On October 30th, the NEOM Investment Fund of Saudi Arabia pledged a $50M investment in Web3 games producer Animoca Brands, aiming to accelerate Web3 development in Riyadh and the NEOM region.
Investment Catalyst for Web3 Growth
In a significant move on October 30th, the NEOM Investment Fund of Saudi Arabia pledged to invest $50 million in Animoca Brands. This collaboration aims to drive the expansion of Web3 business services.
While the broader ambition is global applicability, the immediate attention will be on fortifying the tech foundation in Riyadh and NEOM. This decision aligns with Saudi Arabia’s larger “Saudi Vision 2030” initiative, seeking diversified economic growth and embracing advanced technological innovations.
NEOM’s Role
NEOM is being sculpted as a “living laboratory,” a testament to what future civilizations could potentially emulate. With aspirations to become a global hub for next-gen tech, the CEO of NEOM Investment Fund, Majid Mufti, emphasized the transformative potential of Web3 technology.
He envisions it not just as a part of NEOM’s tech framework but as a game-changer for global industries. The partnership with Animoca Brands further cements this vision, with plans to establish a center in NEOM to nurture the budding Web3 ecosystem.
Yat Siu, Animoca Brands’ co-founder, envisages this union leading to the “emergence of a new meta-nation,” heralding a new era in tech-driven nation-building. With the Middle East witnessing a surge in tech adoption, NEOM stands out as a beacon, with Richard Bush heralding it as a global model for sustainable living.
Animoca’s In-house Market Making Endeavor
Delving deeper into the realm of web3, Animoca Brands is intensifying its push towards in-house market-making services, targeting startups within its expansive portfolio. The Hong Kong-based web3 investment firm has, in recent times, showcased its market-making prowess to numerous projects it backs, indicating a strategic move to bolster the adoption of this service.
Inside the Digital Asset Team
Established in the early phase of 2022, the Digital Asset Team at Animoca Brands operates in-house, and is currently composed of ten personnel. The team is described by an Animoca spokesperson as essentially a “treasury team”, with added responsibilities such as node setup and hedging to counteract the volatility of the numerous tokens the company holds.
The primary objective of this team mirrors treasury teams in large enterprises, with an aim to optimize the company’s assets. “We’ve essentially internalized the market-making to maintain ample liquidity for certain tokens, ensuring efficiency and scalability,” remarked the spokesperson.
While mainly catered to portfolio companies, the team has also occasionally pitched its expertise to external enterprises aligning with Animoca’s vision, with Open Campus being a notable client.
Financial Health Amid Market Variations
The bear market that surfaced last year has had significant repercussions on numerous crypto companies, Animoca Brands included. Recent reports from the company in May highlighted a 36% plunge in its token reserves, now valued at $2.7 billion. A comprehensive analysis of Animoca’s financial health remains undisclosed, with the latest accounts from 2020 being released only as of June this year.
