GTA 6 Stablecoin Potential🚀Animoca's MASSIVE Crypto Treasury!🔥Yat Siu INTERVIEW

Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome back into the show. Today we're going to be
diving into what's happening with Animoka Brands and a lot more.
You guys don't want to miss it. My name is
Paul Barron. Let's get started. I do want to thank
our sponsor today and that is Gemini. You guys can
actually go over and get your own credit card and
earn bitcoin rewards over on Gemini dot com. Just forward
slash credit card you'll be able to find it. We'll
leave a link down below. There's a lot of benefits

(00:22):
here in terms of instant rewards and it's going straight
in as Bitcoin. Or you can actually select a crypto
that maybe you want to go with, but four percent
on all your transportation, dining, groceries, you name it. Check
it out. Use our link down below and you can
get up to fifty different cryptos and earn up to
two hundred bucks on your first three thousand dollars in expenditure.

(00:43):
So check it out and let's get started. Let's go
over to a couple of points. We're going to have
Yatsu on from Anamoka Brands on today. I do want
to remind you guys that we looked at a video
and did with him quite some time ago. It was
referenced to GTA six and the concept was is that
AI agents will be coming into possibly gaming. We are
repositioning our thought on this. One of the things that

(01:06):
is starting to happen is we could see a cryptocurrency
in GTA six. There are speculations right now that it
could be our star. We don't think it's going to
be that. This seems more of a rumor but speculation.
But it does bring up the idea that maybe there's
an alternative here and I want to play a clip
for you and then we'll bring in yacht su and

(01:27):
get into it. So take a look.

Speaker 2 (01:29):
Digital downloads didn't present that problem, and it was pretty
soon after where Take two said, look, in the event
we have a hit, we should be able to give
more of that hit to consumers and create a thread
in between these huge tempole releases. It was only, you know,
a quick movement from there to virtual currency and game

(01:51):
And the first time we tried that was with NBA
two K in twenty eleven and it was a test.
We had no idea how would do and it ended
up being very successful, and then of course virtual currency
was embedded for the first time in Grand Theft Dotto
Online for Grand Theft at All five and again that
turned out to be much much more successful than we

(02:11):
ever expected. But if you're old to clock forward ten years,
which is my job, that's your job, boll ten twenty
years down the road, not tomorrow, not for the quarter.

Speaker 1 (02:19):
All right, So stras Selink there from Take two. First
of all, what do you make of that clip by
Strauss in terms of where he sees kind of the
digital landscape inside gaming?

Speaker 3 (02:30):
Take two was actually one of the slower adopters when
it comes to the freemium business model, right. It was
innovated really in Asia with mass massively multiplayer online games,
and really only started becoming mainstream in the Western particularly
in the US, probably five or six years after, you know,
around twenty fifteen twenty sixteen is when it really started
to pick up. Was something that was very uncomfortable for

(02:51):
the sort of game studios, particularly in the West, and
now it's pretty much the predominant business model. But what
isn't clear to me, given some of the previous comments
that Strauss selling has made, is that Take two in
and of itself is going to issue a token. Although
that may change because of the fact that the US
is now much more open, and there might be clarity
around this from a regulatory standpoint, but I expect much

(03:12):
more activity to happen on the RP servers rather than
take two in and of itself.

Speaker 4 (03:16):
So basically, people are running sort of.

Speaker 3 (03:18):
The GTA six servers, and they will then issue their
own tokens around their particular game economies. That's kind of
what we're expecting.

Speaker 1 (03:25):
If you look at what Strauss is talking about, and
you kind of consider, all right, that maybe the alternative
here would be a stable coin, because this could be
a scenario that could take over some of the digital
components here, would you predict maybe that they might try
to go that route actually launching a stable point and maybe, okay,
you think so, yeah, So I.

Speaker 3 (03:44):
Think a stable coin is much more likely a couple
of reasons. One, you know, the Genius Act actually opens
it up already, and while you can't expect the gaming
companies to do that first, you know, Amazon and Walmart
and probably Facebook and probably Google as well, like we
don't know sure, but they're all probably thinking about it.
Oh there's a legislation. Now there's a rule where I

(04:05):
can actually do that. And one of the challenges all
is when you have changes with a new presidency, is
that is it actually something that is in law or
is it something that can be changed at any time
like an executive order. And the Genius Act basically just
passed through law, which means that it's much more certain
that you can build on something in the long long
term for it, right, So stable coins will probably be

