Mohamed Ezeldin argued that most businesses don’t actually need tokens. | Source: Aniomca | Veronica Cestari
* Mohamed Ezeldin, Head of Tokenomics at Animoca Brands, spoke to CCN at ZebuLive in London.
* True mainstream growth of Web3 will come when users stop focusing on the label, he said.
* Ezeldin warned that many token economies failed due to short-term ROI chasing.
The next wave of Web3 growth may only come after another global shock, similar in scale to the COVID-19 pandemic, Mohamed Ezeldin, Head of Tokenomics at Animoca Brands, told CCN at Zebu Live.
The comments come as Web3 gaming continues to experience a downturn, with projects regularly failing to reach their promised potential.
Pandemic-Level Shock
The 2020-2021 boom in blockchain games and digital assets was fueled by lockdowns and financial hardship in developing nations.
“If we have another pandemic, I think we’re in a much better place from a technological standpoint,” Ezeldin said at the Zebu Live conference in London.
“There needs to be a stimulant, in the same way COVID gave rise to play-to-earn gaming,” he added.
During that period, games like Axie Infinity became alternative income sources for players who lost their jobs.
“Gaming solved a problem for these people during that period of time,” Ezeldin said.
However, as the hype cooled and user engagement declined, he said the Web3 industry must rethink its foundations.
“Gaming alone isn’t going to bring the next wave of adoption,” he said. “You need the whole stack, including infrastructure, wallets, interoperability.”
The Term Web3 Is Holding Gaming Back
Founded as a gaming company, Hong Kong-based Animoca Brands has evolved into what Ezeldin called an “ecosystem enabler” with investments in more than 600 companies.
The future growth of the space, as Ezeldin sees it, will come when “we stop calling it Web3 gaming, then we know we’re doing something right.”
“We don’t buy games because they’re built on Unreal or Unity, we buy them because we enjoy the gameplay and the community,” he said.
Ezeldin emphasized that it’s less about how to extract value and “more so how can we add value to the ecosystem,” describing the firm’s focus on digital property rights and true asset ownership.
“Back in 2021, you still had to interact on-chain. Today, that can all disappear in the backend,” he said.
Tokens Are “The Glue”
While many companies rushed to issue tokens during the 2021-2022 crypto boom, Ezeldin argued that most businesses don’t actually need them.
“Tokens are tools that transcend national boundaries,” he said. “They allow communities to build ownership through digital assets, whether fungible or non-fungible.”
He described fungible tokens as “the glue to the ecosystem,” a financial layer connecting stakeholders and granting governance rights, while NFTs serve as badges of identity and belonging.
“It might be a membership to showcase that I’m part of this ecosystem,” he said.
However, Ezeldin warned that many token economies failed because of short-term thinking.
“It’s always been about value extraction, always about ROI,” he said.
Adding: “That’s why a lot of tokens have failed the test of time — there hasn’t been consistent value creation.”
Looking to 2030
Asked what a breakout Web3 game might look like by 2030, Ezeldin offered an ambitious benchmark.
“If a game’s total value locked can rival that of an economy with a top-20 GDP, that’s the possibility we have with Web3 gaming,” he said.
He added that mass adoption may require another “stimulant” akin to the COVID-19 pandemic, whether economic disruption or advances in AI.
“People don’t like change, we’re being pushed into it rather than pulled,” he said.
Ezeldin highlighted upcoming initiatives within the Animoca ecosystem, including a joint venture with Standard Chartered to develop a Hong Kong stablecoin.
“We’re really looking at how we can improve the education system with the right partners,” he said.
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