Latest / The Paul Barron Crypto Show / Largest Gaming Fund EVER Tokenized on Solana!!🚀Animoca Brands Yat Siu INTERVIEW🔥

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Largest Gaming Fund EVER Tokenized on Solana!!🚀Animoca Brands Yat Siu INTERVIEW🔥 · The Paul Barron Crypto Show

0:00
Speaker 1: All right, guys, we're out today, but I wanted to
0:02
Speaker 1: jump in on the news and this is one of
0:04
Speaker 1: the things that obviously will be diving in deep with
0:06
Speaker 1: yachts Sue talking about Animoka Brands and their tokenization and
0:11
Speaker 1: what this is going to look like. So welcome into
0:13
Speaker 1: the show. Let's just go ahead and get started. I
0:16
Speaker 1: want to break in, bring in Yatsu who is the
0:19
Speaker 1: CEO and chairman over at Animoka Brands. Great to have you.
0:22
Speaker 2: Back, Great to be here again, Thanks for having me.
0:26
Speaker 1: So yeah, Sue, I think you had some big announcements
0:30
Speaker 1: over at Token twenty fourty nine, so it was like
0:33
Speaker 1: a litany of them that were coming out, and of
0:35
Speaker 1: course even as we got on here in the pre show,
0:38
Speaker 1: you were announcing some stuff. I didn't even realize it happened.
0:41
Speaker 1: So let's just jump over to a couple of points
0:45
Speaker 1: I want to get on and that is Token I shares.
0:48
Speaker 1: How will this function? Right now? What are you guys
0:50
Speaker 1: doing in terms of setting this up?
0:53
Speaker 2: Animocal Brands was actually not really involved in the sort
0:57
Speaker 2: of share production of this. Basically it was you know,
1:00
Speaker 2: Solana and Republic organizing secondary shares of their own. They
1:04
Speaker 2: ended up pushing that over to tokenizing it on Solana,
1:09
Speaker 2: which will happen shortly under the Republic platform. And so
1:12
Speaker 2: this is obviously a security and so what that allows
1:15
Speaker 2: people to do is to actually trade Animoca shares in
1:18
Speaker 2: the secondary markets. And just to be clear, this does
1:21
Speaker 2: not replace, you know, an ipo, but it is a
1:24
Speaker 2: way for people, especially those who are already in the
1:27
Speaker 2: crypto markets, to own a piece of Animoka. One. Anamoka
1:32
Speaker 2: secondary shares are amongst one of the most highest trades
1:35
Speaker 2: traded shares on secondary platforms today, right right, And so
1:38
Speaker 2: that's kind of things that we actually have thousands of
1:40
Speaker 2: shareholders that you know, we you know, we don't know,
1:43
Speaker 2: so we're we're not like a classic sort of you know,
1:46
Speaker 2: venture capital story, so we're quite widely held. And so
1:49
Speaker 2: the second thing, though, is that when you do a
1:51
Speaker 2: transaction on secondary shares in the traditional way, whether it's
1:54
Speaker 2: through a hive or a forge or those kind of guys,
1:56
Speaker 2: it doesn't happen instantly. The settlement isn't right away. It
1:59
Speaker 2: takes one month or two months sometimes like it takes
2:02
Speaker 2: a really long time, in some cases almost ninety days
2:05
Speaker 2: because because you know, not just but the money but
2:07
Speaker 2: also because of the fact that you have to source
2:09
Speaker 2: them and do stuff, it's inefficient, right. And here, basically,
2:12
Speaker 2: through a tokenized platform, you can actually essentially trade secondary
2:16
Speaker 2: shares almost like a stock market, like most of the
2:19
Speaker 2: young people are already. Generally the youth is more comfortable
2:22
Speaker 2: trading in crypto or crypto like assets rather than you know,
2:26
Speaker 2: a share account, right, and I think you know, trading
2:28
Speaker 2: platforms like etour or robin Hood have made it an
2:31
Speaker 2: experience that is similar to that, right, where people don't
2:34
Speaker 2: really need to sort of have custody of the shares
2:37
Speaker 2: of traditional sense. They just want to trade them and
2:39
Speaker 2: have essentially ownership rights over them. But you know, basically
2:42
Speaker 2: are okay to custody it with a party that manages
2:45
Speaker 2: for them. And so that's basically what this is, right.
2:48
Speaker 2: You can trade a tokenized asset that you can fully own,
2:51
Speaker 2: but it's essentially custodied with republic on the Solanta blockchain.