(04:25):
the first thing that people, you know, is it possible
therefore that gaming companies around the world, particularly in US,
will start issuing their own stable coins? I think it's
entirely possible. So take to could sort of pull it off.
But the difference is that they use the cash for
operations rather than as a exchange medium, shall we say,
So there is there's a difference there, right, So if

(04:47):
you're a bank, you're actually sort of you basically have
a license to print money effectively, right, But if you
are a game studio, you don't really have that, And
so they do need the cash flow that they general
right from the currency of the of the sales of
the virtual currency to basically pay for stuff like salaries
and costs and all that kind of stuff inside of

(05:07):
the game and the pure interest that might generate might
not be enough relative to that because it's still a product.
So I see it's much more likely that they might
partner with a set of companies that are going to
issue these table coins and they might be sharing maybe
the yield from it or something like that.

Speaker 4 (05:24):
So we should be expecting that they might either be
a consortium.

Speaker 3 (05:28):
Also, don't forget, you know, we should expect every major
bank in the US, maybe even smaller banks to want
to issue their stable coins.

Speaker 4 (05:35):
They're going to want to cut business deals.

Speaker 3 (05:36):
On the distribution for them, right, So again, you know,
like and if you might remember in the early days,
you know, like PayPal and Venmo and all these platforms,
they actually shared commissions in some way, right for customer
acquisition and so on. So so this is interesting and
I see this more as a business model enhancement for
many of those games studies that aren't thinking that way

(05:56):
unless they're thinking Web three native like animal brands, right,
the local brands. You know, we're issuing our own stable coin,
and that's a different story because we're in the field
of that, and so we might be working with games
companies like this.

Speaker 4 (06:09):
But if you take two for instance, you might want to.

Speaker 3 (06:12):
You know, you're now basically valuable as a customer acquisition
tool for banking clients, so you could generate more revenue
by some people saying, hey, you know what I can
onboard you almost like a credit card, right, Like credit
card companies are amongst the highest paying because of sort
of UA companies out there right now. Because you know,
every customer in your game is now a target, it

(06:34):
could really expand the revenue and the reach for those games.

Speaker 4 (06:37):
So I think that's more likely for most of them.

Speaker 1 (06:39):
Okay, well, I want to play another clip for you
because I think it flows more into the validity of
what's what could happen here within the gaming ecosystem.

Speaker 4 (06:48):
Take a look.

Speaker 5 (06:50):
I think the GTA is going to crash crypto because
you think about a crypto is an attention economy, and
what we're going to see with GTA is an attention
vacuum that basically we've never seen before. We able to
cash out my crypto for Shark cards in GTA six,
and so it'll actually just be a better trade to
buy Shark cards at that point. And GTA six launches
this December, so I'm trying to be out of crypto
by December.

Speaker 1 (07:11):
Shark cards. If you think about Shark cards, which is
obviously a huge ecosystem with n GTA, what if they
were to take shark cards and say, we're just going
to make those a stable coin.

Speaker 3 (07:21):
Yeah, so I'm going to go out on the limon
say no, no, okay, all right, so so and just
don't get me wrong, Shark cards certainly, you know, have
tradeability value if they were validated like this by TAK two.

Speaker 4 (07:34):
But Take two is not thinking this way.

Speaker 3 (07:36):
So it's important to understand that Take two is a
product company, and just thinking of their product is I'm
offering a service and you're paying for the service. The
other comment around, I'm going to cash up and sell
on my crypto to buy short cards. Well, I mean
you can do that, but I think you are actually
somewhat in the minority of that. Good luck with that.
Having said that, just another correction. You know, like when

(07:56):
we last time were on the show, you know, this
was before Take to make the announcement, because you know,
everyone thought you were going to come out around September October,
and now it's going to come out in May at least,
that's what they've said. By that time, it's entirely possible
that you know, clarity or markets actor, so those ones
are going to actually be already out, and therefore there is.

Speaker 4 (08:19):
No legal reason allowed, right okay.

Speaker 3 (08:22):
And I think also a lot more people will be
familiar with it, because sure pitcoin's gon to be one
hundred and fifty to two hunred thousand dollars by the end
of the year, then there's gonna be a lot more
people entering this space.

