Digital trend is here to stay
Hong Kong businesses are transforming the way they operate by embracing digitalization. But industry experts say the city still has much more to do for deeper integration into the Greater Bay Area. Zeng Xinlan reports from Hong Kong.
Seizing opportunities
"The popularity of cryptocurrencies has fuelled people's interest in investing in NFTs," says Evan Auyang, group president of Animoca Brands - a Hong Kong-based multinational blockchain technology and investment company. "People are jumping on the NFT bandwagon because ignoring it may mean missing out on opportunities."
Hong Kong companies, being agile and adaptive, have joined the bandwagon. The city's soccer club, Resources Capital Football Club, became the first Asian soccer team to launch NFTs after striking a deal in July last year. Other companies joined The Sandbox - a blockchain gaming platform which offers virtual real estate, called Land NFTs - to build virtual experiences in the metaverse.
"Metaverse", comprising the prefix "meta" - a Greek word meaning "beyond" - and "universe" has become a buzzword. Moves into the "mirrored reality" by tech giants, such as Facebook (now known as Meta) and Microsoft, have ignited the space. They prodded Hong Kong companies, including startups and traditional enterprises, to join in, putting the digital land concept under the spotlight.
New entrants to the space include Hong Kong tycoon and CEO of New World Development Adrian Cheng Chi-kong, alternative investing company Sun Hung Kai & Co, professional services firm PwC Hong Kong, as well as celebrities like actor and film director Stephen Fung Tak-lun and actress Shu Qi. They have bought Land NFTs in the Sandbox's virtual real-estate metaverse in building the "Mega City".
"Mega City" will feature Hong Kong's real estate, art and entertainment, as well as professional services, according to Harvey Tsoi, managing director of Greater China at The Sandbox. The merits of virtual land include its exclusive ownership and the possibilities it offers to its owners as there's no limitation of gravity, so landowners can build their space at will, he says.
Investors' growing interest in digital land is intertwined with a better understanding of the metaverse and its real-life connection, says Tsoi, adding that virtual space owners can benefit from fashion exhibitions on their lands, digital assets trading and real-estate rental. "IP ('internet protocol') and brands' presence can add value to the lands around them as they may expand their territory."
For this year, an insider expects to see a healthier and quality-focused crypto space. "We invest in companies as well. We will look at whether they have the patience," says Auyang. "Web 3.0 is a philosophical, purpose-driven economy. People may want to make a quick buck from it. They are not builders," he says, comparing Web 3.0 to the open metaverse.
