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Animoca is bucking the trend of Hong Kong's TradFi sector, expanding as banks contract.
Hong Kong is part of Animoca's DNA, and while the firm was once tempted to leave the city during COVID, it's staying put.
Hong Kong is feeling the ripple effects of a slow mainland Chinese economy, and its financial sector as well as professional services firms are slimming down their real estate footprint to cope with slowing demand.
Then there's Animoca Brands, a Web3 company known for its NFTs and GameFi verticals. It recently opened a new 28,000 square-foot (2,601-meter) office spread across two floors in an up-and-coming tech district on the south side of Hong Kong island. That's about 10 times the size of a tennis court.
“We went from 7,500 square feet to 28,000 square feet,” said Evan Auyang, president of Animoca Brands, during an interview with CoinDesk. “It’s a renter’s market right now in Hong Kong, and we saw this as the perfect time to create a collaborative space not just for us but for other companies in our portfolio.”
While crypto is having something of a bull market, Animoca had a rocky 2023 – like the rest of the crypto sector – battling layoffs and cutting the target size of its metaverse fund from $2 billion to $800 million.
"As a company, we have to experiment. We have to accept failure as part of it,” he said, adding that Animoca, today, has pivoted a few times over the course of its short history.
The company's evolution is driven by a culture of experimentation and by bringing on talent that naturally pushes the company in new directions.
One thing that's new to Animoca, and different from other Web3 companies, is the amount of gray hair in the building.
“Our executive team is fairly experienced. We’re not kids in our 20s. Most of us are in our 40s and 50s,” Auyang said. “We’ve been through a lot."
Auyang highlights the importance of government backing in Animoca's decision to stay in Hong Kong, describing it as "invaluable" pointing to a pivotal moment when the Financial Services and Treasury Bureau announced its support for Web3 alongside Animoca’s CEO, Yat Siu.
“When the [FSTB] announced Hong Kong’s ambitions for Web3, they did it on stage with our CEO, Yat Siu. That level of partnership is unique,” he said.
Hong Kong’s unique creative energy, fueled by its rich heritage in film, music, and art, is something Animoca believes can’t be replicated elsewhere.
While the company could theoretically operate from anywhere – and Auyang said that Hong Kong's prolonged Covid-19 lockdowns had Animoca on the brink of some tough decisions – it ultimately just couldn't leave the city.
“During COVID, we thought about relocating. We could be anywhere.” Auyang said. “But ultimately, we were born here. Hong Kong is part of our DNA.”
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