According to Yat Siu, co-founder of computer gaming company Animoca Brands, royalties have contributed to expanding the non-fungible token (NFT) ecosystem. Siu explained that all of the innovations were made possible by the availability of royalties.
The Hong Kong-based company has taken a strong stand in support of digital creators through its NFT licenses, which, according to Siu, were issued as a legal means of safeguarding their royalties rights. Siu highlighted the company’s position at the annual NFT Paris conference, emphasizing the significance of creative rights and royalties inside Web3.
Despite a bear market that dominated most of 2022, the NFT business generated sales over $24 billion. He stated that billions of dollars were paid to creators, but more significantly, a greater amount went to the owners of the assets of these entities, which powered an industry that allowed for the establishment of companies such as Blur, OpenSea, or Magic Eden.
Without royalties, there would not be enough funds in the ecosystem to encourage project innovations, according to Siu. In their opinion, he expressed that the elimination of the aforementioned factor would cause the industry to regress.
Currently, the company is planning to establish the next OpenSea in the MENA (Middle East-North Africa) region. The company recently invested in Nuqtah, the first licensed non-fungible token (NFT) marketplace in Saudi Arabia.
Siu stated that the investment is viewed similarly to the one made in OpenSea in 2019. The investment in OpenSea contributed to the construction of the NFT economy’s infrastructure, which was non-existent at that time but has now become considerably significant. Siu asserts that regional NFT participants exist among large market players such as Japan. Yet, he stated that the MENA area has yet to establish a major role.
Siu added that Animoca Brands is supporting Nuqtah in an effort to initiate NFT infrastructure development in Saudi Arabia. Siu did not disclose the private investment’s exact amount, but he clarified that it did not involve any government funds.