Speaker 1 (08:29):
Just no doubt. Yeah, no doubt. Well, and I think
you look at the potential here, we saw a movement quickly.
This is just you know, a small gaming company that announced, hey,
we're going to start to integrate stable coins. And when
they did that, here was the h here was the
response from from the market. Of course, the stock jumped
eight percent. Maybe this is just the beginning of something

(08:51):
early because even to your point is that, yeah, okay,
Take two is not going in this direction just yet.
But there's a lot of gaming companies. Granted they are
the you know, eight hundred pound gorilla, but the point
is is that they could change, they could shift into
this model, especially if they start seeing others showing some
success with that.

Speaker 3 (09:10):
And I do think they will do it because it's
a superior business model. None of those big game companies
free to play and freemium they went.

Speaker 4 (09:18):
There five years later.

Speaker 1 (09:19):
You think that maybe large retail might actually bring stable
coins first, or do you think it would be gaming
that could bring stable coins to their ecosystems first.

Speaker 3 (09:27):
Game companies have a potential, and other territories like Japan
and Korea for instance, haven't established stable cunt framework. Even
Singapore doesn't have a framework at this moment in time. Yeah,
so there's an interesting, funny sort of situation where the
US was one was behind, it is now actually lead
form most of the nation.

Speaker 1 (09:45):
Well, you look at a couple of things. I want
to show two quick things here in reference to stable
coins obviously launching here on August first within Hong Kong,
so this is now moving even though that has been
behind now what we've seen with the United States then,
And you also look at the capacity of how the
use case is going to be picked up. So it's
already being mandated. There's going to be a little bit

(10:07):
of catch up, I guess to a certain extent around
where the world market is going. But you guys are
also potentially launching an ipo and my question. We were
talking about this earlier on another video. We did a
big mega IPO video. Why launch an ipo in Hong
Kong versus here in the United States. Animocha should be

(10:28):
here in the United States. I'm going to try to
help President Trump get you here for your IBO, So
why not?

Speaker 3 (10:35):
So first of all, so the fact that we plan
to go public is not a secret. So but where
we decide to go public is out in the open.
So we haven't the saided to US or Hong Kong.
There's nothing that excludes the fact that we couldn't do both,
because you know, you can do primary and secondary right
And I think Animoka Brands is one of those interesting
companies that actually has a big footprint in terms of

(10:56):
its investments, portfolio and brand name in the usually has
a lot of customers in Asia, and I think there's
something interesting also to be said about Animal Brands as
a gateway for Asia for instance, potentially American investor. But
it does make a lot of sense to consider the
US markets.

Speaker 1 (11:12):
Well, you can have a lot of customers in Asia
and still have all your investors here in the United States,
you know.

Speaker 3 (11:18):
So yeah, and because we have three thousands of shoholders
already post right, So we are just quasi sort of
a public private entity because of our previous days as
a listed company. So we actually know what it's like
to run a public company. Of course we're smaller back then.

Speaker 1 (11:33):
You're going to have a million investors. You're going to
have a million investors if you bring it to the
United States, a million minimum a million.

Speaker 4 (11:43):
Well, I look forward to that. I look forward to.

Speaker 1 (11:45):
So I'm just trying to get you to commit. I'm
just trying to get you to commit.

Speaker 3 (11:50):
Yes, I Unfortunately, I'm not going to commit on anything.

Speaker 4 (11:54):
No comment.

Speaker 1 (11:55):
I understand, I understand. I'm watching a couple of things
that you guys are doing. You guys did your partnership
here with Carrot. There's doing some acquisition or I guess
in some point, I guess buyback. You were talking about
Cultural Treasury. There's like a handful of others out there
that would probably fall into this tower. Token was one.
What are you trying to do with this? And do

(12:17):
you think that these treasury companies in your particular case,
Cultural Treasury, are a fad or do you think this
is something that we're going to see a lot more
of No, I think you're going.

Speaker 3 (12:26):
To see a lot more of it because it's a
nice little bridge between the let's call the TRATFI investor
and cryptoises. And at the end of the day, whether
it's an ETF or company that holds these assets. But
the thing about all coins, particularly whether it's gaming or
whether it's tokens like MCCA or pengu or ap coin
or whatever it is, they actually have ways which you
generate yield and you can trade them and you can

(12:47):
hedge them, make it your stuff. So there's actually an asset.
Crypto as an asset class trades between one hundred fifty
two billion dollars a day, right, so we're talking about
something that it is larger than York Tuck has changed
now doing this these buybacks, However, the tokens themselves haven't
appreciated as much in value because of the narrative. Yet

