The original text comes from the blog of Yat Siu, co-founder and CEO of Animoca Brands, translated by Bai Ze Research Institute, slightly deleted.

Just 5 months ago, I wrote about the fallout of the Russo-Ukrainian war, rising inflation, and the collapse of cryptocurrency projects caused by many irresponsible actors.

Now here I am again.

Our exposure to FTX is limited to non-substantial trading balances, and we will continue to invest and support the crypto ecosystem, as we have recently invested in Cool Cats, VCORE, Viker, and a few projects that have not yet announced investments. Animoca Brands' financial position remains strong, with a cash balance of approximately $214 million, digital assets of $940 million, and off-balance sheet digital reserves of $3 billion, as well as a portfolio of approximately 380 of the world's best Web3 and blockchain companies portfolio. (Opensea, Dapper Labs, Sky Mavis/Axie Infinity, The Sandbox, etc.)

To be fair, many people in the company, including myself, have been very disturbed by the FTX events of the past few days, but I am not particularly upset by the drop in the price of the token. In fact, the market has been more resilient lately than it was 5 months ago.

However, I am disturbed that the important work of decentralizing the web and freeing it from authority and abuse of power is once again hindered by a very small number of irresponsible actors.

These participants neither represent the crypto industry nor our vision - to make the world a better place, to make the distribution of value fairer, and to allow us to create and own our digital assets. The damage our industry has suffered over the past week has certainly been devastating, but not as severe financially as it was about five months ago. However, this is an attack on the reputation of our industry and the goodwill we are building towards outsiders.

We should be talking about protecting creators' royalties, and we should be talking about how educators can contribute to the growth of our profession. We should be talking about how all of us, especially the 380+ companies in our portfolio and their amazing products and services, are using Web3 to make the world a better place.

Those of you who continue to build the Web3 ecosystem in this slightly cold winter are all unsung heroes in this industry. They probably won't talk about your work, or how creators, gamers, and educators changed their lives through NFTs, or talk about the many cool and noteworthy things that are happening right now. It may be disheartening that our industry has suffered yet another reputational setback, but the work you do is not only appreciated and valued today, but even more so for tomorrow.

It might be tougher now, and you might feel discouraged, but the work we do now is contributing to our digital future.

Certain crises, such as the current FTX crisis and other larger ones, including Lehman Brothers, have resulted from the destruction of the industries they touch by many powerful elite players, often through fraud to achieve zero-sum outcomes.

This is where Web3 can change, and we must also continue to educate the world about its importance. Through Web3, NFTs, and the Open Metaverse, everyone, everywhere you impact is a victory worth celebrating. We don't play games to beat each other, we play games to better ourselves and help each other in the collaborative spirit of Web3 as we share the web we build together.

"History never repeats itself, but it rhymes." —Mark Twain

The devastating dot-com bubble of 2000 didn’t kill the booming internet; the dire 2008 financial crisis didn’t stop the explosive growth of the internet, smartphones, or mobile games; and the crypto bear market of 2018 didn’t extinguish the flames of cryptocurrencies.

All of these events seemed like brutal endings at the time, but if you could go back to 2000, 2008, and 2018, you'd have no trouble picking the - it seemed at the time - doomed side.

Likewise, current market conditions will not kill Web3, open metaverses, NFTs, or cryptocurrencies. While there will be bumps, cyclical changes, and the occasional black swan event along the way, anyone with a broader and longer-term perspective can clearly see the future.

We firmly believe that Web3 represents the natural evolution of the Internet, the future of digital property rights and resulting economic freedom, and will empower billions of online users across a series of interconnected open worlds and platforms.

The incredible amount of new talent, new companies, and new brands that continue to enter the crypto industry despite the perils is evidence of an important long-term indicator, the strong growth of the Web3 market and Web3.

I want to once again express my deepest gratitude for the support Animoca Brands has received from shareholders, partners, and I am especially grateful to our growing company, employees and Web3 community who all share the same vision -According to the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Participate in any illegal financial practice.

risk warning:

According to the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Participate in any illegal financial practice.