As Web3 continues to evolve, it’s becoming clearer that trust will determine who wins and who falls behind. In an interview with Cryptopolitan, Animoca Brands’ cofounder, Yat Siu, shared that trust is becoming the key to success for decentralized projects. He emphasized that those who prioritize trust will emerge as industry leaders. As blockchain technology’s popularity continues to grow and decentralized applications (DApps) build trust, it is no longer just an advantage — it’s a necessity.
So, how does trust shape winners and losers? The Hong-Kong-based entrepreneur shared that Web3 enthusiasts must embrace trust-building efforts such as offering transparency, open-source code and user-first governance models, which will ensure longevity and success in the industry. His company has embraced trust as an essential element in campaigning for its projects focusing on user empowerment and security. Siu says, “If users lack trust in you, they won’t interact with your platform.”
Siu, whose company has more than 540 investments in Web3 projects such as Axie Infinity, OpenSea and Dapper Labs, has vocalized the power of user-generated content (UGC) in the Web3 space. He shared that UGC is the backbone of the internet’s growth, emphasizing that platforms such as TikTok and YouTube are successful because they have embraced users’ creative freedom, which is critical for the future of Web3.
According to Siu, big brands can enhance their content production process, but they can’t reproduce UGC’s authentic, viral impact. He believes that corporate-controlled environments must partner up with UGC because it is the main driver of innovation.
There are already other Web3 projects, such as Ethereum and Polygon that have successfully built trust within their communities. These projects are transparent and prioritize safety, earning the confidence and trust of their users. They do so by providing updates, audits, and a focus on decentralization. According to Siu, these platforms are shaping the future of Web3 by making trust their number one priority. Siu’s Animoca Brands has become a major player by prioritizing security and transparency, ensuring users know they’re in safe hands.
Furthermore, Siu is of the opinion that having institutional support is important for the success of cryptocurrencies. He identified the rise of Bitcoin ETFs as a measure of institutional trust. “People trust projects that are backed by institutions,” he said, comparing the situation to the traditional equity markets where institutional investors control more than 80% of assets.
Animoca Brands, which is backed by institutional support, has succeeded because of this. Even during market volatility, the company has stood strong because of the support from institutions. For example, its MOCA token performed well because of its strong foundation and institutional support.
Looking forward, Siu believes that digital identity is the pillar of fostering trust in Web3 technology. He foresees a future where digital property rights and decentralized governance through decentralized autonomous organizations (DAOs) will ensure Web3 systems are succeeding.
Siu’s sentiments ring true because any innovators in the Web3 space who are looking to catch the attention of potential corporate clients such as NextPlat Corp. (NASDAQ: NXPL) (NASDAQ: NXPLW) have to create solutions that earn the trust of users and eventually become integrated into the systems of companies that can rely on them to serve the purpose for which they were acquired without falling victim to avoidable security or performance issues.
NOTE TO INVESTORS: The latest news and updates relating to NextPlat Corp. (NASDAQ: NXPL, NXPLW) are available in the company’s newsroom at https://ibn.fm/NXPL
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