Introduction
As the global crypto industry navigates a post-regulatory maturation phase, Robby Yung—CEO of Animoca Brands—has emerged as one of the most vocal advocates for integrating artificial intelligence into blockchain-based investment strategies. In a recent interview with BeInCrypto, Yung shared his views on how AI and Web3 are evolving in parallel and how these innovations are reshaping capital allocation, risk assessment, and retail investor engagement across the digital asset space. His insights arrive at a time when the U.S. crypto market is simultaneously experiencing macroeconomic headwinds, evolving regulatory frameworks, and renewed institutional interest. Together, these forces are forging the next phase of global digital finance.
The Convergence Of Artificial Intelligence And Blockchain
Yung begins by highlighting the convergence of AI and blockchain as more than a technological overlap—it is, in his view, the next major leap in capital efficiency. AI, he argues, offers far more than predictive analytics or algorithmic trading. In blockchain environments, where data is often transparent but overwhelming, AI provides the tools to synthesize, interpret, and act upon massive streams of decentralized financial (DeFi) information. This creates a feedback loop where data-rich blockchain systems feed intelligent decision-making frameworks powered by machine learning, which in turn optimize token economies, smart contract deployments, and even governance processes.
Within Animoca Brands’ portfolio, AI is increasingly being deployed to assess investment opportunities not just in traditional layer-1 chains but in emerging Web3 applications. These range from GameFi and metaverse platforms to decentralized identity solutions and infrastructure protocols. Yung notes that AI helps identify hidden alpha across these sectors by evaluating social sentiment, developer activity, transactional flows, and user retention metrics—factors that often escape conventional venture capital lenses.
Institutional Involvement In A Reshaped U.S. Market
When asked about the current status of the U.S. crypto market, Yung was frank in acknowledging the challenges posed by regulatory uncertainty, particularly surrounding the classification of tokens, stablecoin issuance, and centralized exchange oversight. However, he remains optimistic. His view is that these obstacles are transitional. As policymakers and courts move closer to clarity, institutional players—hedge funds, asset managers, and family offices—are already quietly re-entering the space through qualified custodians and registered security frameworks.
AI, again, plays a crucial role here. Institutional risk modeling, Yung explains, traditionally relies on predictable inputs. However, the crypto market is known for volatility and narrative-driven behavior. AI, when trained properly, can incorporate on-chain data, real-time market sentiment, and macroeconomic signals to generate dynamic portfolio strategies. Animoca has invested in several firms that provide this infrastructure to funds and compliance departments, facilitating safer and more informed institutional adoption.
Web3 Investment Strategies And AI-Powered Due Diligence
Beyond trading and market entry, AI is revolutionizing due diligence in Web3 startups. In the traditional VC world, diligence is often manual and time-consuming. In contrast, AI-powered engines now scrape GitHub repositories, monitor smart contract interactions, and track token distribution to assess the health and legitimacy of new crypto ventures. Animoca Brands has internalized much of this process, Yung notes, allowing it to evaluate hundreds of potential investment opportunities per quarter with far greater speed and accuracy.
One of the more compelling use cases for AI in Web3 investment is in behavior prediction. By analyzing wallet activity across decentralized apps (dApps), AI can model user behavior over time—such as frequency of interaction, token staking preferences, and yield farming patterns. This not only helps assess a project’s traction but also informs go-to-market strategies and tokenomics. Yung sees this as essential in a competitive environment where user loyalty is transient and attention spans are short.
AI And The Metaverse: Beyond Gaming
Animoca Brands is perhaps best known for its involvement in metaverse projects like The Sandbox. But Yung stresses that the metaverse, as they envision it, is much broader than a gamified 3D environment. It includes digital identity, ownership, and interoperable value exchange. AI is key to bringing this vision to life. For instance, intelligent NPCs (non-player characters) that learn and evolve, AI-curated environments that personalize user experiences, and predictive models that guide developers on content creation trends are all currently being tested within Animoca’s ecosystem.
He also points out the importance of AI in content moderation, particularly in decentralized metaverse spaces. Unlike traditional platforms with centralized moderation, Web3 environments pose unique challenges in managing harmful content or financial scams. AI models trained specifically on blockchain behavior can help detect bad actors, fraudulent transactions, and coordinated manipulation efforts, preserving the integrity of open digital spaces.
Geopolitical Positioning: The U.S. Versus Asia And Europe
Yung’s global experience offers him a unique vantage point on how the U.S. compares with other regions in Web3 development. While the U.S. has historically led in venture capital and innovation, regulatory inertia has shifted momentum toward jurisdictions like the UAE, Singapore, and increasingly the UK. Yet, he insists that the U.S. remains a crucial market. The level of intellectual capital, technical talent, and institutional infrastructure is unmatched, he claims, even if regulatory ambiguity has temporarily slowed progress.
He notes that Asia has taken a leadership role in consumer crypto adoption and mobile-first applications, while Europe has prioritized data privacy and interoperability. In this landscape, Animoca Brands positions itself as a bridge, investing in culturally and structurally diverse markets with tailored AI and Web3 solutions. Yung emphasizes that adaptability—both technological and regulatory—is essential for long-term growth.
The Future Of Tokenization And Real-World Assets
Looking ahead, Yung sees the next major frontier as the tokenization of real-world assets (RWAs), including real estate, equities, and intellectual property. AI will be instrumental in valuing, fractionalizing, and trading these assets on decentralized platforms. For example, machine learning models can assess the value of a building or patent portfolio in real time using data from IoT sensors, legal databases, and market trends. These insights can then be baked into token smart contracts, creating dynamic, responsive asset-backed tokens.
Yung believes that as blockchain infrastructure becomes more interoperable and AI more contextual, users will experience a seamless interface between physical and digital assets. Imagine a future where buying a fraction of a Manhattan apartment is as easy as swapping ETH for a governance token, and AI alerts you in real time to price movements based on local events, regulatory shifts, or economic indicators. This, he argues, is not speculative fiction—it is on the roadmap.
Educating The Next Generation Of Web3 Investors
One of the most important long-term goals for Yung is ensuring that the next generation of crypto participants—retail investors, developers, and creators—understand both the potential and risks of these technologies. To this end, Animoca has begun investing in educational initiatives that combine AI-driven personalization with Web3 engagement mechanics. Think gamified learning environments that adapt to a user’s pace and reward mastery with tokens or NFTs. Yung sees this as both a moral obligation and a business imperative. The more informed the user base, the healthier the ecosystem.
Final Thoughts
Robby Yung’s views represent more than an investment thesis—they reflect a vision of responsible innovation, one that merges artificial intelligence with decentralized technology to create more inclusive, intelligent, and resilient financial systems. He cautions that the hype cycles of the past must give way to thoughtful execution. The tools are now in place: AI engines capable of processing decentralized data, interoperable blockchain layers, increasingly engaged regulators, and a global audience ready to engage with Web3 not just as users but as stakeholders.
As the lines between finance, identity, and technology blur, Yung calls for builders and investors to embrace complexity—not simplify it. Success, in his eyes, will belong to those who can combine transparency with sophistication, openness with security, and scalability with personalization. And at the center of it all, AI will not just be an assistant to crypto—it will be its compass.
