ARC’s Elroy Cheo on How Asia Is Doing Web3 Differently

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Elroy Cheo, a key figure and designer behind ARC, a notable group shaping the future of Web3, is dedicated to reshaping the interactions within digital communities.

Cheo and fellow entrepreneur Kiat Lim, who’s the son of tycoon Peter Lim, have transformed ARC into a collaborative center for Asians worldwide, offering members the opportunity to utilize a Stellar Non-Fungible Token (NFT) and a Soulbound Token named Fyrian. This duo provides entry to the ARC app, along with exclusive events and merchandise. Cheo aims to establish a network based on meritocracy, uniting members under common objectives and collective efforts.

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At this location, Cheo shares his perspective on ARC, detailing how his experiences in real estate development and music have shaped his strategies, as well as explaining why Asia is poised to spearhead the upcoming wave of advancements in NFT technology. In February, Cheo will be a featured speaker at Consensus Hong Kong.

The following interview has been edited for clarity and brevity.

How have your personal experiences shaped your approach to creating and building ARC?

My path has taken an unusual route – initially delving into commodities and property development. Prior to my foray into cryptocurrency, my most significant venture was managing the development of a massive urban center in China. Upon my arrival, it was merely open farmland; now, it’s a thriving city boasting a substantial GDP. This experience left an indelible mark on me – witnessing how collaboration can transform seemingly empty spaces into meaningful creations.

Back in 2016, my tech-savvy uncle, who happens to be 73, introduced me to the world of cryptocurrencies. Together, we embarked on an exciting journey, focusing on a blockchain-driven music copyright project. The goal was to address the issue of siloed databases prevalent in the music industry, where ownership disputes are quite common. It seemed that blockchain technology could serve as the ideal tool for consolidating ownership records. Remarkably, this project continues to thrive today, and I take immense pride in its resilience, as it never required a token to sustain itself.

The experiences I’ve gained as a builder have significantly influenced my perspective on cryptocurrency. To me, it’s not merely an arena for investment or speculation; rather, it’s a platform for generating value. This realization gave birth to ARC, a Web3 community, modeled after Balaji Srinivasan’s network state theory. Unlike Srinivasan who envisions these communities evolving into nation-states, our primary goal is to establish a digital-centric institution that thrives on shared goals and collective action.

In the context of Web3, the term “community” is frequently used but can sometimes become vague. How does ARC foster authentic relationships and remain rooted in its principles?

Community isn’t merely about quantity or market value; it’s all about fostering connections. If there are no ties among its members, what you have is an audience, not a community. We discovered that members appreciate four key aspects. Firstly, they desire entry to professional networks, which translates to carefully selected interactions with creators and investors. Secondly, they seek financial opportunities, like allocations for investment tokens. Thirdly, they look forward to unique lifestyle experiences, such as meeting celebrities like Cristiano Ronaldo or participating in exclusive brand collaborations. Lastly, they crave growth, whether it’s career advancement or personal guidance.

Here, we uphold the principle of “contribute to get contributed to.” This notion is inspired by the Chinese cultural concept of guanxi, which highlights reciprocity. Our members don’t merely seek advice; they help and support each other.

What sets Asian Web3 communities apart from their Western counterparts?

A notable contrast lies in the level of vocal participation within Western communities versus their Asian counterparts. Western communities appear more outspoken and influential on crypto-related Twitter discussions, while Asian communities generally prefer a quieter approach. This cultural difference is partly due to platforms like Twitter not being as popular here; instead, Chinese users are more active in private chat groups such as WeChat or Telegram.

Although it may seem surprising, Asian liquidity is immense. A relatively small Chinese community can generate over $1 billion in value for DeFi protocol Total Value Locked (TVL) in a single day, which is unusual in the Western world. At ARC, we acknowledge this significant power but also encourage our members to be more active in public engagement. Asia is rapidly emerging as a leading force in Web3, and it’s essential that we not only tap into its liquidity but also its collective consciousness.

How do NFTs evolve, especially with respect to digital identity and utility?

As a crypto enthusiast, the transition towards anonymity stirs my excitement. Instead of polished personas on platforms like Facebook and LinkedIn, individuals are opting for avatars – a shift that feels empowering. For instance, youngsters can conceal their identities behind Profile Pictures (PFPs), yet their abilities and knowledge remain undimmed.

At ARC, we’re delving into Non-Fungible Tokens (NFTs) as symbols of status. Imagine strolling into a hotel or event and having your NFT instantly validate your presence. Beyond being collectibles, NFTs could symbolize expertise or accomplishments – similar to badges on Stack Overflow. It’s all about crafting digital identities that resonate in the real world.

Given that ARC only allows 888 members, how might they sustain their elite image and growth-oriented structure in the future?

Limiting access can be effective when linked to a brand’s worth and careful administration of a community. We’ve intentionally kept ARC exclusive, accommodating only 888 members, which enables us to emphasize quality over numbers. However, expansion is feasible with the right structures in place. For instance, Reddit demonstrates this through one community manager efficiently handling millions of users by using guidelines and moderation tools.

The essence lies in preserving a brand’s esteemed image. To illustrate, we collaborated with Edition Hotel, a luxury boutique chain, prior to their Singapore debut. When I questioned their director regarding our privileged treatment such as exclusive member-only hospitality discounts, he simply replied, “You are ARC.” That’s the force behind brand value. It’s all about exclusivity, prestige, and providing unwavering quality. Moreover, ARC employs contributor systems to encourage active engagement. For instance, prominent contributors gain access to special offers, events, and exclusive experiences, ensuring that rewards are bestowed upon those who enrich the community.

What misconceptions do you see about NFTs, particularly in Asia?

A frequent error is thinking of NFTs solely as income sources. Many Asian intellectual properties and brands tend to treat NFTs as transactions instead of tools for fostering communities. I propose that NFTs can evolve beyond mere speculation and encourage community-based development. For instance, consider a boba shop leveraging NFTs to transform customers into members. Instead of the conventional sales funnel, the NFT offers an unconventional, non-linear experience where members stay connected and naturally promote the brand. It’s all about cultivating advocates, not just clients.

What excites you about Web3 innovation in Asia right now?

There’s an abundance of exceptional programmers across Asia, from Vietnam, China, and Singapore. However, one issue arises when globalizing their projects due to language barriers. As infrastructure advances, I am confident that Asia will solidify its position as a dominant force in this field. Artificial Intelligence is another intriguing area to explore. All in all, it’s exhilarating to witness Southeast Asia spearheading innovation in DeFi and NFTs.

Given that you initiated your projects in a bear market (January 2022) within the Web3 sphere, could you share some insights or guidance for fellow developers working in this domain?

Cultivate your work with fervor. The crypto world’s narratives shift swiftly, and without a burning passion, it can be simple to become disheartened. Many founders exhaust themselves because they lose focus on their mission. My suggestion: remain eager, stay inquisitive, and view your projects as ongoing experiments. Swift action with defined objectives is crucial.

Lastly, what are you most excited to share on-stage in HK?

I’m really excited to discuss something I’m passionate about – using NFTs to foster strong communities! In my opinion, NFTs are an excellent tool for establishing a unique brand and culture, as well as attracting like-minded individuals. Over time, a coordination token could help bring these people together towards a common objective. This approach emphasizes community first, which I refer to as a ‘Web3 social product’.

At ARC, our aim is to construct a digitally centered institution, fostering a tightly knit community. The idea of digital communities has significantly thrived following the COVID-19 pandemic, largely due to platforms such as Zoom and Google Meet enabling virtual gatherings among individuals.

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2025-01-15 17:47