2:55
Speaker 2: And why there's a lot of blockchain because you know,
2:58
Speaker 2: a lot of you know, the highest amount of I
3:00
Speaker 2: guess dex trading happens on the Solana platform. And so
3:03
Speaker 2: now I'm we're ready on Solana. I would like to
3:07
Speaker 2: buy some shares in a company like Animoca, and you know,
3:10
Speaker 2: this would just the deeper be the first of many
3:12
Speaker 2: I would assume, and then from that I can basically
3:16
Speaker 2: take my token gains and buy shares in the company.
3:19
Speaker 2: And because it's tokenized, it's kind of a similar experience.
3:22
Speaker 2: Now because there's a security, I can't just sort of
3:25
Speaker 2: trade it like like like a mean coin, but I
3:28
Speaker 2: can register and do the KYC so that I qualify
3:31
Speaker 2: to buy the share is much like you do judicial markets,
3:34
Speaker 2: but in this case it would be basically all on chain,
3:37
Speaker 2: so it's kind of it's kind of exciting. I also
3:39
Speaker 2: like the fact that we're the first company to do
3:41
Speaker 2: it right, irrespective of how it trades, because if there's
3:45
Speaker 2: one company in the world that should be leading the
3:47
Speaker 2: charge to demonstrate what it would be like to tokenize equity,
3:50
Speaker 2: I think it should be us, because you know, a
3:52
Speaker 2: company that's in the interestction both. You know, it's kind
3:54
Speaker 2: of like eat your own dog food. Right. You talked
3:57
Speaker 2: about the world how should tokenize everything? Well, you know
3:59
Speaker 2: which to be supportive of tokenizing our own shares too.
4:02
Speaker 1: Do you feel like this model will go the x
4:06
Speaker 1: stocks method or do you think it'll go into more
4:08
Speaker 1: of a KYC region locked approach.
4:11
Speaker 2: It will have to go into a KYC region locked approach,
4:15
Speaker 2: except that different regions can be done on platforms like
4:18
Speaker 2: this around the world. So Republic is obviously American, they
4:21
Speaker 2: serve they can serve as many other countries. Obviously, we
4:24
Speaker 2: don't want our shares to be held by you know,
4:26
Speaker 2: basically people in sanction countries like North Korea, so obviously
4:30
Speaker 2: that's important. That's why the public will hopefully take care
4:33
Speaker 2: of that in a really good way. And you know,
4:34
Speaker 2: there's a platform they're already done securitized sort of assets
4:38
Speaker 2: of different types. I'm particularly excited of what it means
4:40
Speaker 2: for startup funding. When someone does a new capital raise
4:43
Speaker 2: at a higher valuation, then you know, seed investors might
4:47
Speaker 2: have the opportunity to sell their shares at a you know,
4:50
Speaker 2: maybe maybe a slight discount around but still, yeah, they
4:54
Speaker 2: can get liquidity. So it's I think it's a great
4:55
Speaker 2: new innovation for the space that will bring in more
4:57
Speaker 2: capital for seed investing, which is of course what we
5:00
Speaker 2: want to promote with our investing approach.
5:03
Speaker 1: This is really kind of a next evolution too. I mean,
5:05
Speaker 1: you look at some of the platforms like angel and
5:07
Speaker 1: many of those that have tried to foster seed investing.
5:11
Speaker 1: This pretty much supplants all of that activity and gives
5:14
Speaker 1: it really a lot more credibility and much more reach overall.
5:19
Speaker 2: I think we're sort of setting the path. I know
5:21
Speaker 2: that I can't say who, but a lot of them
5:24
Speaker 2: have approached me and said, oh, can I do that too?
5:27
Speaker 2: Is that interesting way? There's a whole lineup with the spinning,
5:29
Speaker 2: and I've done quite a few investing in angelists, but
5:32
Speaker 2: I stopped doing as much as I used to, not
5:35
Speaker 2: because the companies aren't interesting, but because you know, it
5:38
Speaker 2: wasn't very clear to me how there could be an
5:40
Speaker 2: exit in the near term. And also you can't really
5:44
Speaker 2: build a relationship with the company direct. And I also
5:46
Speaker 2: don't know who else owns the shares. That's the other exactly.
5:49
Speaker 2: You know, there's no ledger. I don't really it's just
5:51
Speaker 2: it's kind of still fun and manage, so it's kind
5:53
Speaker 2: of you know, I can't build a community around Angelist
5:56
Speaker 2: of in that sense, but with tokenization I can because
5:59
Speaker 2: you know, if you want to share in Animoka, and
6:01
Speaker 2: I own to share in Animoka, and it's tokenized, I
6:04
Speaker 2: can prove that in my wallet ownership as well, and
6:06
Speaker 2: you can build entire communities. So there's a lot more
6:09
Speaker 2: power in that, and so it's pretty exciting. Yeah.
