That’s $500 million in NFT sales per month…seriously? Is this the Web3 revolution we’ve all been waiting for, or hi-tech digital hocus pocus? Before we start popping champagne corks, it’s time to inject a little sobriety into this otherwise happy tale. Somewhat ironically, what looked like a test of sincere adoption may have been an elaborate ruse driven by hype and unreproducible economics.

Genuine Adoption or a Mirage?

There’s no doubt Animoca Brands has created a Web3 empire. Beyond that, their strategic investments in the blockchain infrastructure landscape speak for themselves. That audited FY2021 report was not released until June of 2025. Included are continuing positive revenue growth, moving from a net asset deficit to a net asset surplus, and transition to enhanced financial management practices. This is commendable. We should not be deceived by the digits.

What exactly are people buying? Are these NFTs actually for truly helpful digital items, or are they speculative automobiles capitalizing on the tsunami of chips trends? How much of this $500 million can actually be counted as gaming NFTs and not metaverse land grabs? Even more het up than that, how many actual unique buyers is it taking to do that?

If these sales are largely restricted to a small number of wealthy individuals or institutional investors, that indicates a troubling trend. It absolutely does NOT reflect widespread adoption in any way. It's more akin to a digital asset aristocracy, which is the antithesis of what Web3 was supposed to be: a revolution for the people.

Beyond the Hype, What's the Utility?

Animoca’s reach beyond video gaming is indeed strategic. Recent partnerships with blockchain technology behemoths such as Sony (Soneium blockchain network) suggest that there’s an institutional interest brewing. Moca Network has built-in decentralized identifiers and decentralized reputation systems. This exciting action brings us one step closer to addressing a number of key challenges related to digital identity and property rights.

Here's the uncomfortable truth: most NFTs still lack tangible utility. Or in other words, they’re just cool JPEGs with a big price tag attached. Even as leading technological developments have created energy-efficient blockchains, with reduced environmental impact for NFTs, the environmental impact of minting and trading these NFTs remains a core concern. The regulatory landscape is still very unclear, adding confusion for creators and consumers alike.

The proverbial elephant in the room here is the risk for scams and frauds. While blockchain technology provides individuals with anonymity, this anonymity can present a counterparty risk. This makes it all too easy for bad actors to take advantage of unsuspecting investors. As we’ve experienced with ICOs in the past, are NFTs merely another form of the same playbook?

Consider the parallels with the dot-com boom. Flimsy business models received tons of investment, only to go bankrupt when the bubble burst. Are we in the NFT world headed for the same kind of reckoning? It's a possibility we need to consider.

Centralization vs. Decentralization Paradox

Animoca's success, while impressive, presents a paradox. They are, for all intents and purposes, becoming a centralized actor in the very decentralized Web3 ecosystem that they promote so heavily. Their enormous portfolio of investments provides them with unprecedented leverage to direct the future course of the industry. This is not a good or bad thing in and of itself, but it does point to deeper questions around power dynamics and what decentralization really means.

Libertarians would see the true Web3 as an environment that puts individuals in control of their data and assets. It simply persists outside of any one central authority’s control. Are we really headed in that direction, or are we just swapping out old gatekeepers for new ones built on the blockchain?

To be sure, the burgeoning institutional interest in blockchain and digital property rights is a double-edged sword. On the positive side, it might introduce some legitimacy and stability into the chaotic space. On one hand, it might increase the potential for regulation and control, thus putting innovation in a box and further diminishing individual freedom.

Animoca’s $500M in monthly NFT sales would be that tipping point, not in the way you might imagine. It's a tipping point that forces us to confront the fundamental questions about Web3:

  • Is it truly empowering individuals, or just enriching a select few?
  • Is it fostering genuine innovation, or just creating new forms of digital speculation?
  • Is it building a more decentralized future, or simply shifting power from one set of institutions to another?

The answer, as I’m coming to believe, is multi-faceted and subtle. One thing is clear: we need to approach the future of NFTs and Web3 with a healthy dose of skepticism and a relentless focus on real utility. Only then can we make certain that this revolution fulfills its promise.