Exploring the Vietnamese crypto market VC interest is growing, NFT community is rising

Growing VC interest and rising NFT community in Vietnamese crypto market

Original Author: TENG YAN Original Translation: Shenchao TechFlow

If I had to firmly believe in one thing, it would be that the center of influence is undeniably shifting towards the East in the world of cryptocurrencies and Web3. I believe that in the not-too-distant future, Asia will become a powerful force in the field of cryptocurrencies and Web3.

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

So, what’s going on?

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• 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 in Asia (excluding China) is more friendly towards cryptocurrencies.

• Asia has a high mobile penetration rate and digital literacy level, providing an ideal environment for the adoption of digital currencies. With smartphones becoming cheaper and internet access expanding, more and more Asians are connecting with the digital financial world.

• In many parts of Asia, a significant proportion of the population does not have bank accounts or access to adequate banking services. Cryptocurrencies provide an alternative way for these people to participate in the financial system through cheaper and faster cross-border remittances and peer-to-peer payments.

Vibrant Vietnam

Last week, I visited Vietnam, a country that is emerging in the field of cryptocurrencies. With a population of 98 million, Vietnam is touted as having nearly 50% of its population using cryptocurrencies, making it the country with the highest adoption rate of cryptocurrencies globally.

However, this “50%” statistic may be exaggerated when talking to locals.

• Multiple wallets used by airdrop hunters have contributed to this inflated growth in data.

• Most “ordinary people” still see cryptocurrencies as a scam or a get-rich-quick scheme.

Upon stepping foot in Vietnam, you immediately sense an indescribable vitality and active atmosphere. The population is young, energetic, and ready to strive. While language may pose a barrier, those who are fluent 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, such a configuration can sustain the company’s development for 18 years. In comparison, Singapore only has a paltry 3.4 years, and the United States only has 2.9 years.

Web3 products have been global from the beginning. This means that the geographical location of the team’s location becomes less important. We are still in the early stages of Web3 adoption and it is uncertain when the turning point will be reached. Therefore, being able to build and iterate over many years without constantly worrying about running out of funds is an important advantage.

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

Increasing interest in venture capital in Vietnam

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

I have encountered venture capitalists 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. Vietnam’s valuations are usually 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 important ecosystem builders:

• Kyros Ventures is a top local venture capital firm and ecosystem builder that you can contact if you want to enter the Vietnamese market.

• K 300 Ventures is another well-known venture capital firm in Vietnam that invests locally and in other regions.

• Coin 98 Wallet is often referred to as the “Binance” of Vietnam, with its own exchange, media, and venture capital department.

• Ancient 8 is the largest Web3 gaming guild in Vietnam and the infrastructure layer of GameFi.

The Rise of the NFT Community

The NFT community in Vietnam is also thriving. 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.

One highlight of my trip was the opportunity to meet friends on Twitter at a secondary event. The open bar of Avocado DAO was particularly memorable, where I met amazing people from around the world.

There are several other NFT-related projects 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 of NFT Group Discussions

During my time in Ho Chi Minh, I attended several NFT group discussions. While preparing to answer these interesting questions, I took some notes that I would like to share with everyone.

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

• Currently, there are two main groups in the NFT field: traders and builders.

• From the perspective of traders, NFTs are almost dead. When prices keep falling, there is no opportunity to make money, and traders will leave. But when prices start rising again, they will come back, I can assure you.

• From the perspective of builders: if you are immersed in this field, interacting with startups and founders every day, you can’t help but feel excited about the future of NFT as a technological tool. I consider myself part of this camp.

2. The initial concept of NFT was a great promising narrative that empowers the people, empowers creators, and provides unprecedented utility. Where are we now, and what are some specific examples of substantial progress you have seen in this field?

• I believe that almost everything will have an NFT form, at least everything that is digital. 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 substantial efforts in the NFT space. For example, Nike is using NFTs as a new tool to build their brand and engage with their digitally native young audience.

• Today, social media is already oversaturated. These brands are focusing on Web3 as an open opportunity to reach new digitally native audiences who will be a key market segment in the coming decades.

3. How do we achieve this goal?

The key to making progress is to attract more creators into this field and enable them to easily express their creativity using Web3 tools. This includes artists, entrepreneurs, musicians, influencers, and more.

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

4. What are the challenges and opportunities in creating decentralized intellectual property or brand presence?

• One belief I hold is that the next significant consumer IP company will be built on the infrastructure of Web3.

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

• This aligns with the dynamics of digital games: 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 it’s in movies, games, or anime.

• Through early communities, creators can quickly iterate on successful elements and set aside unsuccessful ones by gaining feedback more rapidly. The entire process becomes more streamlined and efficient.

• With ownership, your community is more motivated to participate and stay loyal.

• Of course, the biggest challenges are time (taking years) and making the right choices for brands.

Vietnam in the Early Stage of Web3

After attending the GM Vietnam conference and having many conversations, it is clear that Vietnam’s Web3 ecosystem is still in its early stages but definitely moving in the right direction.

It won’t take off immediately – I guess it might take until around 2026 to 2030. But I expect Vietnam to become an important player in the Web3 ecosystem in the next few years.

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