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Vietnam's Cryptocurrency Market: Flourishing Development of Venture Capital and NFT Community.

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Original Title: "Entering the Vietnamese Cryptocurrency Market: VC Interest is Growing, NFT Communities are Emerging, and the New Frontier of Cryptocurrency is Moving East"

Original Author: TENG YAN

Translated by: Deep Tide

If I have to firmly hold onto one belief, it is 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 busy cryptocurrency trading centers in South Korea and Japan to the emerging markets in 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's foray into the cryptocurrency field, despite the mainland itself being largely closed off.

This is what happened?

Asia is a hotbed of technological innovation. Companies and developers from China, South Korea, and Singapore are often at the forefront of new technology trends.

Asia has a high mobile penetration rate and digital literacy level, providing an ideal environment for the adoption of digital currencies. As smartphones become more affordable and internet access expands, more and more Asians are connecting to the digital financial world.

In many parts of Asia, a significant proportion of the population either do not have bank accounts or have limited access to 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.

Dynamic Vietnam

Last week, I went to Vietnam, a country that is emerging in the field of cryptocurrency. Vietnam has a population of 98 million, and some people boast that nearly 50% of its population has used cryptocurrency, making it the country with the highest adoption rate of cryptocurrency in the world.

When talking to locals, this "50%" statistic may be exaggerated.

The multiple wallets of Airdrop Hunter have driven this exaggerated data growth.

Most "ordinary people" still believe that cryptocurrency is a scam or a get-rich-quick scheme.

When you step into Vietnam, you will immediately feel an indescribable vitality and active atmosphere. The population is young and full of energy, ready to strive. Although language may be a barrier, those who are proficient in English have an important 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 contrast, Singapore has only a pitiful 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 is less important. We are still in the early stages of Web3 adoption and it is uncertain when we will reach a turning point. Therefore, being able to build and iterate over many years without constantly worrying about running out of funds is an important advantage.

I firmly believe that more teams should consider outsourcing a part of their operations. With the rise of tech 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.

Vietnam's interest in venture capital is growing

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

I have met venture capitalists from various countries who take the time to pay attention to the Vietnamese market, establish local connections and resources, and look for the next big startup company. Vietnam's valuations are usually more reasonable, making it an attractive market for investors.

Everyone's question is: Who will be 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-tier local venture capital firm and ecosystem builder. If you wish to enter the Vietnamese market, you can contact them.

K300 Ventures is another well-known venture capital firm in Vietnam, investing in both local and other regions.

Coin98 Wallet is often referred to as the "Binance" of Vietnam, with its subsidiaries including an exchange, media, and venture capital department.

Ancient8 is the largest Web3 gaming guild in Vietnam and also serves as the infrastructure layer for GameFi.

NFT Community's Rise

The NFT community in Vietnam is also thriving. 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 excellence and passion. AANC is committed to education, research, and helping people find jobs in the NFT industry.

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

There are several other projects related to NFT that are emerging in Vietnam, including:

Aura Network, a Cosmos-based NFT chain;

SeekHYPE, a NFT marketplace;

Darenft, a NFT infrastructure protocol;

Oxalus, a social commerce platform for NFTs.

NFT Discussion Highlights

During the Ho Chi Minh period, I participated in several NFT group discussions. While preparing to answer these interesting questions, I took some notes and would like to share them 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 screwed?

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 to rise 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 NFTs as a technological tool. I consider myself part of this camp.

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

I believe almost everything will have an NFT form, at least all digital things. NFT is essentially the property rights layer of the Internet.

Luxury brands like LV, as well as large consumer brands like Nike and Starbucks, have already done some substantial work in the NFT space. For example, Nike is using NFTs as a new tool to build their brand and interact with their digitally native young audience.

Nowadays, 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 become 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 to this field and make it easier for them to express their creativity using Web3 tools. This includes artists, entrepreneurs, musicians, influencers, and more.

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

This conforms to the law of number games: many people will try and fail, but a few will succeed beyond our imagination.

NFT will become the foundational layer for new intellectual property creation, whether it be in film, gaming, or animation.

Through early communities, creators can quickly receive feedback and iterate on successful elements while shelving unsuccessful ones. The entire process is more streamlined and efficient.

Due to ownership, your community is more motivated to participate and remain loyal.

Vietnam and the Early Stage of Web3

It won't take off immediately - I guess 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 coming years.