We're "So Early Still" With Crypto ft. Yat Siu from Animoca Brands

Key Concepts

• Trump’s Impact on Crypto: The complex and often underestimated influence of Donald Trump on the crypto market, both positive (policy support) and negative (market volatility due to associated events).
• Institutional Adoption: The increasing involvement of institutional investors in the crypto space, shifting the market dynamics from retail-driven speculation to long-term investment.
• Tokenization: The process of representing real-world assets as digital tokens on a blockchain, seen as a major growth area for crypto.
• Clarity Act: Anticipated legislation expected to provide regulatory clarity for the crypto industry in the US, potentially boosting altcoin adoption.
• Altcoins vs. Bitcoin: The argument that altcoins, representing the broader utility of crypto, will collectively surpass Bitcoin in market capitalization, analogous to the stock market exceeding gold’s value.
• GameFi & NFTs: The evolution of NFTs beyond speculative assets to integral components of gaming ecosystems, focusing on gamification of finance.
• AI & Crypto Interplay: The synergistic relationship between AI and crypto, with tokens representing the digital commodities powering AI infrastructure.
• Solana’s Ecosystem: The unique characteristics of the Solana blockchain, including its monolithic structure, strong community, and focus on internet capital markets.

The State of Crypto: Looking Ahead to 2026 and Beyond

The conversation, held at Breakpoint 2025 in Abu Dhabi, centers on the current state of the crypto market and expectations for the future, particularly focusing on 2026 and beyond. Yatsu, co-founder of Animoka Brands, shares his insights with the interviewer.

2025 Recap & Lessons Learned

2025 is characterized as a “flat year” for crypto, despite a strong start. The initial optimism surrounding the US presidential election and Donald Trump’s potential positive impact on the industry proved to be misplaced. The emergence of “Trump and Melania tokens” and subsequent market volatility in Q1 created damage, followed by a recovery in Q2 and Q3. Predictions of Bitcoin reaching $150,000-$200,000 did not materialize.

A key lesson learned is that while Trump is supportive of crypto policy, the industry remains a secondary priority for him compared to broader economic concerns like jobs, trade, and geopolitical issues. The market, according to Yatsu, overreacted to the prospect of a Trump presidency, taking on excessive risk based on the assumption of unwavering support. As Yatsu states, “Trump is the man of the year for crypto, both in the good and the bad side.” He rates Trump’s impact as “B minus, C++” rather than the anticipated “A+++”.

2026 Outlook: “Eyes Wide Open”

The theme for 2026 is “eyes wide open,” advocating for a more realistic and cautious approach. While optimism remains, the market needs to acknowledge that Trump’s support is not absolute. The anticipated passage of the Clarity Act is expected to be “incredibly bullish” for the industry, particularly for altcoins, driving further tokenization. However, Trump remains an “X factor,” and investors must manage the risk associated with his unpredictable priorities.

Institutional adoption is predicted to continue rising, with stablecoins and increased public company listings (like Kraken’s planned reverse merger with Currency Group) playing key roles. This shift will lead to a focus on tokens with strong fundamentals, appealing to long-term institutional investors.

The Rise of Institutional Investment & IPOs

Yatsu details Animoka Brands’ planned reverse merger with Currency Group, a fintech company listed on NASDAQ (ticker CUR, potentially changing post-closing). The deal involves a 95/5 share ratio, with Animoka Brands holding 95% of the combined entity. Currency Group already serves 30 million customers and has a business relationship with Ripple, making it a strategically valuable target.

The primary motivation for going public is to position Animoka Brands as the “best index and alternative lever bet on altcoins.” Yatsu argues that altcoins will collectively surpass Bitcoin in market capitalization, mirroring the relationship between gold and the stock market. He believes altcoins represent the true utility of crypto, powering various applications like DeFi, gaming, and tokenized assets. He states, “Altcoins today however is half the value of bitcoin… if you are going to want to be invested in crypto and if you believe as we do that crypto in the mid to long term will be at least a hundred trillion asset class then how can you not have exposure to altcoins.”

The public vehicle will provide broader access to investment opportunities, allowing individuals to participate in the growth of the altcoin market, and Animoka Brands is also exploring tokenizing its shares through Republic on Solana.

NFTs: Evolution and Future Potential

NFTs, while experiencing a decline in hype, remain a significant part of the digital landscape, with monthly sales volume still around $300-400 million. Yatsu emphasizes that NFTs are still the “ultimate store of digital culture.”

The initial approach to “GameFi” – simply adding NFT skins and tokens to existing web2 games – was flawed. The focus should be on “gamification of finance,” creating fun and engaging trading experiences. He draws a parallel to Gen Z’s approach to trading, where the thrill and social aspects are as important as financial gains.

He highlights the potential for prediction markets, which offer real-time sentiment analysis and hedging opportunities, and the importance of tokenization in the AI space, where tokens can represent the digital commodities powering AI infrastructure.

Solana’s Strengths and the Future of Blockchain Ecosystems

Solana is highlighted as an interesting protocol, particularly from an institutional perspective. The FTX sale of Solana tokens provided increased institutional exposure. Solana’s monolithic structure and centralized communication approach have been beneficial in unifying the ecosystem, contrasting with the more fragmented nature of Ethereum.

Yatsu acknowledges the trade-offs of Solana’s approach, noting that a single point of failure could impact the entire network. However, he believes Solana’s strong community and focus on “internet capital markets” position it for continued success.

Final Takeaway: Tokenization is Key

Yatsu concludes by emphasizing that the crypto market is still incredibly early. He predicts that 2026 will be a significant year, driven by the Clarity Act and the widespread adoption of tokenization. His core message is: “tokenize or die.” Companies that embrace tokenization will gain a competitive advantage, mirroring the historical dominance of platforms like Google, Facebook, and Instagram. He believes tokenization is the next evolution of the internet, offering greater access, transparency, and efficiency.

This conversation provides a nuanced perspective on the current state and future trajectory of the crypto market, emphasizing the importance of realistic expectations, institutional adoption, and the transformative potential of tokenization.