TLDR

  • Yat Siu states the crypto sector placed excessive bets on political results, such as Trump’s tariffs, resulting in lackluster Bitcoin returns.
  • Animoca Brands intends to become a public company via a reverse merger, positioning itself as a proxy for altcoin investment.
  • Regulatory measures in the US, including the Clarity Act, are anticipated to drive corporate tokenization for regulatory security.
  • 2026 is projected to become the “year of the utility token,” where cryptocurrency offerings deliver practical value instead of mere speculation.

At the end of 2025, Yat Siu of Animoca Brands considers the cryptocurrency market’s excessive dependence on political developments, especially those involving former President Donald Trump. He cautions that this speculative period needs to conclude, with the sector transitioning to a more developed strategy. Siu predicts 2026 will herald the emergence of “utility tokens,” where crypto initiatives concentrate on practical applications and regulatory certainty, advancing past the hype-driven speculation.

The Trump Effect on Crypto in 2025

Throughout 2025, the cryptocurrency market struggled with political pressures, mainly from the US and former President Donald Trump. Yat Siu, co-founder of Animoca Brands, characterizes the year as the “Trump year,” not due to presidential support for crypto, but because the industry wagered too heavily on political results, from tariffs to potential rate reductions. This dependence on political events failed to meet expectations, causing poor performance for Bitcoin and the wider market.

Siu clarifies that numerous market participants viewed Trump as a pivotal catalyst for growth. Yet, Trump’s emphasis on trade conflicts and import taxes shifted focus away from the essential principles of cryptocurrency.

“If you’re starting a tariff war, you’re not thinking about what happens to Bitcoin,” Siu stated. His analysis implies that crypto’s speculative tendencies, fueled by politics, led to its weak showing in 2025, with Bitcoin ending the year weakly and recording its fourth yearly drop ever.

Animoca Brands’ Move Toward Tokenization and Utility

As the cryptocurrency market rebounds from recent speculative excess, Siu foresees a move toward genuine applications and tokenization in the near future. Animoca Brands, a prominent investor in Web3 and gaming, is aligning itself to benefit from this change. The firm is arranging a reverse merger with Currenc Group, a fintech company on Nasdaq, with the goal of listing publicly and acting as a liquid alternative to direct altcoin investment.

This merger will enable Animoca to give investors broad exposure to the crypto market, especially the extensive range of alternative coins. Siu points out that while Bitcoin and Ethereum are dominant, investors seeking diversification beyond them encounter difficulties. “There’s no vehicle for altcoins like MicroStrategy is for Bitcoin,” Siu said. By providing public market access to altcoins and Web3 ventures, Animoca aims to fill this void and supply a liquid, varied token portfolio for investors.

Regulatory Clarity and the Future of Tokenization

Regulation is a crucial element that will define crypto’s trajectory. Siu anticipates that forthcoming US laws, like the Clarity Act and the GENIUS Act, will offer essential legal definition for crypto initiatives and token creators. These rules are likely to simplify token creation, exchange, and oversight, encouraging larger corporations to participate in the crypto ecosystem.

After these regulatory structures are established, Siu foresees a surge of established firms embracing tokenization. He labels this transition as “Tokenize or die,” stressing that traditional businesses must adopt tokens to ensure legal protection and maintain competitiveness. This trend may trigger an increase in tokenizing physical assets, connecting conventional finance with blockchain technology.

The Year of the Utility Token in 2026

Looking forward to 2026, Siu expects the emphasis to move from speculative tokens to products with actual usefulness. This change follows the speculative fever around memecoins, which led to considerable losses for everyday investors. Siu observes that at the height of the memecoin trend, many tokens were introduced without definite purposes, depending only on stories and excitement.

As the crypto market evolves, the upcoming generation of projects will aim to address real user needs. Siu is confident that 2026 will be the “year of the utility token,” with new ventures dedicated to creating authentic value. This may involve tokens linked to gaming, digital property, and other functional uses that attract a wider audience beyond dedicated crypto supporters.