6:12
Speaker 1: And I think as we get you know, obviously the
6:14
Speaker 1: Clarity Act and some other things here within the US,
6:17
Speaker 1: that's obviously going to open things up, you know for
6:20
Speaker 1: more investment opportunities for sure. Uh what about will there
6:25
Speaker 1: be a white list for like Mocha or sandholders?
6:28
Speaker 2: You can throw that out one of the things. Yeah.
6:31
Speaker 2: One other things that I would love to see, whether
6:34
Speaker 2: it's now or in the future, is the ability for
6:37
Speaker 2: people to be able to, for instance, you know, use
6:40
Speaker 2: their tokens such as Mocha or sand to buy anymocaat
6:43
Speaker 2: like why not? Yeah, And that's that's exciting, right, And
6:47
Speaker 2: you know, because it's tokenized stock, there's no reason why
6:51
Speaker 2: you couldn't flip it over from stock to sand tokens
6:55
Speaker 2: or Mogo tokens, right, right, and and exactly, and when
6:58
Speaker 2: you look at the trading volume, you know, not even
7:01
Speaker 2: at the peak trading volumes because of billions a day,
7:04
Speaker 2: but even in the sort of so called quieter markets
7:07
Speaker 2: of trading volume between Mooka and Sand we're talking twenty
7:10
Speaker 2: thirty forty fifty million dollars a day, you know, I
7:13
Speaker 2: mean traditional stocks don't trade that that much, right, you know,
7:17
Speaker 2: like that are media well sized. So there's actually paths
7:21
Speaker 2: of liquidity for sort of sort of equity holders if
7:25
Speaker 2: they wanted to as well, because there's going to be
7:27
Speaker 2: a market both ways. So so I mean, again, this
7:29
Speaker 2: is all at this point speculation in the sense that
7:32
Speaker 2: this is not confirmed and it's it's but it's a
7:34
Speaker 2: really really sort of wonderful idea that's evolving. Then you
7:37
Speaker 2: can totally imagine how you could pay dividends in tokens.
7:40
Speaker 2: I mean, we're sitting on billions of dollars of tokens
7:42
Speaker 2: if you invest it in. Yeah, huge, right, And there's
7:45
Speaker 2: no framework of paying dividends in tokens as an equity
7:48
Speaker 2: company because you can't do that, and it forces us to,
7:52
Speaker 2: you know, if you wanted to pay dividend, it forces
7:54
Speaker 2: us to, you know, sell the tokens to difidend cash
7:56
Speaker 2: because that's the only way to do it. But if
7:58
Speaker 2: it's tokenized, we can give you an option to take
8:01
Speaker 2: a token. I mean it's almost like a menu to say, hey,
8:03
Speaker 2: you know, what do you own animal for shares will
8:05
Speaker 2: be a difidend. Choose your token. I mean, I don't know,
8:07
Speaker 2: like so many cool things you could do, right and anyway,
8:10
Speaker 2: this is this is why it's so exciting. Said, Look,
8:12
Speaker 2: we're going to have AI agents trade for on our
8:14
Speaker 2: behalf twenty four seven anyway, right, and AI agents are
8:18
Speaker 2: not really in a position to trade stock because they can't, right,
8:21
Speaker 2: And if they were able to, it'll have to be
8:23
Speaker 2: something very proprietary that's attached to whatever trading platform you're on,
8:27
Speaker 2: because it's not you know, able to do in a
8:29
Speaker 2: blockchain decentralized manner. So how do you access the a
8:33
Speaker 2: agentic AI world. Well, it's going to be through a token.
8:36
Speaker 2: And you know, if you have a token that represents
8:39
Speaker 2: your equity, then that's even better because then you can
8:42
Speaker 2: open up that entire market, you know, as an RWA,
8:45
Speaker 2: rather than just trading mean coin or bitcoin or a
8:48
Speaker 2: theorem or mocha or sand which are great assets, but
8:50
Speaker 2: you're limiting yourself.
8:52
Speaker 1: Hey, I'm showing. I want to show one of your tweets.
8:55
Speaker 1: This one was in reference to the gaming platform and
8:58
Speaker 1: the gaming token. First of all, the immediate impact of
9:02
Speaker 1: the chart influence that ad it's good for Web three gaming,
9:05
Speaker 1: I think in general. But when you look at that,
9:08
Speaker 1: what's happening there? Give me some insights to this announcement.
