Original Title: 《Asia's Crypto Grand Rising》

Author: TENG YAN

Translation: Deep Tide TechFlow

If I had to hold on to one belief, it would be this: the center of influence in the world of cryptocurrency and Web3 is undeniably shifting eastward. I believe that in the near future, Asia will become a powerful force in the cryptocurrency and Web3 space.

From the bustling cryptocurrency trading hubs in South Korea and Japan to the emerging markets in Vietnam and the Philippines, Asia's influence in the cryptocurrency world is growing. Later this year, Hong Kong is expected to become a testing ground for China in the cryptocurrency sector, even though mainland China itself remains largely closed off.

What’s going on?

• Asia is a hotbed of technological innovation. Companies and developers in China, South Korea, and Singapore are often at the forefront of new tech trends.

• The regulatory environment for cryptocurrency in Asia (excluding China) is more friendly.

• Asia has a high mobile penetration rate and digital literacy, providing ideal soil for the adoption of digital currencies. As smartphones become cheaper and internet access expands, more and more Asians are connecting to the digital financial world.

• In many parts of Asia, a significant proportion of the population lacks bank accounts or has inadequate banking services. Cryptocurrency offers these individuals an alternative way to participate in the financial system, with cheaper and faster cross-border remittances and peer-to-peer payments.

The Vibrant Vietnam

Last week, I visited Vietnam, a country that is emerging in the cryptocurrency space. With a population of 98 million, it has been touted that nearly 50% of its people have used cryptocurrency, making it the country with the highest cryptocurrency adoption rate in the world.

In conversations with locals, this "50%" statistic may be exaggerated.

• Multiple wallets from airdrop hunters have driven this inflated data growth.

• Most "ordinary people" still view cryptocurrency as a scam or a get-rich-quick scheme.

Stepping into Vietnam, you immediately feel an indescribable vibrancy and active atmosphere. The population is young, energetic, and ready to strive. Although language may pose a barrier, those proficient in English have a significant advantage on the international stage.

Another striking statistic is that if a 10-person Web3 startup based in Vietnam has $5 million in funding, this configuration can sustain the company for 18 years. In contrast, Singapore has a meager 3.4 years, and the U.S. only 2.9 years.

Web3 products are inherently global from the start. This means that the geographical location of the team becomes less important. We are still in the early stages of Web3 adoption, and it is uncertain when we will reach a tipping point. Therefore, the ability to build and iterate over many years without constantly worrying about running out of funds is a significant advantage.

I firmly believe that more teams should consider outsourcing part of their operations. With the rise of tech talent in places like Vietnam, this is an opportunity that cannot be overlooked. Of course, this strategy depends on finding trustworthy local leaders or partners who can effectively manage these offshore operations.

Growing Interest in Vietnamese Venture Capital

One of the most obvious signs of Vietnam's potential is the interest from venture capitalists (VCs) from other countries.

I have met VCs from various countries who take the time to focus on the Vietnamese market, build local networks and resources, and look for the next big startup. Valuations in Vietnam are often more reasonable, making it an attractive market for investors.

The question on everyone's mind is: Who will be the next Sky Mavis/Axie Infinity? For anyone looking to get involved in the Vietnamese market, here are a few key ecosystem builders:

1. Kyros Ventures is a top local venture capital firm and ecosystem builder; you can reach out to them if you want to enter the Vietnamese market.

2. K300 Ventures is another well-known venture capital firm in Vietnam, investing in local and other regions.

3. Coin98 Wallet is often referred to as Vietnam's "Binance," with its own exchange, media, and venture capital division.

4. Ancient8 is the largest Web3 gaming guild in Vietnam and serves as the infrastructure layer for GameFi.

The Rise of the NFT Community

Vietnam's NFT community is also beginning to thrive. The Anti Anti NFTs Club (AANC) is the largest NFT community in Vietnam, led by co-founders Farrier Ng and Tin. I have personally met both of them and can attest that they are outstanding and passionate individuals. AANC is dedicated to education, research, and helping people find jobs in the NFT industry.

A highlight of my trip was the opportunity to meet friends from Twitter at an event. The open bar hosted by Avocado DAO was particularly memorable, where I encountered amazing people from around the world.

Several other NFT-related projects are also emerging in Vietnam, including:

• Aura Network, an NFT chain based on Cosmos;

• SeekHYPE, an NFT marketplace;

• Darenft, an NFT infrastructure protocol;

• Oxalus, a social commerce platform for NFTs.

Highlights from the NFT Panel Discussion

During my time in Ho Chi Minh City, I attended several NFT panel discussions. While preparing to answer these intriguing questions, I jotted down some notes to share with everyone.

1. The NFT space is currently in a genuine bear market. In terms of trading, liquidity in the NFT space has also significantly decreased. TLDR: Are we done for?

• There are currently two main groups in the NFT space: traders and builders.

• From a trader's perspective, NFTs are almost dead. When prices keep falling, there are no opportunities to make money, and traders will leave. But when prices start to rise again, they will come back, I can assure you.

• From a builder's perspective: If you are immersed in this field, interacting with startups and founders daily, you can't help but feel excited about the future of NFTs as a technological tool. I consider myself part of this camp.

2. The initial concept of NFTs is a huge promising narrative that empowers people, empowers creators, and provides unprecedented utility. Where do we stand now, and what are some concrete examples of substantial progress in this field?

• I believe that almost everything will have an NFT form, at least everything that is digitized. NFTs are essentially the property rights layer of the internet.

• Luxury brands like LV, as well as large consumer brands like Nike and Starbucks, have already made some substantial moves in the NFT space. For example, Nike is using NFTs as a new tool to build and engage with a digitally native young audience.

• Nowadays, social media is oversaturated. These brands are looking at Web3 because it is an open opportunity to reach new, digitally native audiences who will become a key market segment in the coming decades.

3. How do we achieve this?

The key to making progress is attracting more creators into this space and enabling them to leverage Web3 tools to express their creativity more easily. This includes artists, entrepreneurs, musicians, influencers, and more.

In my view, we need to attract the next million creators to bring the next billion users into Web3.

4. What challenges and opportunities exist in creating decentralized intellectual property or brands?

• One belief I hold is that the next important consumer intellectual property company will be built using Web3 infrastructure.

• You don't need tens of millions of dollars to create the next Pokémon or Disney. Anyone can launch (or with limited funds) and build an early community around their creative vision through NFTs (non-fungible tokens).

• This aligns with the laws of digital gaming: many will try and fail, but a few will succeed beyond our imagination.

• NFTs will become the foundational layer for new intellectual property creation: whether in film, games, or anime.

• Through early communities, creators can receive feedback more quickly, allowing them to iterate successful elements rapidly and set aside unsuccessful ones. The entire process becomes more streamlined and efficient.

• Because of ownership, your community is more motivated to engage and remain loyal.

• Of course, the biggest challenges are time (it takes years) and making the right choices for the brand.

Vietnam's Early Stage with Web3

After attending the GM Vietnam conference and engaging in numerous conversations, it is clear that Vietnam's Web3 ecosystem is still in its infancy but is definitely moving in the right direction.

It won't take off immediately—I suspect it may be around 2026 to 2030. But I expect that in the coming years, Vietnam will become an important player in the Web3 ecosystem.