Animoca Brands Corporation Ltd, a leading digital entertainment and NFT gaming company, has reported an incredible 401.5% surge in deferred revenue for 2020.
The company’s annual report reveals that deferred revenue increased from $6.947 million to an impressive $27.890 million.
This remarkable growth comes despite the challenges posed by the Covid-19 pandemic.
Animoca Brands has emerged as a leader in the NFT gaming industry
Yat Siu, founder and president of Animoca Brands, acknowledged the difficulties encountered in compiling the annual report, attributing them to the pandemic.
The company’s blockchain/NFT strategy faced integration challenges due to closures and restrictions in several countries where employees resided.
Despite these challenges, Animoca Brands has emerged as a leader in the digital entertainment industry.
The company’s commitment to blockchain and digital assets has contributed to its unique accounting methodology, in which revenue is deferred upon receipt and recognized in profit or loss once services have been provided.
This approach is in line with its forward-looking investments and complex operations.
Animoca Brands’ growth is also evidenced by the number of employees, which has grown from less than 200 to about 1,000 since 2020.
Under the leadership of group president Evan Auyang, the company has made strategic appointments at the executive level, further strengthening its position in the industry.
While Animoca Brands is known for its involvement in blockchain technology, Yat Siu highlighted the company’s investments in artificial intelligence (AI).
In recent years, Animoca Brands has invested in more than 60 AI-related start-ups through its AI accelerator. Some products from these start-ups have been integrated both at the group level and in the company’s portfolio companies.
CEO Yat Siu’s investments in artificial intelligence
Siu believes that blockchain and AI are interconnected and that the medium of exchange between AI agents will be more efficient on the blockchain, using cryptocurrencies.
The company has already seen significant efficiency improvements in the development of products using AI, with some areas seeing efficiency gains of up to 80%.
Animoca Brands sees the potential of AI to accelerate various Web3 efforts, including education, gaming, fashion, sports, and digital identity.
Despite the challenges faced by the industry, Siu remains optimistic about Web3 and the open metaverse.
He says that even during the bear market of 2022, NFT sales generated more than $24 billion.
In the first quarter of 2023 alone, NFT sales reached nearly $5 billion. Siu believes that the open metaverse, where true digital ownership exists, is alive and well.
Animoca Brands is in a favorable position because of the regulatory frameworks of its major business locations, such as Hong Kong, Japan, and the European Union.
These territories have demonstrated a positive understanding of the relevance and importance of Web3 and are creating environments that are conducive to Web3 initiatives.
Conclusions
In conclusion, Animoca Brands has experienced exceptional deferred revenue growth, overcoming the challenges brought about by the Covid-19 pandemic.
With its investments in blockchain, digital assets, and AI, the company is well positioned to advance the Web3 industry. Regulatory support in its key operating regions further strengthens its leadership position.
The future of Web3 and the open metaverse looks promising, and Animoca Brands is at the forefront of this digital revolution.
Despite the challenges faced by the industry in recent times, Yat Siu remains decidedly optimistic about the future of Web3 and the open metaverse.
Siu emphasized the resilience of the NFT market, with more than $24 billion generated in NFT sales during the bear market of 2022. In the first quarter of 2023 alone, NFT sales nearly reached $5 billion.
These impressive figures attest to the continued demand and potential of the open metaverse, where true digital ownership thrives.
Animoca Brands is in an advantageous position because of the regulatory frameworks of its major operating territories, such as Hong Kong, Japan, and the European Union.
These regions have demonstrated a positive understanding of the relevance and importance of Web3 and are actively promoting environments where Web3 initiatives can thrive.
This regulatory support further strengthens Animoca Brands’ leadership and paves the way for future growth and innovation.
