Elroy Cheo, co-founder and architect of influential Web3 collective ARC, is on a mission to redefine the dynamics of digital communities.
Cheo and fellow entrepreneur Kiat Lim, the son of billionaire businessman Peter Lim, have made ARC right into a hub for collaboration for the worldwide Asian diaspora, enabling members to make use of a Stellar NFT and a Soulbound Token referred to as Fyrian to get entry to the ARC app, in addition to unique occasions and merchandise. Cheo’s imaginative and prescient is to construct a meritocratic community rooted in shared targets and collective motion.
This collection is delivered to you by Consensus Hong Kong. Come and expertise essentially the most influential occasion in Web3 and Digital Property, Feb.18-20. Register at present and save 15% with the code CoinDesk15.
Right here, Cheo discusses his imaginative and prescient for ARC, how his background in property improvement and music has influenced his strategy and why Asia is uniquely positioned to steer the following section of NFT innovation. Cheo can be a speaker at Consensus Hong Kong in February.
The next interview has been edited for readability and brevity.
How have your private experiences formed your strategy to creating and constructing ARC?
My journey is a bit unconventional — I began in commodities and property improvement. Earlier than crypto, my final massive challenge was overseeing a mega-city improvement in China. After I first arrived, it was barren land, simply fields and farmers. We purchased the land, constructed infrastructure and now it’s a bustling metropolis with a excessive GDP. That have caught with me — seeing how one can carry folks collectively to create one thing significant out of nothing.
In 2016, I acquired into crypto because of my uncle — a 73-year-old software program developer. We labored on a blockchain-based music copyright challenge to sort out siloed databases. Disputes over possession are so widespread within the music trade and blockchain felt like the proper answer to consolidate possession information. Even at present, that challenge’s nonetheless alive, and I’m proud it by no means relied on a token to outlive.
That basis as a builder formed how I view crypto — it’s not nearly investing or hypothesis; it’s about creating worth. That led to ARC, a Web3 collective impressed by Balaji Srinivasan’s community state concept. Whereas Srinivasan talks about these communities turning into nation-states (one thing we’re not doing), we’re targeted on constructing a digital-first establishment pushed by alignment and collective motion.
The phrase “neighborhood” will get thrown round quite a bit in Web3, typically shedding its that means. How does ARC create real connections and keep grounded in ideas?
Group isn’t nearly numbers or ground costs; it’s about relationships. With out bonds between members, you’re constructing an viewers, not a neighborhood. We realized that members worth 4 issues. First, entry to skilled networks, which implies curated connections with builders and buyers. Second, alternatives to generate income, comparable to token allocations to investments. Third, life-style experiences, comparable to assembly somebody like soccer star Cristiano Ronaldo, or participating in unique model partnerships. Lastly, development, whether or not it’s by means of discovering a job or receiving private mentorship.
We additionally promote a “give worth to obtain worth” ethos. This concept is drawn from the idea in Chinese language tradition of guanxi and emphasizes mutual help. Members aren’t simply right here to “ask for alpha.” They help each other.
What units Asian Web3 communities aside from their Western counterparts?
One massive distinction is how vocal Western communities are. They dominate crypto Twitter, whereas Asians are usually extra reserved. Culturally, platforms like Twitter aren’t as broadly used right here — Chinese language customers, as an example, are extra energetic in non-public WeChat or Telegram teams.
Regardless of that, Asian liquidity is very large. A small Chinese language neighborhood can drive $1 billion in DeFi protocol TVL in a day, which is uncommon within the West. At ARC, we acknowledge this energy but additionally encourage members to interact extra publicly. Asia is a Web3 powerhouse, and it’s time we seize mindshare, not simply liquidity.
How do NFTs evolve, particularly with respect to digital id and utility?
The shift towards pseudonymity excites me. Individuals are shifting from polished profiles on Fb or LinkedIn to avatars. It’s empowering — children can conceal behind a PFP, but their abilities and data shine by means of. At ARC, we’re exploring NFTs as standing symbols. Think about strolling right into a lodge or occasion, and your NFT provides you on the spot recognition. Past collectibles, NFTs can characterize experience or achievements, like badges on Stack Overflow. It’s about creating digital identities with real-world impression.
With ARC’s membership capped at 888, how can the group’s exclusivity and status-driven mannequin proceed to scale?
Exclusivity works when it’s tied to model worth and correct neighborhood administration. We’ve stored ARC small — 888 members — as a result of it permits us to give attention to high quality over amount. However scaling is feasible with the best frameworks. Take a look at Reddit: one neighborhood supervisor oversaw tens of millions of customers by leveraging tips and moderation instruments.
The hot button is sustaining model status. For instance, we partnered with the posh boutique chain Version Resort earlier than the opening of its Singapore location. After I requested their director why they gave us particular therapy like unique hospitality charges to our members, he mentioned, “You’re ARC.” That’s the ability of name fairness. It’s about shortage, popularity and delivering constant worth. Additionally, ARC makes use of contributor techniques to incentivize energetic participation. For instance, prime contributors get entry to offers, occasions and distinctive experiences, guaranteeing that worth flows to those that add to the neighborhood.
What misconceptions do you see about NFTs, notably in Asia?
One widespread mistake is viewing NFTs purely as income streams. Many Asian IPs and types nonetheless strategy NFTs as transactional relatively than as instruments for neighborhood constructing. I imagine NFTs can transfer past hypothesis to foster community-driven development. For instance, think about a boba store utilizing NFTs to transition clients into members. As a substitute of a standard advertising funnel, the NFT creates a non-linear expertise the place members keep engaged and assist promote the model organically. It’s about creating advocates, not simply clients.
What excites you about Web3 innovation in Asia proper now?
Expertise. Asia is brimming with sensible builders — Vietnamese, Chinese language, Singaporean. The problem is internationalizing their initiatives due to language boundaries. However as infrastructure improves, I imagine Asia will cement itself as a frontrunner within the area. AI is one other thrilling frontier. General, I’m thrilled to see Southeast Asia main innovation in DeFi and NFTs.
Having launched throughout a bear market in January 2022, what recommendation do you’ve got for builders within the Web3 area?
Construct with ardour. Narratives in crypto change shortly, and with out ardour, it’s simple to surrender. A variety of founders burn out as a result of they lose sight of their objective. My recommendation: keep hungry, keep curious and deal with your initiatives as social experiments. Fast execution with clear targets is vital.
Lastly, what are you most excited to share on-stage in HK?
I’d love to speak about what I do know finest — utilizing NFTs to construct communities. NFTs are a good way to create a model, a tradition and a powerful neighborhood. Then, down the road, a fungible token can coordinate these members towards a shared objective. It’s about beginning with a community-first strategy, which I name a Web3 social product.
At ARC, we’re making an attempt to construct a digital-first establishment with a extremely aligned neighborhood. This idea of digital communities has solely actually flourished post-COVID, because of instruments like Zoom and Google Meet bringing folks collectively on-line.