by simply translating Web2 gaming mechanics (skins as NFTs, in-game currencies as tokens) into blockchain environments. The real opportunity lies in the gamification of finance itself.

Platforms like Polymarket represent gaming experiences for many users, just as Robinhood and eToro have transformed trading into entertainment with leaderboards and social features. This shift reflects a generational change: younger users who grew up with gaming culture view financial markets through that lens. The implication is profound—financial literacy and engagement will increasingly come through game-like experiences rather than traditional education.

Gaming's Competition and Coming Catalysts

The gaming industry has struggled post-COVID, but not for the reasons most assume. TikTok, not other games, has emerged as gaming's biggest competitor by capturing the social attention that games traditionally monopolized. Siu cited Bartle's Taxonomy, which shows that 80% of gamers are "socializers" who play primarily for social reasons—making them vulnerable to any platform offering superior social engagement.

Two major catalysts could shift this dynamic. First, GTA 6's launch (currently slated for November 2025) will create a narrative moment for gaming that could lift Web3 gaming tokens, similar to how AI became a dominant market narrative. Second, the Clarity Act's expected passage will provide regulatory certainty that enables major gaming studios like EA, Activision, and Take-Two to consider token launches without legal risk—mirroring how the Genius Act prompted Facebook, Amazon, and Walmart to explore stablecoins.

Equity Tokenization as Competitive Necessity

Animoca's decision to tokenize its equity on Solana through Republic represents more than a funding mechanism—it's a strategic imperative. Siu outlined three reasons why companies that don't tokenize will lose to those that do.

First, market reach: an estimated 150-200 million additional people globally now hold stablecoins, giving them access to the dollar economy despite being traditionally "unbanked." Companies accepting tokens can reach these customers; those that don't, simply cannot. Second, generational preference: young investors in markets like South Korea already prefer crypto assets over traditional stocks. If the next generation manages wealth through Phantom wallets rather than brokerage accounts, companies must meet them there. Third, AI agents will trade tokenized assets 24/7 on permissionless blockchains—they won't operate on centralized platforms that can shut them off. Companies with tokenized securities will be accessible to this emerging market force.

Tokens as Financial Literacy Onboarding

In a nuanced defense of meme coins and speculative tokens, Siu framed them as onboarding mechanisms for financial literacy rather than mere gambling. The global reality is stark: less than 10% of the world's population owns equities, and those who understand investing consistently outperform those who don't.

Just as Pokemon cards taught children about value and trading, meme coins and utility tokens introduce millions to concepts of market dynamics, price discovery, and portfolio management. This foundational experience creates a pipeline toward more sophisticated securities investing. Solana's role in enabling this onboarding has helped millions take their first steps into financial participation—even if critics dismiss some activity as speculation.

Facts + Figures

• Animoca Brands has invested in over 628 portfolio companies, including 200+ in gaming
• Global equity markets (public + private) total approximately $250 trillion compared to gold's $27 trillion
• The stock market alone represents roughly $128 trillion, about 10x the value of gold
• Less than 10% of the global population owns equities
• Approximately 150-200 million previously unbanked individuals worldwide now hold stablecoins
• Roblox, the world's largest game, has 340 million users
• According to Bartle's Taxonomy, roughly 80% of gamers are "socializers" who play for social reasons
• CSGO's skin trading market reached $6-7 billion at its peak before being restricted
• GTA 6 is scheduled to launch in November 2025, though delays remain possible
• Current RWA (Real World Asset) tokenization stands at approximately $30-40 billion—a "drop in the ocean" compared to total equity markets
• The Clarity Act is expected to pass and provide regulatory framework for gaming tokens
• Young South Korean investors predominantly prefer crypto over traditional stocks

Top Quotes

"Tokenize or die."

"My general perspective is that altcoins collectively are going to exceed the value of Bitcoin by a really, really large margin."

"People don't use Bitcoin. I think you all know that, but they do use altcoins."

"The growth of altcoins actually benefits Bitcoin."

"When we say GameFi, I think many people in the industry, particularly the ones who came from Web2, made a general mistake... it's much more than that. It's more about the gamification of finance."

