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 known 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 objectives and collective motion.
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Right here, Cheo discusses his imaginative and prescient for ARC, how his background in property improvement and music has influenced his method and why Asia is uniquely positioned to steer the subsequent part 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 method to creating and constructing ARC?
My journey is a bit unconventional — I began in commodities and property improvement. Earlier than crypto, my final massive mission 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 convey individuals collectively to create one thing significant out of nothing.
In 2016, I bought into crypto due to my uncle — a 73-year-old software program developer. We labored on a blockchain-based music copyright mission to deal with siloed databases. Disputes over possession are so frequent within the music business and blockchain felt like the proper resolution to consolidate possession information. Even as we speak, that mission’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 “group” will get thrown round quite a bit in Web3, typically dropping its which means. How does ARC create real connections and keep grounded in ideas?
Group isn’t nearly numbers or flooring costs; it’s about relationships. With out bonds between members, you’re constructing an viewers, not a group. We realized that members worth 4 issues. First, entry to skilled networks, which suggests curated connections with builders and traders. Second, alternatives to earn money, akin to token allocations to investments. Third, way of life experiences, akin to assembly somebody like soccer star Cristiano Ronaldo, or participating in unique model partnerships. Lastly, progress, whether or not it’s by 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 other than 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, for example, are extra energetic in non-public WeChat or Telegram teams.
Regardless of that, Asian liquidity is very large. A small Chinese language group can drive $1 billion in DeFi protocol TVL in a day, which is uncommon within the West. At ARC, we acknowledge this power but additionally encourage members to have interaction 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 identification and utility?
The shift towards pseudonymity excites me. Persons 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. At ARC, we’re exploring NFTs as standing symbols. Think about strolling right into a resort or occasion, and your NFT provides you on the spot recognition. Past collectibles, NFTs can symbolize 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 group administration. We’ve stored ARC small — 888 members — as a result of it permits us to deal with high quality over amount. However scaling is feasible with the fitting frameworks. Have a look at Reddit: one group supervisor oversaw tens of millions of customers by leveraging tips and moderation instruments.
The secret’s 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 remedy like unique hospitality charges to our members, he stated, “You’re ARC.” That’s the ability of name fairness. It’s about shortage, repute and delivering constant worth. Additionally, ARC makes use of contributor methods to incentivize energetic participation. For instance, high contributors get entry to offers, occasions and distinctive experiences, guaranteeing that worth flows to those that add to the group.
What misconceptions do you see about NFTs, significantly in Asia?
One frequent mistake is viewing NFTs purely as income streams. Many Asian IPs and types nonetheless method NFTs as transactional slightly than as instruments for group constructing. I imagine NFTs can transfer past hypothesis to foster community-driven progress. For instance, think about a boba store utilizing NFTs to transition prospects into members. As an alternative of a standard advertising and marketing 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 prospects.
What excites you about Web3 innovation in Asia proper now?
Expertise. Asia is brimming with good 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 house. AI is one other thrilling frontier. Total, 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 have got for builders within the Web3 house?
Construct with ardour. Narratives in crypto change shortly, and with out ardour, it’s simple to surrender. Loads of founders burn out as a result of they lose sight of their function. My recommendation: keep hungry, keep curious and deal with your initiatives as social experiments. Speedy execution with clear objectives 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 an effective way to create a model, a tradition and a robust group. Then, down the road, a fungible token can coordinate these members towards a shared purpose. It’s about beginning with a community-first method, which I name a Web3 social product.
At ARC, we’re attempting to construct a digital-first establishment with a extremely aligned group. This idea of digital communities has solely actually flourished post-COVID, due to instruments like Zoom and Google Meet bringing individuals collectively on-line.
