As traditional finance (TradFi) institutions in Hong Kong retrench in the face of a decelerating mainland Chinese economy, Web3 company Animoca Brands is bucking the trend by expanding its footprint in the city. Known for its focus on NFTs and GameFi verticals, Animoca recently inaugurated a new 28,000 square-foot workspace, a tenfold increase from its previous office space, and a testament to the company’s commitment to Hong Kong amidst the challenges of the COVID-19 pandemic.
“Hong Kong is part of our DNA,” said Evan Auyang, President of Animoca Brands, in an interview with CoinDesk. While the company considered relocating during the height of the pandemic, Animoca has ultimately decided to stay put, demonstrating its resilience and adaptability amidst an unprecedented global crisis.
The city’s financial sector and professional services firms have been downsizing their real estate presence due to slowing demand. However, Animoca saw the current market conditions as an opportunity to create a collaborative space not just for its own employees, but for other companies in its portfolio. Auyang elaborated, “We went from 7,500 square feet to 28,000 square feet. It’s a renter’s market right now in Hong Kong, and we saw this as the perfect time to expand.”
Animoca, like many in the crypto sector, had a tumultuous 2023, facing layoffs and reducing the target size of its metaverse fund from $2 billion to $800 million. Despite these challenges, the company has continued to adapt and evolve, driven by a culture of experimentation and the infusion of diverse talents. “As a company, we have to experiment. We have to accept failure as part of it,” Auyang said.
One distinguishing feature of Animoca is the seasoned experience of its team. “Our executive team is fairly experienced. We’re not kids in our 20s. Most of us are in our 40s and 50s,” Auyang noted. This wealth of experience has undoubtedly guided the company through its various transitions and challenges.
Government support has also been instrumental in Animoca’s decision to stay rooted in Hong Kong, with Auyang describing the partnership as “invaluable”. This was evidenced when the Financial Services and Treasury Bureau (FSTB) announced its support for Web3 alongside Animoca’s CEO, Yat Siu.
In conclusion, Animoca’s decision to stay in Hong Kong was influenced by a multitude of factors – from the city’s unique creative energy to invaluable government support, and the resilience of the company itself. While the future is never certain, Animoca Brands continues to forge ahead, embodying the spirit of experimentation and innovation that is characteristic of the Web3 sector.