9:12
Speaker 1: What do you think this does in terms of impacting
9:14
Speaker 1: Web three.
9:15
Speaker 2: I mean I kind of think of it as a
9:17
Speaker 2: Bitcoin etf moment for Web three gaming, right, you know,
9:22
Speaker 2: not in the senset is as an index. But you know,
9:25
Speaker 2: institutional adoption and awareness of basically blockchain and Web three
9:29
Speaker 2: gaming is not present on the NASDAK or in public
9:32
Speaker 2: markets because there's no company that represents that. Right. The
9:35
Speaker 2: second thing, of course, is that you know, it required
9:37
Speaker 2: institutional adoption of bitcoin and ethereum to basically get the
9:42
Speaker 2: price to where it is today and the attention that
9:44
Speaker 2: it has and becoming an institutional product. So we've got
9:46
Speaker 2: to do this for all the other assets as well, right,
9:48
Speaker 2: and you know we shouldn't be sitting still. So I
9:49
Speaker 2: think the innovation here, and by the way, this is
9:53
Speaker 2: our big belief in THATTS. I mean, we've covered and
9:55
Speaker 2: invested in like a dozen dats and of course now
9:58
Speaker 2: I've become a fairly substantial share older in Alpha ton
10:01
Speaker 2: as a result of that. As well, you know, led
10:03
Speaker 2: by Britney Kaiser, who obviously is quite well known in
10:06
Speaker 2: the industry, is that if you're if your token is
10:08
Speaker 2: not in a data of some sort, whether it's you know,
10:11
Speaker 2: a basket or a you know, basically dedicated that then
10:14
Speaker 2: it won't be able to have access to the institutional
10:18
Speaker 2: capital flows. And I think a lot of people who
10:20
Speaker 2: are not in the traditional capital markets but really only
10:24
Speaker 2: are in the crypto markets don't understand that this is necessary.
10:28
Speaker 2: And it's not because a person finds it easier to
10:31
Speaker 2: buy in the stock market, because honestly, you know, you
10:33
Speaker 2: could buy it and put it in coin base and
10:35
Speaker 2: it's not that hard, right, Actually, what is really a
10:38
Speaker 2: challenge is who's accountable? Right, So you know, if you
10:41
Speaker 2: go to a fund manager and say, I'll go to
10:43
Speaker 2: buy some ethereum, who's accountable for the ethereum that you
10:46
Speaker 2: just bought? Uh, it's not metalic, it's I don't know,
10:51
Speaker 2: or for bitcoin. Yeah, there's this guy called Satoshi I
10:54
Speaker 2: heard about, but you know, I don't know who is, right, Like,
10:57
Speaker 2: that's really hard to explain to someone who's like, why
11:00
Speaker 2: did you buy this? However, if Michael Saylor is behind it,
11:04
Speaker 2: so to speak, or Tom Lee is behind it, so
11:06
Speaker 2: to speak. Right, then you going to an entity and
11:09
Speaker 2: that entity has done the homework. I vouch for that
11:13
Speaker 2: because my reputation is on the line. So, whether it's
11:16
Speaker 2: an ETF or digital acid treasury company or whatever structure,
11:19
Speaker 2: it has to be essentially legitimized in the public markets
11:22
Speaker 2: because they have high scrutiny. You have audits, you have accounting,
11:25
Speaker 2: you have the liability if you basically don't do your
11:28
Speaker 2: job right. So Gamy now being part of a Nasdaq
11:32
Speaker 2: public company is actually a big step in I think
11:37
Speaker 2: what's happening in Web three gaming. I think this will
11:40
Speaker 2: be the beginning of many of those. Because the other
11:42
Speaker 2: thing is this digital aid treasure companies are going to
11:45
Speaker 2: have to evolve to have actual revenue and utility. It's
11:48
Speaker 2: not good enough to say, let me just buy tokens
11:51
Speaker 2: simil it. I got to drive some revenue and staking
11:53
Speaker 2: rewards are like two three percent, not bad, but hey,
11:57
Speaker 2: an operating business that's profitable gaming is profitable generating positive
12:01
Speaker 2: cash flows. You add on top of that. Basically that's
12:05
Speaker 2: great from an accumulation standpoint, because now you can clearly
12:07
Speaker 2: demonstrate that you are covering operating costs and making profit
12:11
Speaker 2: and accelerating that of course is good for the data
12:14
Speaker 2: because as it buys a token, it increases and I
12:17
Speaker 2: think you know, you know, the the the alphaton hasn't
12:21
Speaker 2: yet started buying the token because it announced the intention,
12:23
Speaker 2: and it goes to the typical period as it does
12:26
Speaker 2: for closing, which means that you know, it's yet to
12:29
Speaker 2: buy tokens. So this price rise is basically coming from
12:33
Speaker 2: the market anticipating it and understanding what's happening and being
12:36
Speaker 2: excited about the long term prospects. Right, and again, the
12:39
Speaker 2: market typically never lies, right, it shows attention that word's going.
