Focus on South and Southeast Asian markets, untapped crypto treasures
author:Ignas | DeFi Research
Compiled by: Xiaobai Navigation coderworld
along withcryptocurrencyAs it develops into a global industry, the dominance of KOLs in Western and English-speaking countries may cause us to overlook opportunities outside the West.
For example, in myPrevious blog post on the current state of the marketI was surprised to find that OpenSocial has more users than Farcaster or Lens, despite having much less attention on the X platform. What is the secret of their success? Indonesia, Vietnam and India account for the majority of the user base.
So, in this blog post, I teamed up with Mai, the brains behind the Pink Brains official X account, to share insights on the South Asian crypto market.
We also interviewed several people from South Asian countries to learn about their personal experiences.
South Asia – cryptocurrencyThe Wilderness
Token2049 新加坡无疑是 2024 年最大的cryptocurrency盛会，而让我们印象深刻的一点来自 Andy 的分享：“The Asian market is still untapped.”
While East Asia — such as South Korea, Hong Kong, Taiwan, China, and Japan — has emerged as a major cryptocurrency hub with clear regulatory policies, large institutional and professional investor involvement, Central and South Asia and Oceania (CSAO) has taken a different, often overlooked approach to cryptocurrencies that is not often seen on Western crypto Twitter.
Below is the Chainalysis Global Cryptocurrency Adoption Index map for 2024.
According to Chainalysis, the Central and South Asia and Oceania (CSAO) region is the third-largest cryptocurrency market, with over $750 billion in inflows between July 2023 and June 2024. That’s 16.6% of the global total. Let that number sink in. Only North America and Western Europe have higher numbers.
The Central & Southern Asia and Oceania region does stand out in the 2024 Global Cryptocurrency Adoption Index, with seven countries from the region ranking in the top 20: India (1), Indonesia (3), Vietnam (5), Philippines (8), Pakistan (9), Thailand (16) and Cambodia (17).
How are people in South Asia adopting cryptocurrencies?
Vietnam
First, let’s look at Vietnam, where the majority of our DeFi creator studio Pink Brains team is from, and they offer personal experience with the market. According to Triple-A, Vietnam is the country with the second highest cryptocurrency ownership rate. About 21.2% of the population holds cryptocurrency, second only to the UAE at 34.4%.
Vietnam also enjoyed strong profits last year, ranking third globally, according to Chainalysis.Cashed-in cryptocurrency earnings reach $1.18 billionThis is twice the gains in Spain and the Philippines and three times the gains in Thailand.
One of the reasons for this is the Vietnamese government’s ambiguous stance on cryptocurrencies. While cryptocurrencies are not banned, their actual use, such as payments or mortgages, is not allowed. This makes holding cryptocurrencies attractive, although the real adoption rate still lags behind other Southeast Asian countries.
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For most Vietnamese crypto investors, centralizationexchange (CEXs) are the first choice. Binance, Bybit, OKX and BingX are the most popularexchange, while Coinbase has a small market share due to language barriers and complex KYC processes. Trading and holding cryptocurrencies on CEXs remains the most common investment strategy.
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Airdrops and crypto mining are very popular here. You’ll see a lot of Telegram and Facebook groups sharing tips, “hidden treasure” alerts, andTokenFree gifts.In fact, buyingcloneAccounts, forgery KYC It’s very easy and cheap to set up a robot, or a robot with little hassle.This makes Sybil attacks from Vietnamese farmers a big challenge for the protocol. Some of the big airdrops you’ll hear about include Arbitrum, LayerZero, Aptos, and zkSync.
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越南的大多数投资者并不是经验丰富的交易者。他们主要寻求快速获利，将加密货币视为主职工作之外的副业或改变人生的机会。资深投资者通常在去中心化交易所 (DEXs) 上寻找低市值Token, while holding a large amount of assets on centralized exchanges (CEXs). At the same time, new investors since 2022 often chase airdrops and rebate rewards. Experienced traders usually lose money in major black swan events (such as FTX or Luna), while newbies often suffer losses due to false KOL signals, scams or excessive leverage.
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Vietnam is a top country in international mathematics competitions and alsoBlockchainA hub for development talent. You may have heard of well-known names like Loi Luu (Kyber Network) and Vu Nguyen (Pendle), but there are also some notorious serial scammers here, like the guy behind Whale Markets!
