Asia's Entertainment Revolution: Blockchain as Backbone
ASIA'S ENTERTAINMENT REVOLUTION: BLOCKCHAIN AS BACKBONE
At Blockchain Coinvestors, our investment strategy is to gain global exposure in the early stage to companies and projects that are using blockchain or distributed ledger technology to build powerful new businesses and solutions. Just as the Internet transformed communications and content for all industries, so blockchain holds out the prospects of being a similar horizontal technology able to substantially improve the ways every industry works. Of course, to the extent to which an industry has already become digitalized, blockchain based solutions have the prospect of being quicker and easier to deploy. Today in this month’s letter from Hong Kong, we focus on just such an industry which is already showing rapid momentum as it uses the power of blockchain to transform itself.
Asia’s Entertainment Market: A Unique Opportunity
Asia is the largest entertainment market in the world. By 2027, its entertainment and media revenues are expected to exceed $1 trillion, according to PwC's Global Entertainment and Media Outlook 2023-2027. This growth is driven by the region's massive population, rapid digital adoption, and love for gaming, music, and media. For example:
China’s gaming industry generated $39 billion in revenue in 2023, making it the world’s largest gaming market.
South Korea’s K-pop industry contributed $5 billion annually to the country’s economy, with fans spanning across the globe.
Asia’s entertainment industry is unique because it blends traditional culture with modern technology. Blockchain has become a key driver of innovation in the region, enabling play-to-earn (P2E) gaming, NFT-based fan engagement, and new digital economies.
For investors, this is a golden opportunity. Asia leads globally in blockchain adoption, with its tech-savvy population ready to embrace various changes.
Play-to-Earn Gaming: A New Way to Play and Earn
Asia is at the center of the blockchain gaming revolution. According to DappRadar, blockchain gaming accounted for 42% of all blockchain activity in 2023, with Asia leading this trend. As examples:
Axie Infinity (Vietnam) - A Global Success Story: Axie Infinity became a household name in Vietnam during its peak years. Players could earn up to $20 daily by playing, a significant income in many developing regions. The game generated $1.3 billion in 2021, although its popularity has since declined due to market fluctuations.
GuildFi (Thailand) - Supporting Blockchain Gamers: GuildFi, a blockchain gaming guild based in Thailand, connects players to multiple games and helps them maximize rewards. By 2023, it had raised $6 million from investors like BNB Chain.
Thetan Arena (Vietnam) - MOBA game: Thetan Arena is a multiplayer online battle arena (MOBA) game where players can earn cryptocurrency by competing in thrilling battles. The game rewards players with Thetan Coin (THC) for their victories, while NFT heroes can be collected, traded, or sold for additional earnings. With its fast-paced action and competitive gameplay, Thetan Arena offers an exciting way to enjoy MOBA gaming while earning rewards through blockchain technology.
Play to earn is particularly attractive to end users where local market conditions favour approaches that allow work from home (or anywhere) monetization. For example, if pay rates are low by international standards; local jobs are few; or incremental revenue a necessity for enhancing life conditions, then the option to go onto your mobile device, complete a task, and earn real value, is highly attractive. In many parts of Asia, clicking to earn is becoming ubiquitous among some segments of the population. In the next section, we go deeper into how this works.
The Future of Blockchain Gaming in Asia
Web3 gaming in Asia offers exciting opportunities for players by combining entertainment with financial rewards. Through play-to-earn mechanics, players can earn cryptocurrency by participating in gameplay and contributing to the ecosystem, making gaming a viable income source for many in the region. Popular games like Axie Infinity gained traction for enabling players to earn income through breeding and battling digital creatures, fueling Web3 adoption. While the industry is now evolving toward play-to-enjoy models, the foundation of combining fun with economic value remains strong.
A key advantage of Web3 gaming is the true ownership of in-game assets enabled by blockchain technology. Unlike traditional games, players can buy, sell, and trade items on decentralized marketplaces, granting autonomy and tangible value to their gaming experiences. This shift toward player-owned economies fosters transparency and opens new revenue streams, allowing players to participate in thriving virtual economies and generate income in innovative ways. For gamers in Asia, this model represents a transformative approach to gaming, blending entertainment with financial empowerment.
For large IPs and brands the reality that their fans are willing to engage to earn, also brings additional opportunities to greatly and rapidly scale fan based communities. This is where we head next.
