EOS is Eyeing the East – And They’re Not Alone
Last August, high-performance blockchain EOS gained regulatory approval to trade its eponymous token against the Japanese yen on licensed crypto exchanges in the nation, news that helped the token’s value jump by almost 10%.
The green light that saw the eponymous token listed on BitTrade Japan, Binance Japan and other Asian trading platforms reflected a general push into the continent, as evidenced by a Twitter post that emphasized just how much the EOS Network Foundation (ENF) was growing there: per the tweet, EOS grew by over 700% across major social media channels with the largest spike attributed to a swelling ENF China Twitter Space audience. The Foundation also saw follow numbers on Telegram and Twitter jump, particularly in China.
Breaking new ground in the Land of the Rising Sun may have been a monumental milestone, but the ENF had already demonstrated its eagerness to penetrate Asia, which is one of the most popular regions for its validator network.
Crypto Welcomed with Open Arms
Last April ENF Executive Director Yves La Rose confirmed meetings with InvestHK, a department of the Hong Kong government responsible for direct investment into the region. The firm’s digital technology subsidiary Cyberport subsequently made resources available to EOS-related initiatives, while the Foundation promised to “help coordinate resources for others in the EOS ecosystem looking to establish themselves in Hong Kong.”
La Rose spent much of 2023 working to open up new Asian markets for EOS, making appearances at Korea Blockchain Week, Token2049 in Singapore, and WebX in Tokyo. After watching a speech by Japanese Prime Minister Fumio Kishida at the latter, La Rose tweeted, “While the West continues to antagonize blockchain companies, Asia is welcoming us in with their arms wide open. In Asia, the future is bright for crypto!”
In a November op-ed for Forkast, meanwhile, the ENF boss cited the growing trend of support for tokenization throughout the continent, highlighting that “governments such as Hong Kong and Thailand are not just acknowledging its potential for real-world assets – policymakers are actively shaping its use.”
Hong Kong, where the ENF maintains an office, has become something of a crypto hub, recently becoming the first home for spot cryptocurrency exchange traded funds (ETFs) in Asia when half a dozen spot BTC ETH launched in late April. Although crypto is technically banned in mainland China, many consider it telling that Hong Kong has been permitted to bloom into a global digital asset hub. Indeed, its Finance Secretary Paul Chain recently penned a blog arguing that now is the right time to push web3 adoption in the region, noting that the crypto industry reminded him of the early days of the internet.
Seychelles-based exchange platform Bitget evidently shares this bullish prognosis, having last year announced the creation of an Asia-focused web3 war chest to the tune of $100 million. The Monetary Authority of Singapore, meanwhile, committed $150 million Singapore dollars ($111m USD) over three years to “support innovative fintech solutions arising from emerging technologies such as Web3.”
Why Web3 is Flourishing in Asia
To what can we attribute the growing proliferation of web3 market opportunities in Asia, particularly Hong Kong, Singapore and South Korea? In truth, it’s a combination of friendly and open-minded regulators – particularly when compared to the U.S. – and access to both top developer talent and cash-rich tech investors.
In developing countries like Thailand and Indonesia, a high percentage of adults also remain underbanked, creating ample opportunities for greater retail use of cryptocurrency. Notably, 90% of Asian crypto investors are under 40, a much higher percentage than young investors in the US which constitute 70% of the total figure. This alone suggests that Asia will gradually carve out a bigger piece of the global web3 pie.
Given its rich gaming history, Asian countries have shown particular interest in the gamified finance (GameFi) space, funding countless blockchain-powered play-to-earn (P2E) projects that reward successful players with tokens. Perhaps the best-known P2E game, Axie Infinity, was developed by Vietnamese startup Sky Mavis and boasts a market cap of over $640 million. Although the U.S. continues to lead on GameFi funding, most of the development occurs in Asia.
One thing is clear: if web3 technologies are going to reshape the global economy, Asia will have a significant role to play, buoyed by the buzz emanating from the numerous conferences and events hosted there, growing government support, and enterprise adoption. Blockchain projects who neglect to pursue partnerships and nurture users in the continent are leaving opportunities on the table and surrendering the initiative to competitors.