(13:07):
now you can buy these strong gaming projects at basically
a discount from their investment round, and there's so many
of them. So we're not going to stop at just
these three. Where we did across the ages, we did
my pet Hooligan, which is carried with the tower. We
want to build more of them, and then you know,
there's nothing that necessarily stops us from saying and you
know what, we are the largest gaming investor in Web three,

(13:29):
and we could possibly do a treasury company with all
those gaming tokens eventually in the future together as well. Right,
gaming is about a twenty to twenty two billion dollar
combined market cap in crypto, So you could say it's
small compared to others, but it's you know, it's come
from zero over time. But more importantly, you know, we're
going to get you know, the one hundred billion users

(13:49):
into cryptog and I enter this space because of gaming.
And then you want to take a look at the
good projects and do you want to go and buy
you know, something that could go from ten or twenty
or you know ten, ten, twenty thirty billion that's already
billions of dollars, or there's a chance to buy some
gems in the market that are literally single digit millions
or and and so that's that's just that's just where

(14:10):
we see the opportunity, and we're investors, so we look
for those unities as well. Right, And you know what,
I forgot what who said it, but the famous saying
around like when everyone's running away from something, maybe that's
when you start looking, right, Yeah, so that's exactly what.

Speaker 1 (14:23):
That's that's exactly to get well, I think if you
look at the acquisition plan that you're talking about and
this strategy, this is only going to build up your valuation.
And did you know that when you go IPO in
the United States that your valuation level is going to
be much greater post IPO.

Speaker 3 (14:42):
So first of all, looking at the investments we've done,
you know, for instance, like you know in the US,
we've done a number of treasury deals like DDC, right,
which was a bitcoin one that's done very well.

Speaker 4 (14:53):
Right, We've done a few more right, Like we.

Speaker 3 (14:55):
Can see the valuation premium is given to those companies,
so we certainly have seen that effect.

Speaker 1 (15:00):
Well.

Speaker 3 (15:00):
The other thing for us also is that we want
to be able to tell the story about work three
because right now we're at the stage where we're telling
people about bitcoin and then a little bit of ethereum.
But we know that Web three and blockchain so much more, right,
so they basically open up the gateway for the conversation,
and now we should enter with different type of tokens
and tell them what it's all about and when they
understand that, just like you know, your audience on the

(15:22):
show and other people in the space, when they understand,
you know, they never go back and they say, you
know what, this is great, and so they kind of
come into that. So this isn't just about you know,
basically what makes sense is the investment. This is also
sort of how do we promote the space to the
right people, how do we bring attention to those investors
so they understand that there's a big opportunity here.

Speaker 4 (15:40):
You know, it's had an impact. That's the other thing.

Speaker 3 (15:41):
I mean if you look at Tower, Mike pet Hooligan,
or you know, across the ages, all these tokens have
gone up. In the case of Tower, it's over one
hundred percent. In the case of you know, CTA and
Carrot it's up like thirty percent or something. And again
it doesn't stop there, right, It's just to show that
there is potential momentum out there, an opportunity.

Speaker 4 (16:01):
There's a lot more than that.

Speaker 3 (16:03):
So so we were scouring for these great gyms in
the market right now.

Speaker 1 (16:07):
You mentioned pengu earlier, and of course there's a few
points that are kind of moving right now. Pengu now
reflipping bank. There's a there's a struggle out there. Do
you think pengu will flip Doge? Do you think there's
a possibility for that?

Speaker 4 (16:23):
Ahaha.

Speaker 3 (16:24):
Well, so, first of all, it's important to note that
Luca is an absolute animal in a good way. He's driven,
and so he's not someone that you should bet against,
and we very much betting on him. And you know,
we're investors as well and supporters, you know what. We
like what they're building with abstract. You know, I hold
a bunch of pengous myself, and so a number of

(16:45):
our existing portfolio companies have started building abstract and are
doing well.

Speaker 4 (16:49):
So I would.

Speaker 3 (16:50):
Say, you know, yeah, pay attention, but you know, you
go where essentially the money is.

Speaker 4 (16:54):
And it's no.

Speaker 3 (16:55):
Different than people moving from moving to Dubai right, or
moving to Hong Kong or moving to the U yes
right for opportunity.

Speaker 4 (17:01):
That's kind of how how you can think of it
that way.

Speaker 3 (17:04):
But yeah, so we're very very optimistic about that US
companies are going to succeed. You know, I have a
higher chance because the market is hungry for it. Right,
Why is this market so attractory companies? It is because
investors have been really wanting to invest in this category
but they were effectively disallowed. And also for the foot
gates like you know, Robin Hood etro they all offering crypto,

(17:26):
doing securitized tokens.