Note: My team is very disgusted with this person. Please see the discussion above to understand how he is undermining the interests of investors. Mai also told me that retail banking and non-cash payments are developing rapidly in Vietnam. Vietnam is moving along a similar path to China, with digitalwallet, banking apps, and credit cards are gradually replacing cash, especially in big cities. This change is good news for Web3, creating conditions for the popularization of crypto payments, as is currently the case in Singapore. More and more large companies are starting toBlockchainTechnology is integrated into their business.
We have already seen some initial tests in the banking industry, e.g.HSBC VietnamFirst L/C payment made in real timeBlockchain实验。这些尝试表明，越南企业对区块链技术非常关注。
But we still need to wait for the legal framework to be further opened up to cryptocurrencies.
India
Despite India's changing regulations and taxes, the country remains a major player in the global crypto market. India imposes taxes of up to 30% on crypto gains and 1% on all transactions, which has led some investors to look for less restrictive international exchanges. Despite these obstacles, cryptocurrencies are growing rapidly in India. The rise of innovative crypto startups in India shows the need for more favorable taxationXiaobai Navigationpolicies and clearer regulations to keep this momentum going.
I asked on X Hitesh.eth What makes India unique. In addition to his unique insights on cryptocurrencies, Hitesh alsoDevelop a Platform (DYOR)，帮助人们更轻松地理解加密基础知识。印度拥有最大的失业青年群体，他们渴望为获得激励而努力。如果操作得当，应用程序可以通过代币和积分的形式引导这些激励，就像过去在 Axie 中看到的那样。在基础设施方面，印度拥有一些最优秀的开发者资源，其成本远低于欧盟和美国。
He said, "More than 50%CommunityThe relevant positions are filled by Indians, and many more are eager to join the space.” But the temporary jobs and high aspirations of the cryptocurrency “have led to some problems, as shown by some airdrops in the past, creating a false impression of Indians. However, this perception should not be generalized as it is more case-specific than representative.”
Indonesia is one of the fastest growing markets in terms of transaction volume.
According to a product manager at Indonesian cryptocurrency exchange Pintu, the growth in crypto activity is driven primarily by speculation. "Many people still see crypto as a way to make a quick profit," he said. "Now, a lot of traders turn to Telegram groups for signals, just like they used to do with stock trading, but the activity in the crypto space is even more intense because new tokens are constantly emerging." He also said that stricter rules at the Indonesian Stock Exchange may be driving people toward cryptocurrencies. "Since the new full-bid auction measures have made stock trading more stringent, some investors are looking for alternatives like cryptocurrencies."
Indonesia stands out in terms of decentralized exchange (DEX) and decentralized finance (DeFi) activity compared to regional and global averages.
This has been Eli5DeFi on XHe said: "Many Indonesians participate in cryptocurrency trading, usually starting with meme coins or airdrops because they are simpler and more attractive. Especially airdrops, which usually only require time and effort to participate."
He added: “We have been using TON applications recently, and some people have even built their ownCommunityCome to mine and play $DOGS,$NOT and $HAMSTER.”
随着印度尼西亚人变得更加精通加密货币，收益 farming、质押和去中心化金融 (DeFi) 项目越来越受欢迎。这一增长形成了一个新的“加密狂热者”社区，超过一半的投资者是千禧一代和 Z 世代，他们寻求新兴科技和快速利润。
DeFi is also on the rise, and there are many DeFi builders from Indonesia – Eli5DeFi
Here are some famous examples:
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@0x_eunice – Monad Co-founder
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@Mariobern – Pyth Co-Creation
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@bradydonut – HawkFi Co-founder
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@BrianLimiardi – Copra Co-Founder
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@smsunarto – Founder of Argus Labs
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@bizyugo – No. 1, Debank
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@mathdroid – Pandora
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@PatriaAbditiar – Sociocat
Singapore
While countries like Indonesia and Vietnam have seen cryptocurrency adoption driven by “cryptocurrency degradation” and the promise of quick gains, the story is different in Singapore.
Saprolings (Web3 Incubator)Ronald Chan of CoinDesk told me that after China shut down crypto companies, there was a surge in the number of crypto companies in Singapore. They chose Singapore for the following reasons:
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Geographical proximity to China
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Profound Chinese culture
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Relaxed political environment
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Low tax rate
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Large Chinese-speaking population
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Free movement of capital (including Bitcoin)
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A strong legal system (this is very important)
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Well-educated people to run the business
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A strong financial centre in the region
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There are few other options in the area
“We protect ourselves by being the bank that is the leader of our neighbouring countries.” – Ronald Chan
Second, regulatory developments and merchant services show that cryptocurrencies have greater potential than just trading and investing. Ronald noted that Singapore “grants banking licenses to both local and foreign banks to level the playing field, unlike many other countries.”