"The biggest actual competitor [to gaming] is TikTok."

"For those Bitcoin maxis that are out there, the message really is that actually things like Solana and altcoins is actually good for Bitcoin."

"If you don't accept tokens, those customers cannot become your customers."

"Crypto and tokens is the asset class of the youth."

"I think meme coins, utility tokens are actually the onboarding mechanism... you learn from that."

Questions Answered

Why does Yat Siu believe altcoins will exceed Bitcoin's total market value?

Siu draws a parallel between cryptocurrency markets and traditional finance. Gold, as a store of value, is worth about $27 trillion, while productive equities in public and private markets exceed $250 trillion—roughly 10 times more. The difference is usage: people don't use gold in daily transactions, but they actively use stocks and the products of those companies. Similarly, Bitcoin functions as digital gold that people hold but rarely use, while altcoins power actual transactions, gaming, DeFi applications, and more. Since the productive economy always exceeds the value of pure stores of value, altcoins collectively will surpass Bitcoin. This doesn't hurt Bitcoin—the profits from altcoin investments typically flow back into Bitcoin as the ecosystem's "piggy bank."

What is the real meaning of GameFi according to Animoca?

GameFi isn't simply about converting game assets into NFTs or in-game currency into tokens—that's a skeuomorphic mistake the industry made. True GameFi represents the gamification of finance itself. Platforms like Polymarket function as games for their users, and trading apps like Robinhood have incorporated leaderboards and social features that make investing entertaining. This reflects how younger generations, raised on gaming culture, naturally view financial markets through a game-like lens. The implication is that financial services must adopt gaming mechanics to engage the next generation of users, while games can incorporate financial elements to create new hybrid experiences.

Why has gaming struggled recently and what will change that?

Gaming has faced unexpected headwinds since COVID, primarily from TikTok capturing social attention. Since roughly 80% of gamers are "socializers" who play primarily for social connection rather than achievement or competition, any platform offering better social engagement threatens gaming's core appeal. Two catalysts could reverse this trend: GTA 6's launch in late 2025 will create a major cultural moment that could lift the entire gaming narrative, including Web3 gaming tokens. Additionally, the Clarity Act's expected passage will give regulatory certainty, enabling major gaming studios to launch tokens without legal concerns—similar to how stablecoin legislation prompted major tech companies to enter that space.

Why is Animoca tokenizing its equity on Solana?

The tokenization serves three strategic purposes beyond fundraising. First, it provides access to an estimated 150-200 million people globally who hold stablecoins but lack traditional banking—these potential investors simply cannot participate in non-tokenized offerings. Second, younger investors increasingly prefer crypto assets over traditional stocks; meeting them in their preferred format (digital wallets rather than brokerage accounts) is essential for reaching the next generation of investors. Third, AI agents conducting automated trading will operate on permissionless blockchains because they need 24/7 access without centralized shutoff risks. Companies with tokenized securities will be accessible to this emerging market force; non-tokenized companies will be invisible to AI-driven capital allocation.

How do meme coins contribute to financial education?

Rather than dismissing meme coins as pure speculation, Siu frames them as an onboarding mechanism for financial literacy. With less than 10% of the global population owning equities, most people lack exposure to investment concepts. Just as Pokemon cards taught children about value, scarcity, and trading, meme coins introduce millions to market dynamics, price discovery, and portfolio thinking. This experiential learning creates a foundation for progression into more sophisticated investing. Solana has been instrumental in this process, helping millions take their first steps into financial participation—even if the initial exposure involves speculative assets.

What does tokenization mean for the future of Solana?

Equity tokenization represents Solana's maturation beyond meme coins and utility tokens into internet capital markets. While current RWA tokenization amounts to $30-40 billion, global equities exceed $200-300 trillion—meaning the opportunity is vastly larger than current activity suggests. Solana's vision of internet capital markets requires equities to be tokenized and tradable on-chain. This progression from speculative assets to regulated securities represents the blockchain's evolution into a comprehensive financial infrastructure, while maintaining its role as an onboarding mechanism for financial newcomers.