On July 11, Animoca Brands introduced its own token, MOCA Coin. The launch is noteworthy given the rarity of public companies in the crypto realm making such moves. The GameFi and metaverse giant is planning an initial public offering (IPO) in early 2025, targeting either Hong Kong or the Middle East, both known for their favorable stances on cryptocurrencies.
Why Did MOCA Coin Surge?
Following its release, MOCA Coin saw a remarkable surge of over 90%, with CoinGecko data showing its market value exceeding $141 million. The token aims to serve as a utility token within Animoca’s ecosystem of Web3 games and applications, aiding the expansion and growth of the company. Yat Siu, co-founder and chairman of Animoca Brands, mentioned in a Medium post that the goal is to enhance Mocaverse’s reputation layer and encourage the creation of cultural capital.
What Led to Controversy?
Animoca Brands’ prominence in the cryptocurrency gaming and metaverse sectors makes the increase in market value unsurprising. However, the upcoming IPO plans early next year have sparked discussions. In 2020, the Australian Securities Exchange (ASX) delisted Animoca Brands for issuing tokens like The Sandbox (SAND), citing concerns over governance and the use of simple agreements for future equity (SAFEs). Despite submitting a 39-page report addressing these issues, ASX proceeded with the delisting.
Insights for Investors
- MOCA Coin is a utility token aimed at expanding Animoca Brands’ ecosystem.
- The token saw a surge of over 90% post-launch, reflecting strong market interest.
- Animoca Brands plans an IPO in early 2025, targeting Hong Kong or the Middle East.
- Past regulatory issues led to its delisting from the Australian Securities Exchange in 2020.
Details about the Process
According to Yat Siu, the token launch does not compromise the upcoming IPO, emphasizing that MOCA Coin is not an equity asset. It does not offer profit-sharing or earnings claims, meaning holders will not receive per-share earnings. Notably, Animoca Brands does not operate in the U.S., keeping it outside the jurisdiction of the U.S. Securities and Exchange Commission (SEC) led by Chairman Gary Gensler. In late June, Gensler pointed out compliance issues within the crypto industry, stressing the importance of securities laws in protecting investors and maintaining fair, orderly, and efficient markets.
As a result, this move by Animoca Brands sets a significant precedent in the evolving crypto landscape, highlighting both opportunities and regulatory challenges.