Speaker 1 (17:28):
Bengo.

Speaker 4 (17:29):
Exactly exactly.

Speaker 1 (17:31):
Don't bet against Luca. So I'm going to just take
it from that for our audience, because everybody's going to
be looking at that and trying to figure it out.
But you look at this move right here, McDonald's. I
want to kind of show you something. This is did
you know that McDonald's I pod in the United States?

Speaker 3 (17:48):
Yes?

Speaker 2 (17:49):
Yes, My point.

Speaker 4 (17:50):
Being an American company, I'm.

Speaker 3 (17:52):
Messing with it.

Speaker 1 (17:53):
So my point is is that they had their biggest
marketing launch and guess what it was. Minecraft My question
is is there's some potential here of a adult happy meal? Okay,
and if we get into an adult happy meal, one
of the things that could happen right there is that
right there, Yeah, pudgy penguins could get into this.

Speaker 3 (18:11):
So should we expect that, you know, McDonald's one wants
to work with something like pug I think it's entirely possible.
But would they do it, you know, like I would
put it more in the sort of fifty to fifty
sixty forty category rather than the sort of ninety ten things, right,
only because like NFT is about a half a billion
dollars of sales a month still, right, So actually it's
it's good, but for a lot of people it's it's

(18:33):
they've just come around saying, oh, bitcoin is probably real. Okay,
So so when you could go down the next thing
then is ethereum, and then it's like okay, tokens, and
then it's like NFTs understanding that NFTs are actually serious.
And I think that's the other thing, you know, we
think of NFTs as a kind of levered ethereum that
for the crypto market as well. Like if you basically

(18:55):
had a if you if you had you know, when
ethereum was really low, you know, whether it's a board
ape or whether it's a pudgy obviously thought well even
a mecha verse or or you know, an NFT like that,
you would probably how we had more levered effect from
from ethereum than necessarily just holding nakedive theory by itself.

(19:15):
But of course it's for certain projects, and we do
believe that the OG projects have that, so you know,
today we also did sort of a little sort of
announcement collaboration with cool Cats and more to come, shall
we say, it's an example how we think the timing
is now.

Speaker 1 (19:31):
So, so I was going to go back to a
statement that you made on Twitter just this morning before
we were preparing for this, and it was referencing the vault.
Explain to me a little bit of what you guys
are doing over there.

Speaker 3 (19:42):
Then one of the next big important frontiers of the
space is r WA. So when you think about what's
the biggest r WA in crypto today, it's stable coins.
So it's an investor grate basically a vault, you know,
back by a figure. You basically have you know, basically
billions of dollars or ready of real assets where you
can bring institutional investors into the space and you know,
they're also sec registered yielding sort.

Speaker 4 (20:03):
Of assets as well.

Speaker 3 (20:04):
Uh, you know, and you have things like you know,
home equity loans and so on. Like that's the type
of stuff that let's call the traditional guys understand and
they go, oh, okay, tokenizing that that kind of makes sense, right,
we might understand you know, the network effects and the
meaning of things like meme coins and game tokens. But
when it comes to sort of real world assets, that's
where tradifi goes. Oh okay, when you look at intellectual property,

(20:26):
when you look at gold, when you look at you know,
home equity loans or even student loans where we're kind
of getting into as well as our WA's for instance,
dwarf for the balundy of bitcoin.

Speaker 4 (20:36):
Yeah, for the time, right, it's a completely dwarfs, no doubt.

Speaker 3 (20:40):
We're all excited about bitcoin hitting two trillion market cap
three goal that twelve.

Speaker 1 (20:44):
Billion trillion, right yeah.

Speaker 4 (20:46):
Yeah, but everything else is like one hundred trillion trillion
right right. Of course, we're going to open up the
Asian market. It's going to be very exciting.

Speaker 3 (20:54):
Listen.

Speaker 1 (20:54):
Yeah, So it's been great having you on today. Thank
you so much for coming in. I know your connections
are kind of in and out there, but we do
appreciate you taking the time today. So thanks again. All right,
you guys, if you're not in our Diamond Circle, that's
our own private group you guys can join for absolutely free.
All you have to do is click the link down below.
It's very easy, and of course follow me out there

(21:15):
on x it's just at Paul Baron. I'll catch you
next time, right here on the Paul Baron Show.

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