Most of the financial and law firms in Hong Kong are reportedly choosing to downsize their offices because of the slow economy, but not Animoca Brands. Animoca – famous for its Web3 and digital culture endeavour – enlarged its office space to 28 thousand square meters, just slightly smaller than ten tennis courts. This growth seems to undercuts the downsizing trend prevalent in Hong Kong’s finance and professional services industries.
Animoca’s new office is situated in the technological area of Hong Kong Island, the southern part of which serves as the Company’s acknowledgement of the city’s role as an international technological centre. Animoca’s action demonstrates adaptation and confidence even in tough economic conditions, reflected widely around the globe.
Sluggish demand for offices in Hong Kong
When Hong Kong encountered slowing down economy from mainland China office space began to shrink. To meet these changes, financial institutions and professional services firms are cutting back on the amount of space they occupy. Office real estate has felt the severity of these changes most sharply, especially the offices of Traditional finance companies, also known as TradFi, which have been downsizing or rewiring their requirements for sprawling offices.
Animoca Brands, however, has gone a different way. It has grown from 7,500 square feet to 28,000 square feet, thanks to its status as a Web3-focused company under chairman Yat Siu. “It’s a renter’s market right now in Hong Kong,” said Animoca’s president, Evan Auyang, in a conversation with CoinDesk. “For this reason, we saw this as the perfect time to build this collaboration not just for us but for the other companies in our portfolio.” By taking this chance, Animoca shows positive attitude of the company to the aforementioned prospect of the city as the global headquarters of digital culture.
Animoca’s Resilience Amid Market Challenges
This expansion is especially significant given the recent fluctuations in the crypto market for the company known as Animoca. This company, which specializes in NFT and GameFi, experienced cyclical fluctuations in the past year as well. Animoca, in 2023, like other firms operating within the crypto industry, struggled with issues such as layoffs and a drastic cut in its metaverse fund from $2 billion to $800 million. However, it did not let these challenges dampen its spirit; instead, the company aimed at growth and used tough times as an opportunity for experimenting.
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Auyang added that from its prior experience, Animoca knows that change is always possible where necessary. ‘We need to adapt this strategy because, as a company, we have to experiment,’ he added. You just have to take those with the territory, he said. He said this flexibility has been occasioned by an experienced workforce, noting that most executives are in their middle age, 40s and 50s. “I believe that our executive team is relatively experienced. We’re not kids in our 20s. As he put it, most of us are in our 40s and 50s.” This maturity has been one of the main reasons why Animoca has been in a position to overcome an unpredictable market.
Government Support Reinforces Hong Kong as Web3 Hub
Another advantage that makes Animoca reaffirm its presence in Hong Kong is the support from the government of the city. In recent months, Hong Kong’s administration has been supporting web3 Hub development and, thus, digital innovation. Auyang emphasized the government’s action by saying, “When the Financial Services and Treasury Bureau declared Hong Kong’s vision for Web3, they did it alongside Yat Siu. The kind of relationships that are expressed at one level is different.”
However, this government alignment is essential for Animoca among investors. The company realizes that the blend of creativity and culture associated with Hong Kong’s past in film, music and art is hard to reproduce. The company even contemplated moving out during the COVID-19 outbreak, but it decided to remain here. “During COVID, we contemplated moving,” Auyang agreed. But, at long last, we are children of this country, this continent.” Hong Kong remains part of what we are.”
Conclusion: A Breathtaking Gamble on Hong Kong’s Future
While many Hong Kong firms are cutting their office footprint, Animoca Brands is going in the opposite direction. The expansion of Maxeler’s presence in Hong Kong, along with government support and an experienced executive team, shows its confidence in Hong Kong as a Digital/WEB3.0 city. However, Animoca’s decision to stay put and double down on expansion shows it believes the city has a place in the digital economy regardless of the state of other industries.
By focusing on innovation and embodying a significant link with Hong Kong, Animoca provides other tech firms with a recipe for considering the city for Web3 development. Keep following TheBITJournal and keep an eye on the latest crypto trends and developments.
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