Additionally, Singapore "has a nationwide QR code scanning system similar to China's WeChat Pay and Alipay (called Paynow QR), which most people use. Mastercard and Visa are available everywhere, but users and merchants are not happy because both sides have to pay extra fees."
What’s more, Grab, the super app many people use for ride-hailing, food delivery and other services, is starting to allow users to pay for electronic payments with cryptocurrency.walletCurrently, users can use Bitcoin, Ethereum, XSGD (Singapore’s local stablecoin), Circle USD and Tether payment.
Crypto payments for merchant services in Singapore reached nearly $1 billion in the second quarter of 2024, the highest level in two years.
This is an interesting shift, especially in a market where traditional payment systems are already efficient, and it shows that cryptocurrencies are gradually becoming a common asset for more people.
Meanwhile, more than 75% of XSGD transfers were for $1 million or less, with nearly 25% transfers being for less than $10,000, a clear sign of a growing base of retail users in the local crypto market.
The reason for the success is clear regulation, which enhances trust in stablecoins.
In 2023, the Monetary Authority of Singapore (MAS) laid out guidelines for stablecoins, while in 2024, it introduced cryptocurrency custody and licensing rules.
This demonstrates the positive impact that clear regulation can have on cryptocurrency adoption in the United States.
Case Study: TON’s Successful Entry into South Asian Markets
It’s surprising that TON’s click-to-earn game is very popular in South Asia. Personally, I tried it but the rewards I got were not worth it for me.
You might underestimate TON because of its over-distributed airdrops and “brainless” click-to-earn games, but it’s actually consistent with their goal of bringing cryptocurrency into everyone’s pocket.
By receiving free tokens, a new wave of users can start learning how to trade on decentralized exchanges (DEXs), add liquidity, stake, and gradually explore other aspects of the ecosystem.
Do you know where these users are mainly from? CIS countries and South Asia.
Notcoin’s website (notco.in) received over 66% visits from CIS countries. This was followed by Asian countries such as Indonesia, Vietnam, China, and India. Getgems.io and Hamster Kombat showed similar trends, consistent with Telegram’s user base.
The Telegram Mini Bot project that offers free tokens is similar to the rise of Axie Infinity in the Philippines.
TON 区块链的成功归结于两个高采用率的领域：免费空投和点点小游戏。
Free airdrop areas
Everyone is tired of the points-for-airdrop campaign. That’s what makes Telegram’s free airdrop scenario unique. It leverages Telegram’s 900 million users to distribute tokens like DOGS. DOGS started out as a meme and gained traction for its fair distribution and lack of a presale. This attracted new users to the blockchain and made DOGS different from typical crypto tokens.
DOGS was soon listed on major centralized exchanges (CEX) such as Binance. The airdrop amount waswallet The amount ranges from $10 to $60. This may not sound like much to many Western investors, but users can swipe through multiple accounts. For many people in developing countries, these airdrops provide a new source of income during economic difficulties.
Dot Dot Games
Tap-and-click games, such as Hamster Kombat, are growing rapidly in the South Asian country. In just three months, it reached 239 million registrations, making it one of the most popular tap-and-click games.
It also achieved over 10 million YouTube subscribers in just one week. That's crazy. That's unprecedented numbers in many Western countries.
According to Bitget Premarket data, the total market value of its tokens is $920 million, which means the airdrop could be worth around $550 million.
Click-to-earn games like Hamster Kombat have quickly gained a lot of attention among crypto influencers in Southeast Asia due to simple game mechanics, referral campaigns, and a great social presence.
These influencers are also very popular on TikTok and X, sharing referral links and spreading the word about this type of game.
Summarize
South and Southeast Asia is one of the most populous regions in the world, with a young, tech-savvy population, making it a key market for cryptocurrency businesses. It is now the third most important market after the United States and Western Europe.
However, because countries in the region vary significantly in terms of income, government regulations, and economic conditions, it is difficult for companies to develop strategies specifically for each country.
Ton seems to be doing well with its strategy targeting the speculators’ market, and the acceptance of crypto payments is also increasing.
The article comes from the Internet:Focus on South and Southeast Asian markets, untapped crypto treasures
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