Monday, September 25, 2023

The Indonesian NFT Gold Rush

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Shreya Christina
Shreya has been with for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

CEO at New Campus, a modern business school in Asia. Exploring the intersection between the future of work and learning with an Asian twist.

A new gold rush is gripping Indonesia’s tech sector. Despite a downturn in global technology and cryptocurrencyadventurous entrepreneurs from Indonesia are making waves in the world of Web3. Projects like karafuru, MindBlowon and Superlative Secret Societye.g. recently generated funding with successful non-fungible token mints.

Digitization has been identified as: an important growth strategy for Indonesia – by 2025 this could lead to: $150 billion in growth. This one still applies in 2022 as the country recovers from the pandemic. Market corrections and rising US interest rates challenge this prediction, however. Despite the bear market, new ventures are exploring web3 for their part in Indonesia’s digital economy. These projects can join the startups that endure the bear market to bolster the promise of the Indonesian tech sector.

What makes Web3 a viable marketplace? Why are so many Indonesian NFT projects emerging? What opportunities are there in this evolving domain? Let’s take a look at Web3’s role in the Indonesian economy and the prospects of NFTs. As CEO of a strategic learning partner for emerging technology companies in Southeast Asia, I love to delve into macro shifts to new ways to build and scale sustainable business practices.

The unprecedented benefit of gradual adoption

Despite the enthusiasm for digitization, digital adoption lags behind in Indonesia. Inadequate information and communication technology infrastructure and the dispersed nature of an archipelago population are stifling the demand for internet access. Urban centers are thriving through digital innovation, with early adopters making progress as they mature. As a result, the larger market enjoys a developed product ecosystem, while access is gradually expanded with the country’s evolving mobile Internet infrastructure.

This pattern of gradual adoption has led to: 2,300 tech startups, including 12 unicorns. This infectious entrepreneurial enthusiasm has spread to the Web3 frontier as more Indonesian internet users look for decentralized services.

Gradual adoption has also facilitated the introduction of technology for less advanced users. The prevalence of broad market products such as mobile gaming and online shopping have drawn welcome attention to Web3, further democratizing blockchain capabilities.

The Creator’s Economy

Entrepreneurial creators have launched all kinds of new projects to test the potential of decentralized crowdsourcing. Earlier this year, 22-year-old Sultan Gustaf Al Ghozali left his mark on the NFT world: Sell ​​933 selfies he had taken daily as NFTs for five years. The collection saw a trading volume of over $1 million on OpenSea. His unprecedented success led to what is now the Ghozali effect– others sell random items, from food to photos of ID cards, as NFTs.

Some of the larger NFT projects we see include Karafuru, a collaboration between the Museum of Toys and Indonesian artist Wede to release a collection of vibrant animated pop art characters in a fully subscribed and actively traded profile photo project. (Full disclosure: I am an investor in Karafuru.) In addition to the art being the original product, the team has developed a road map plans to deliver physical toys and real-life events.

We see other founders trying to emulate Karafuru’s success, promising creative ways to use their proceeds while the value of their intellectual property increases. Because NFT sales have the potential to compete with funding runs, NFT projects can be used to fund commercial and non-profit initiatives. This new financing model could accelerate Indonesia’s entrepreneurial potential.

The landscape of the gold rush

“In a gold rush, sell kicks,” as the saying goes. Selling tools for popular high-risk activities is a low-risk way to monetize a trend. Many solutions have evolved to facilitate blockchain development processes as the prevalence of Web3 increases. We see a similar pattern with the Web3 gold rush in Indonesia. There are already a number of NFT marketplaces in the country, including TokoMall, Paras and Kolektibel. These platforms feature prominently the work of Indonesian founders and creators, meeting the demands of a growing local market.

Indonesian content creators evangelize for the blockchain. Creators such as Raymond Chin and Kelas Kripto Cepod produce videos on blockchain fundamentals, crypto concepts and decentralized financial hazards. These conversations improve the country’s awareness of Web3. We are also seeing NFT communities grow on social media platforms like TikTok as web3 literacy increases, as startups close the skills gaps of developers with programming academies.

Take advantage of these opportunities

The unique circumstances in Indonesia enable the steady adoption of Web3. A larger portion of Indonesia’s digital population participates in building Web3 as project founders, patrons, donors, and developers. The government support adds business on the blockchain to the country’s comprehensive digitization strategy. The outlook for Indonesia is rosy and it is ready.

When assessing Indonesian Web3 market opportunities, here are some important things to keep in mind:

• Indonesia is the fourth most populous country in the world. The diverse population of more than 270 million people makes it an ideal place to experiment with new products and services.

Billions of Investment Dollars were pumped into Indonesian startups in 2020 and 2021. The country’s infrastructure and community will eventually mature, while investment in Web3 is likely to continue to rise.

• The country recently announced a digital nomad visa allowing remote workers to live on islands like Bali tax free. Indonesia is already a cheap location to build a startup, and now this visa requirement will make it more accessible.

• Indonesia has more than 200 million internet users. Easy access to devices also means that: almost 190 million of them use the internet via mobile. This is something to keep in mind when building communities and marketing campaigns through mobile apps and tech platforms.

Launching a Web3 project is no mean feat. Building a successful project in a bear market is even more difficult. That said, Indonesia is a fascinating breeding ground for entrepreneurs to tap into one of the world’s largest emerging economies with a strong base of Web3 early adopters. The opportunity to create a brand is now here. Great returns come with great risks. Will you be selling spades or looking for gold? Business Council is the leading growth and networking organization for entrepreneurs and leaders. Am I eligible?

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