12:43
Speaker 2: We just need a few more gaming tokens to do
12:44
Speaker 2: what gaming did in terms of and who knows how
12:46
Speaker 2: much more it will go to go up and confidence
12:50
Speaker 2: will be restored fairly quickly.
12:51
Speaker 1: Let's jump over to what's going on in the change
12:56
Speaker 1: up over on Sandbox and obviously the new leader ship,
13:00
Speaker 1: the launch of sand Chain. All of this happening right
13:04
Speaker 1: now as literally as Talken twenty forty nine is going on.
13:07
Speaker 1: What can you share with us that is new on that.
13:10
Speaker 2: People talk about new leadership, but actually it's led by
13:12
Speaker 2: seb so right, Sebastian Bolget. So it's actually not that
13:17
Speaker 2: neutral sounds it's actually you know, co founder of Sandbox, right.
13:21
Speaker 2: And you know, you may recall there was some news
13:25
Speaker 2: about a month ago around oh, restructuring a sandbox, and
13:28
Speaker 2: you know, someone ended up sort of posting some stuff
13:30
Speaker 2: and you know, everyone loves Everyone loves loves a big
13:33
Speaker 2: SOB story about how, you know, like a disaster and
13:36
Speaker 2: so on, right, But there was a big plan in
13:38
Speaker 2: the works, and the plan in the works was that
13:40
Speaker 2: seb was basically going from Sandbox over to run the
13:43
Speaker 2: sand Chain, which was making it more expansive, but it
13:45
Speaker 2: was kind of top secret, and so we kind of
13:48
Speaker 2: caught in this interesting sort of catch twenty two. It's
13:50
Speaker 2: like we do we jump the gun? No, because we
13:53
Speaker 2: were making preparations to announce it a token, right, and
13:56
Speaker 2: so obviously unfortunately, you know, we weren't able to sort
13:59
Speaker 2: of tell people, hey, don't worry about it, wait a month.
14:03
Speaker 2: But now we were able to announce it, right, And
14:04
Speaker 2: so sand Chain is really that next evolution. But Sam
14:07
Speaker 2: running sand Chain actually expands the universe from you know,
14:11
Speaker 2: basically you know, still serving the creator economy, but now
14:14
Speaker 2: going much deeper in many ways of Sandbox metaverse interface,
14:17
Speaker 2: which is like minecrafty in Rodbox, which of course is massive,
14:22
Speaker 2: was limiting in terms of outreach. Limiting. I mean that
14:26
Speaker 2: we're basically saying you could be a creator on Sandbox
14:29
Speaker 2: within the framing of the Sandbox metaverse as in the
14:32
Speaker 2: Sandbox game, and that's great, but it had actually some limitations.
14:36
Speaker 1: The other thing that I was I thought was interesting
14:38
Speaker 1: was let me share my screen here. In my opinion,
14:42
Speaker 1: one of the things that we've been kind of interested in,
14:44
Speaker 1: and that is under the new leadership. One of course,
14:47
Speaker 1: was the mobile element, which is something that we've said, hey,
14:50
Speaker 1: this has got to happen eventually, but now it's going
14:52
Speaker 1: it looks like it's going to actually occur with the
14:55
Speaker 1: new leader there with Robbie. How fast have you guys
14:59
Speaker 1: pretty much just said, hey, we're gonna We're going to
15:02
Speaker 1: pull the shackles off of the Sandbox team and let
15:05
Speaker 1: them run or what was the plan here in terms
15:08
Speaker 1: of new innovation.
15:09
Speaker 2: The Sundbox probably was shackled in a way. To be frank,
15:14
Speaker 2: you know, the founder has always wanted to build something
15:16
Speaker 2: bigger with sound chain and no mobile experiences. Definitely a priority.
15:22
Speaker 2: You know, I don't want to jump the gun, but
15:24
Speaker 2: you should be seeing stuff soon, is what I can say.
