Elroy Cheo, co-founder and architect of the influential Web3 collective ARC, is redefining the dynamics of digital communities. Together with fellow entrepreneur Kiat Lim, they have transformed ARC into a hub for collaboration among the global Asian diaspora, allowing members access to exclusive events and merchandise through the use of a Stellar NFT and a Soulbound Token, Fyrian. Cheo's aim is to build a meritocratic network based on shared goals and collective action.
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In this discourse, Cheo shares insights on his vision for ARC, how his background in property development and music influences his approach, and why Asia is primed to lead the next phase of NFT innovation. Cheo will be a speaker at Consensus Hong Kong in February.
How have your personal experiences shaped your approach to creating and building ARC?
My journey is unconventional — I started in commodities and property development. My last major project was overseeing a mega-city development in China. When I arrived, it was barren land, yet now it's a bustling city with a high GDP. This experience showed me how to bring people together to create something meaningful from nothing.
In 2016, I entered the crypto sphere, introduced by my uncle, a software developer. Together we worked on a blockchain-based solution for music copyright. This foundation shaped my view of crypto — it’s not merely about investment; it’s about creating value. This mindset contributed to the formation of ARC, inspired by Balaji Srinivasan’s network state theory.
How does ARC create genuine connections and maintain its foundational principles?
Community to us isn’t just about numbers or floor prices; it’s the bonds made between members. We emphasize access to professional networks, monetization opportunities, lifestyle experiences, and personal growth. Moreover, we believe in mutual support — members are here to uplift each other.
What distinguishes Asian Web3 communities?
Western communities are often more vocal, leveraging platforms like Twitter, while Asian communities are more reserved, favoring private discussions on WeChat or Telegram. Nonetheless, Asian liquidity is substantial; a small community can significantly impact DeFi protocols in ways that are rare in the West. We need to capture both mindshare and liquidity in Web3.
What excitement do you see regarding NFTs and their evolution in identity and utility?
The trend towards pseudonymity fascinates me. People are adopting avatars, enabling talent to shine through. At ARC, we consider NFTs as status symbols that could recognize members in various settings. It’s a way to create digital identities that translate into real-world significance.
What do you envision for ARC’s exclusivity and scalable model?
Exclusivity is effective when aligned with brand value. While ARC’s membership is capped at 888, maintaining quality is paramount. Strategic brand partnerships and community management can facilitate scaling while preserving prestige.
Through collaborations and contributor systems, we ensure that value recirculates within the community.
What misconceptions about NFTs do you encounter, especially in Asia?
Many believe NFTs are mere revenue tools. I advocate for their potential to foster community-building instead. For instance, a boba shop could utilize NFTs to engage customers, creating advocates rather than just patrons.
What excites you about the current landscape of Web3 innovation in Asia?
Talent is thriving in Asia, and as infrastructure enhances, I see us becoming leaders in this field. Innovations in AI also hold great potential, especially with Southeast Asia leading advancements in DeFi and NFTs.
What advice do you offer builders in the Web3 space?
Build with passion. The crypto narrative can shift swiftly, and staying true to one's goals is crucial to avoid burnout. Embrace projects as social experiments and execute rapidly with a clear focus.
What insights do you hope to share at HK?
I intend to discuss using NFTs to build communities effectively, initiating from a community-first standpoint. This approach will cultivate strong engaged networks aimed towards shared goals as a Foundation for future developments.
