Exploring the Vietnam Cryptocurrency Market: Growing Interest in VC, Rise of NFT Community
Original Title: "Asia's Crypto Grand Rising"
Original Author: TENG YAN
Original Translation: Deep Tide TechFlow
If I had to firmly believe in one thing, it would be that the center of influence in the world of cryptocurrency and Web3 is undeniably shifting towards the East. I believe that in the near future, Asia will become a powerful force in the field of cryptocurrency and Web3.
From the bustling cryptocurrency trading centers of South Korea and Japan to the emerging markets of Vietnam and the Philippines, Asia's influence in the world of cryptocurrency is growing. Later this year, Hong Kong is expected to become a testing ground for China in the field of cryptocurrency, despite China itself being largely closed off.
What's going on here?
Asia is a hotbed of technological innovation. Companies and developers from China, South Korea, and Singapore are often at the forefront of new tech trends.
The regulatory environment in Asia (excluding China) is more crypto-friendly.
Asia has a higher mobile penetration rate and digital literacy level, providing an ideal soil for the adoption of digital currencies. As smartphones become cheaper and internet access expands, more and more Asians are connected to the world of digital finance.
In many regions of Asia, a considerable proportion of the population either doesn't have access to traditional banking or has limited access. 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 went to Vietnam, a country that is making its mark in the field of cryptocurrencies. With a population of 98 million, Vietnam is touted as having nearly 50% of its population having used cryptocurrency, making it the country with the highest cryptocurrency adoption rate globally.
However, during conversations with locals, this "50%" statistic may have been exaggerated.
The multiple wallets of the airdrop hunters have driven this exaggerated data growth.
Most "ordinary people" still regard cryptocurrency as a scam or a get-rich-quick scheme.
Stepping into Vietnam, you will immediately feel an indescribable vitality and lively atmosphere. The population is young, full of energy, and ready to strive. Although language may pose a barrier, those who are fluent in English have a significant advantage on the international stage.
Another remarkable statistical data is: Assuming a 10-person Web3 startup based in Vietnam with $5 million in funding, this allocation could sustain the company's operations and development for 18 years. In comparison, Singapore has a meager 3.4 years, and the United States has only 2.9 years.
Web3 products are global from the start. This means that the geographic location of the team's location becomes less important. We are still in the early stages of Web3 adoption, and it is uncertain when we will reach the inflection point. Therefore, being able to establish and iterate over several years without constantly worrying about funds running out is a significant advantage.
I firmly believe that more teams should consider outsourcing a part of their operations. With the rise of technical talents 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.
The growing interest in venture capital in Vietnam
A clear sign of Vietnam's potential is the interest of venture capitalists (VCs) from other countries.
I have met venture capitalists from various countries who take the time to focus on the Vietnamese market, build local connections and resources, and seek 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 become the next Sky Mavis/Axie Infinity? For anyone looking to participate 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 Vietnamese venture capital firm that invests locally and in other regions.
Coin 98 Wallet, often referred to as "Binance" of Vietnam, has exchanges, media, and venture capital departments.
Ancient 8 is the largest Web3 gaming guild in Vietnam and serves as the infrastructure layer for GameFi.
The Rise of the NFT Community
The NFT community in Vietnam is also flourishing. 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 to their outstanding and passionate personalities. 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 from Twitter at a secondary event. The open bar at Avocado DAO was particularly memorable, where I met incredible people from around the world.
There are several other NFT-related projects emerging in Vietnam, including:
Aura Network, a Cosmos-based NFT chain;
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 City, I attended several NFT group discussions. As I prepared to answer these intriguing questions, I took some notes that I'd like to share with everyone.
1. NFTs are currently in a real bear market; liquidity in the NFT space has also significantly decreased. TLDR: Are we doomed?
There are currently two main groups in the NFT space: traders and builders.
From a trader's perspective, NFTs are practically dead. Without opportunities for profit as prices continue to decline, traders will leave. But when prices start rising again, they will come back, I can assure you.
From the perspective of a builder: if you are immersed in this field, communicating with startups and founders every day, you can't help but feel excited about the future of NFT as a technological tool. I believe I belong to this camp.
2. The original concept of NFT was a grand and promising narrative that empowers people, empowers creators, and offers unprecedented utility. Where are we now, and what specific examples of substantial progress in this field have you seen?
I believe that almost everything will have an NFT form, at least everything digital. NFT is essentially the property rights layer of the Internet.
Luxury brands like LV, as well as major consumer brands like Nike and Starbucks, have already done substantial work in the NFT space. For example, Nike is using NFT as a new tool to build brand and engage with their digitally native young audience.
Today, social media is already oversaturated. These brands are focusing on Web3 because it is an open opportunity to reach new, digitally native audiences who will be a key market segment in the next few 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 utilize Web3 tools to express their creativity. This includes artists, entrepreneurs, musicians, influencers, and so on.
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 brands?
One viewpoint that I firmly believe in is that the next important consumer intellectual property companies 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 with limited funds) and build an early community around their creative vision using NFTs (non-fungible tokens).
This falls in line 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 animation.
Through early communities, creators can receive feedback more quickly, enabling rapid iteration of successful elements and shelving unsuccessful ones. The whole process becomes more streamlined and efficient.
With ownership, your community is more motivated to participate and stay loyal.
Of course, the biggest challenge is time (which takes several years) and making the right choices for the brand.
Vietnam and the early stages 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 it is definitely moving in the right direction.
It won't take off immediately—I speculate it may have to wait until around 2026 to 2030. But I expect Vietnam to become an important participant in the Web3 ecosystem in the next few years.