15:27
Speaker 2: It's going to be very good that new evolution. Right. So,
15:30
Speaker 2: so a lot of things happening there.
15:32
Speaker 1: Well, and I think you look at what's happening in
15:34
Speaker 1: Web three. You have to jump to this story right here.
15:38
Speaker 1: And this is kind of our big topic today of
15:41
Speaker 1: what I want to go to. Let me share my
15:42
Speaker 1: screen there. And this, of course is EA now being
15:46
Speaker 1: acquired by the Saudis. This is the largest ever private
15:49
Speaker 1: equity buyout. This was crazy. Is there any particular EA
15:54
Speaker 1: franchise that you think is going to at least going
15:58
Speaker 1: to a Web three route anything that you're watching right now.
16:01
Speaker 2: Well, first of all, I think all of them are
16:03
Speaker 2: quite ideal to be round, right. However, we also have
16:07
Speaker 2: to look at what asset asset type that EA has
16:10
Speaker 2: that is not just compatible but also easiest to control. Like,
16:12
Speaker 2: for instance, everyone's super excited about FIFA. Totally understandable. How
16:16
Speaker 2: with FIFA you have to work with you know, licensing,
16:19
Speaker 2: it's not exactly you know, one hundred percent theirs right,
16:22
Speaker 2: that kind of stuff. But then if you look at
16:24
Speaker 2: something like the SIMS, which isn't is something that is
16:27
Speaker 2: entirely owned by you know, you know, by by by eya.
16:32
Speaker 2: Then yeah, maybe you could take an asset like that
16:34
Speaker 2: and create like a tokenized version in the future. But
16:37
Speaker 2: you know, having said that, I actually don't think that
16:39
Speaker 2: that's really in the highest framework of thinking right now
16:42
Speaker 2: for EA. I think the toganization efforts will come much
16:45
Speaker 2: more from other companies or the ones who make mods.
16:48
Speaker 2: But I think it's a very polish signal in terms
16:50
Speaker 2: of gaming. For a couple of reasons. One obviously demonstrates
16:54
Speaker 2: the value of the gaming ecosystem. I mean, fifty yeah,
16:57
Speaker 2: well I thought it was fifty five billion, but anyway,
16:59
Speaker 2: somewhere between fifty two fifty five billion, that's like, you know,
17:01
Speaker 2: a huge number. It almost feels like a couple of billions,
17:04
Speaker 2: just a rounding error, which in this method is right,
17:07
Speaker 2: So just demonstrates how big it is. The other thing
17:09
Speaker 2: is that if you look at what happened to take
17:10
Speaker 2: two stock, right that basically you know, went up like
17:13
Speaker 2: you know, almost like five or ten percent, which in
17:15
Speaker 2: their market cap is pretty big. And then I think
17:17
Speaker 2: the other thing that's understated is that it's now basically
17:20
Speaker 2: owned by partially a PE firm, and which means that
17:23
Speaker 2: they're going to spry to drive returns, which means that
17:25
Speaker 2: they're going to be more commercial about it, which drives
17:28
Speaker 2: the need to look at things like togonization, blockchain like
17:31
Speaker 2: and they might be looking at it almost more as
17:32
Speaker 2: an our deia of the gaming assets rather than you know,
17:35
Speaker 2: basically a virtual native asset stable coins and gaming having
17:38
Speaker 2: credible potential. And that's not controversial at all, right, because
17:41
Speaker 2: they're trying to drive profits you can expect, and you
17:44
Speaker 2: know gamers might hate that, but they're going to probably
17:47
Speaker 2: increase prices in either a soft or hard way. We
17:49
Speaker 2: don't know someone's going to pay for that acquisition, right,
17:52
Speaker 2: and you basically drive basically line right. You know, I
17:56
Speaker 2: was on your show talking about GTA six back then
17:58
Speaker 2: and saying GDA six is going to trigger that increase
18:00
Speaker 2: price point that won't happen until next year, and actually
18:04
Speaker 2: with YEA, it might happen sooner, like maybe even Christmas. Now,
18:09
Speaker 2: just to be clear, you know, when people do this,
18:11
Speaker 2: they plan to relist the companies so they don't want
18:14
Speaker 2: to take public again. And they recognize the other thing
18:16
Speaker 2: for business of its size, right, and the number of
18:19
Speaker 2: users it can reach. I would say fifty five billion.
18:22
Speaker 2: Is it's a steal, right.
