Over the past few years, Singapore has emerged as an attractive hub for blockchain startups. In light of the country’s progressive regulations, companies have been able to explore the benefits of crypto space freely. The success of platforms such as Koenhaco and Zilica has contributed to this development.
Even if new laws are enacted, local blockchain companies do not run the risk of going blind. The Monetary Authority of Singapore (MAS) recognizes the potential benefits of blockchain technology and has taken steps to protect the interests of both startups and retail customers.
As a result, we can get front row seats for new innovations in this space. From gaming to social media, the benefits of blockchain technology are being explored in various industries.
Despite the evolving startup scenario, crypto adoption in Singapore is still relatively low. A survey conducted by Triple A in 2021 estimates that only 9.4 percent of Singapore owns cryptocurrencies.
There could be several reasons behind this. For starters, there is a lot of skepticism around using crypto as an investment asset. MAS discourages retail customers from investing in crypto due to price volatility and risk of significant losses.
Also notorious for crypto space scams. In most cases, lost funds cannot be recovered and rarely through legal recourse.
Until now, the usefulness of crypto – as well as a speculative investment – has not been easily clear. Even with the advent of NFT, it seems that a huge majority of people are buying only in the hope of making a profit.
This seems to be changing as we get acquainted with concepts like GameFi and SocialFi. The purpose of these streams is to modify the way a company uses and distributes revenue.
Crypto tokens are being used to give users access to gaming platforms. They also give holders the right to participate in governance and to vote in the next phase of the project. Although the value of these tokens may fluctuate between users Can Consider them a speculative investment, not their primary purpose.
Here’s a look at Singapore startups that use these types of crypto-based utilities:
Play-to-earn gaming is one of the biggest crypto trends right now. It has become particularly popular in Southeast Asia, where some users have been able to make a living through games like Axis Infinity and Defy Kingdom.
In Singapore, companies like Engin, Ethlas, and G-Link are pushing the boundaries of GameFi.
Enjin is building a blockchain gaming ecosystem through its dedicated launchpad, Enjinstarter. Users are able to participate in early decentralized exchange offerings (IDOs) and raise funds for upcoming blockchain games.
Battlevers, for example, is a play-to-earn metaver that has raised US $ 200,000 through Enjinstarter. Those who participated in IDO received BattleVerse’s Native Crypto Token, $ BVC. It will be used to purchase in-game objects and give access to holders to a decentralized autonomous body (DAO), which manages metavers.
$ BVC can also be exchanged for other cryptocurrencies and converted into fiat money.
With traditional games, manufacturers get all the revenue from selling in-game items. GameFi changes this model around and offers prices for those who hold in-game currencies. Also, gamers can be part of the decision-making process and vote on future developments.
Both Ethlas and G-Link are working on their own blockchain gaming ecosystem, focusing on casual games that appeal to a wider market audience.
One of the primary concepts behind running these platforms is to reward gamers fairly for their time and effort. Currently, users are bombarded with advertisements for mobile games without getting anything in return. This is one of the possible revenue streams that could help redistribute GameFi.
Throughout the 2010s, we have seen the rise of social media influencers. It has been possible to make a living by creating content on platforms like YouTube and Instagram.
That being said, the distribution of revenue on these platforms was often unfavorable for manufacturers. Social media platforms hold the lion’s share of profits and influential people can only share the earnings after gaining a significant number of followers.
Singapore-based startups such as Kala Network and Bejeweled World are exploring SocialFi platforms, which easily reward users for creating content.
Scheduled to launch in the second quarter of this year, Kala Network’s social media platform will focus on investment and project research. Users will be able to engage in the economics of earning from the creation of the platform through a variety of activities including post creation, commenting or otherwise engaging.
Influencers who create a following on the platform will receive more dividends for their curated content.
Bejeweled World is moving towards online work that we saw during the epidemic. The platform is creating a metaverse for business activities where people can own virtual assets such as shopping malls and exhibition space.
In this environment, users will be able to host their own services such as video games and e-commerce stores. The concept revolves around creating a digital society that reflects the physical world.
When influential Irene Zhao of Singapore released her IreneDAO NFT collection, Simpfie emerged as an extension of SocialFi.
The concept is impressive and hopes to improve mobility among their fans. Zhao believes that NFTs can help evoke a sense of community that is missing on platforms like Instagram. Holders are able to communicate with each other in a discord group and be part of a governance process that determines how the revenue generated by NFTs will be used.
For other content creators following this model, SimpFi can help bring a direct source of revenue. They no longer have to rely on sponsorship and advertising. Instead, they will directly benefit from selling their NFT.
Fans will also be assured that their support is directly benefiting their favorite creators rather than third party platforms.
Tammy Tay is another influential Singaporean who is exploring this model and working to launch his own NFT collection. Since September 2021, Tay has been building NFTs that will serve as exclusive passes for Web3 and real-world events.
The next wave of crypto adoption
It seems that all these innovations are working to unboard more people in the crypto space.
In fact, it is becoming clear that crypto has its utility across different industries and there are various reasons why one might want to buy it.
It is not possible for a single project to take the next billion people to the blockchain. Instead, users will be attracted to the place when they find a utility that talks to them.
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Featured Image Credit: Axis Infinity / Finextra Research / Irene Zhao
Also read: Why are so many young investors now attracted to cryptocurrency and NFT?