18:24
Speaker 1: Because you've got FIFA over two hundred and eighty millions
18:27
Speaker 1: of sold sims like you mentioned need for speed Man
18:30
Speaker 1: NFL all that. Then you've got the new Project or
18:34
Speaker 1: Rain I guess on sims that were in the middle
18:37
Speaker 1: of building out a lot of infrastructure around economies which
18:40
Speaker 1: could go tokenized, and then you even now with Pokemon
18:45
Speaker 1: Go because this is all part of this. So so
18:47
Speaker 1: this was a tweet that was quite a while ago.
18:51
Speaker 1: This was from Sebastian. It was in reference to the
18:56
Speaker 1: partnership there obviously with the Saudis. Yep, it just seems
19:01
Speaker 1: like there's a lot here because you look at that
19:03
Speaker 1: that goes all the way back to you know, twenty
19:06
Speaker 1: twenty three. So I just wonder if maybe the Saudis
19:09
Speaker 1: were kind of starting to really understand where this market
19:13
Speaker 1: was going, and maybe this is just the pathway in
19:16
Speaker 1: which it's trying to get there.
19:17
Speaker 2: So to be clear, the Saudis, you know, they have
19:21
Speaker 2: this sort of strategy vision to essentially turn Saudi into
19:24
Speaker 2: a much more digital economy. The sort of PIF basically
19:29
Speaker 2: has set aside, it's three three or whatever it was,
19:32
Speaker 2: like the largest gaming fund is the largest gaming fund
19:35
Speaker 2: in history to basically look at investing in games. And
19:39
Speaker 2: they are actually already sharolders in many large public game companies,
19:43
Speaker 2: and they were quite excited about the potential of what
19:45
Speaker 2: ownership means in gaming. So they were already you know,
19:49
Speaker 2: doing participan with Sandbox and as you might recall, you know, Neo,
19:53
Speaker 2: which is also part of Saudi, is a investor and
19:59
Speaker 2: partner and Animal rents. That that was announced like a
20:01
Speaker 2: year and a half ago or something. You think about it, right,
20:04
Speaker 2: a sovereign state organization becoming a shareholder in a private
20:08
Speaker 2: company and a partner to do what this kid is
20:12
Speaker 2: obviously blockchain and Web three related stuff including gaming. So
20:15
Speaker 2: the Saudis have always been quite forward thinking in that
20:18
Speaker 2: in that direction. So I think it's just a demonstration
20:20
Speaker 2: of how they how they've approached it. So you know,
20:23
Speaker 2: and you know, for those of you who may not know,
20:26
Speaker 2: this wasn't the first gaming company they acquired. I mean
20:28
Speaker 2: they had acquired Scope Fleet before, right, and and that's
20:31
Speaker 2: really sort of you know, being very successful for them.
20:34
Speaker 2: I guess gave them an appetite to go even bigger.
20:37
Speaker 1: Yeah, And I think this is it's interesting because when
20:40
Speaker 1: you look at EA, this was a pivotal move that
20:43
Speaker 1: I think starts to really maybe set the stage for
20:46
Speaker 1: where we might see Web three integration coming faster or
20:50
Speaker 1: much like what you mentioned there with GTA six. On
20:53
Speaker 1: the bad news side of things, we've got all sorts
20:55
Speaker 1: of failures happening future Verse fell, paradi combats out Paul
20:59
Speaker 1: saw are a whole litany of different projects that are
21:03
Speaker 1: either shuttering or shutting down. Is there anything that you
21:07
Speaker 1: can give me that is good news? I mean, we're
21:09
Speaker 1: hearing a lot of good news, but those are also
21:11
Speaker 1: bad things that are happening for Web three. Why do
21:14
Speaker 1: you think that is?
21:15
Speaker 2: Well? Look, I mean I think the reality is that,
21:18
Speaker 2: you know, Web three is not immune to business failures
21:21
Speaker 2: or like take it Gamy, I mean, Gamy really sort
21:23
Speaker 2: of had a decline, especially when the tawn ecosystem wasn't
21:26
Speaker 2: sort of sort of as in vogue. Shall we say, right,
21:29
Speaker 2: some builders might just throw in the towel and say,
21:32
Speaker 2: you know, ah, you know, I don't want to do
21:34
Speaker 2: this anymore. That's kind of difficult, right, That does happen right, right,
21:37
Speaker 2: But this team stuck it through and kept fighting and
21:40
Speaker 2: kept going. And you see this also with Soundbox as well,
21:43
Speaker 2: and Steves out there on you know, talking, presenting and promoting,
21:48
Speaker 2: you know, like you need that, right, So I think
21:51
Speaker 2: you've got to look at the team. At the end
21:53
Speaker 2: of the day, most of Web three projects, regardless of
21:57
Speaker 2: it not even being games, are still very much in
22:00
Speaker 2: the startup phase. You know, you got to bring attention,
22:03
Speaker 2: like and I sometimes even get people telling me like,
22:05
Speaker 2: you know, like, are you doing any work? Because it
22:08
Speaker 2: was like out there in sort of conferences. Of course
22:10
Speaker 2: I do work, right, But the point is that, you know,
22:13
Speaker 2: would you rather that I basically just you know, not
22:18
Speaker 2: show up and apparently sort of work behind the scenes
22:21
Speaker 2: and make things happen. That's not how the world works anymore.
22:23
Speaker 2: You know, who are the most successful entrepreneurs today? Like
22:27
Speaker 2: look at Elon Musk. I mean if he was quietly
22:29
Speaker 2: working behind the scenes, would people even care? Right now?
22:33
Speaker 2: So the point all the time, yeah, I mean, if
22:37
Speaker 2: you're a leader, you've got a goddamn lead. Sorry, but
22:40
Speaker 2: that's the fact, right, And now everything is media and
22:43
Speaker 2: you have to understand. Yeah, if you don't, that's the.
22:45
Speaker 1: Problems a problem, but also a benefit. Yeah, for at
22:49
Speaker 1: least for I think the whole idea. If you listen
22:52
Speaker 1: to Gary Vee on his whole momentum economy, that's the
22:55
Speaker 1: way it works is once you get momentum going, then
22:58
Speaker 1: it's the attention STI and you amplify and boom, which
23:03
Speaker 1: is I think what we've seen with some of these
23:05
Speaker 1: projects that unfortunately they've lost the attention. Are you worried
23:10
Speaker 1: about any of the drop off and venture funding? It
23:13
Speaker 1: was down like ninety three in Q two twenty five.
23:16
Speaker 2: It'll first of all, it'd be replaced by to organization.
23:19
Speaker 2: But the second thing I'm not worried about that. The
23:20
Speaker 2: reason I'm not worried about it is that if people
23:24
Speaker 2: get out, it's an opportunity for others. So what happens
23:26
Speaker 2: when you mentioned capital goes out, Well, it's great for
23:28
Speaker 2: companies like us because we get better deals at better prices,
23:32
Speaker 2: right Okay, And then and then there's success, and then
23:34
Speaker 2: everyone starts rolling in and saying do that so so again,
23:37
Speaker 2: you know, but you do need to have conviction, right,
23:39
Speaker 2: and I would argue that many of those projects that
23:41
Speaker 2: have failed, you know how fund and center were the founders?
23:44
Speaker 2: Where were they? Are they are they?
23:48
Speaker 1: It's just that some of them just have to go yes, yes, exactly.
23:53
Speaker 2: And some of them also didn't want to be in
23:55
Speaker 2: the public face, right. They were like, I just want
23:57
Speaker 2: to quietly build and don't bother me. And that's not
23:59
Speaker 2: how it works at least if you want to build
24:01
Speaker 2: in crypto. Right, you've got personalities like Luca. For instance,
24:04
Speaker 2: what is the premium that pengu has over other similar tokens.
24:08
Speaker 2: It's Luca. Okay at you right? Right? So so uh,
24:12
Speaker 2: and we've got some teams like that, like with Anti
24:14
Speaker 2: Chess for instance, it's a smaller project, right, you know,
24:17
Speaker 2: and we've got we've did we did a team that
24:20
Speaker 2: is caido sale five times oversubscribed. And you know, with Chevy,
24:24
Speaker 2: we've got a guy who's front and center. He's he's
24:27
Speaker 2: out there, he's talking all the time about the project. Right,
24:30
Speaker 2: So you got to you got to you got to
24:31
Speaker 2: have that. So I would say, look at the teams
24:34
Speaker 2: who are out there, show how committed there because remember
24:36
Speaker 2: it's not only about whether they're out there shilling or whatever.
24:40
Speaker 2: It's out there putting their name and their reputation on
24:44
Speaker 2: the line.
24:45
Speaker 1: Right, Yeah for sure. Yeah. So it's always great having
24:48
Speaker 1: you on big announcements. So thanks for coming in on
24:51
Speaker 1: the show today. We appreciate it. Thank you for having me,
24:54
Speaker 1: all right, you guys, if you're not part of the
24:55
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24:57
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24:59
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25:02
Speaker 1: X at Paul Baron. We'll catch you next time right
25:04
Speaker 1: here on the Paul Baron Show.