Fan Engagement Transformation Using Blockchain: NFTs and Phygital Experiences
In the Asia region, NFTs and blockchain are transforming fan engagement by redefining how fans interact with music, entertainment, and pop culture. With Asia's deep-rooted fan culture and its rapid adoption of digital technologies, blockchain-powered platforms are creating phygital experiences that blend physical and digital collectibles. Fans now have opportunities to own blockchain-certified merchandise, such as limited-edition albums, concert tickets, and exclusive access to virtual meet-and-greets with their favorite artists.
This innovation is particularly evident in K-pop, where NFTs are being used to connect fans globally with exclusive content like behind-the-scenes videos, unreleased tracks, and interactive virtual events. By offering authenticity, scarcity, and a sense of ownership, NFTs are building stronger communities of loyal fans across the region. As Asia continues to lead the charge in digital innovation, blockchain is becoming a cornerstone for immersive fan experiences, allowing artists to deepen connections with their audiences while unlocking new revenue streams.
Leading this shift is Fellaz, a Singapore-based Web3 platform offering fans digital collectibles, virtual events, and rewards tied to concerts and merchandise. Their partnership with Asia Nexus Entertainment highlights their dedication to integrating blockchain with K-pop. Other innovators, like Astar Network in Japan and Animoca Brands in Hong Kong, are expanding NFT-powered fan engagement across music and entertainment. Together, these efforts are transforming fan experiences, making them more interactive, personal, and immersive than ever.
Sony: Soneium™, a Public Blockchain Infrastructure by Sony Block Solutions Labs
Sony is one of the biggest entertainment companies in the world. It is based in Japan, and it is using blockchain to create new ways for fans to connect with its content. Sony is not just making games or movies anymore. It is building platforms where fans can own digital items and trade them.
Sony Group has developed Soneium™, a public blockchain infrastructure by Sony Block Solutions Labs in Singapore, aimed at making Web3 technology mainstream by addressing challenges like limited adoption and lack of use cases. As a Layer 2 solution for Ethereum, Soneium offers faster transactions, lower costs, and scalability while supporting applications such as Web3 games, NFT marketplaces, and entertainment services. It enables decentralized activity management through digital wallets and plans to integrate with Sony's diverse businesses to create innovative use cases, including protecting creators' rights and enhancing fan engagement.
Chairman Jun Watanabe stated, “We will create diverse businesses and new use cases with the aim of delivering customer value through Web3 technology and making people's lives richer and more colorful.” Director Sota Watanabe added, “Soneium has great potential to lead the world and make Web3 a daily reality for billions.” With a testnet launching soon, Sony aims to empower creators, strengthen fan communities, and establish Web3 as a tool for everyday use.
Empower Arts & Culture Through Blockchain
Blockchain is transforming the world of art and museums, creating new ways to preserve and share culture. It “democratizes access to art, fosters community involvement, and supports climate-conscious practices,” aligning perfectly with the mission of museums to educate, inspire, and connect. Platforms like Tezos, known for being energy-efficient and affordable, are leading this change by helping artists, collectors, and institutions adopt Web3 technologies.
Projects like the Museum of the Moving Image (MoMI) x Tezos partnership show how blockchain can bring art to life. This collaboration gives artists a platform to share their work and connect with global audiences in exciting new ways. Similarly, the Musée d’Orsay used blockchain for its Van Gogh exhibition, allowing visitors to mint NFTs as unique digital souvenirs. These keepsakes added a modern twist to the traditional museum experience.
In Asia, where rich traditions meet artistic innovation, Tezos is opening up new possibilities for smaller museums. By offering affordable tools for fundraising and audience engagement, such as fractional ownership of art and live NFT minting, blockchain is helping these institutions reach wider audiences. Platforms like Akaswap, a popular NFT marketplace for Asian creators, are showcasing how blockchain supports both traditional and digital art. Tezos also provides a secure and sustainable way for artists and institutions to preserve cultural assets, whether they are ancient artifacts reimagined as NFTs or new digital creations. Its reliable network and regular upgrades ensure these assets remain safe and future-proof.
As blockchain becomes part of Asia’s cultural scene, it’s clear this technology is not just about preserving the past. It’s about building a future where tradition and innovation work together to create something dynamic and lasting.
How to Gain Investment Exposure to Asian Blockchain Opportunities
Asia’s blockchain-powered entertainment industry is growing rapidly. From games to fan engagement to cultural preservation, blockchain is creating new opportunities. At Blockchain Coinvestors, we established our core investment thesis a decade ago, and we are excited in seeing a host of news confirming our investment thesis and strategy in Asia, which is one of our strategically-focused regions.
For investors, exciting as this investment theme and value creation opportunity maybe, it is hard to access. Our approach has been to partner and invest in several of the best Asian based blockchain venture capital firms. These are then a part of our fund of funds investment strategy. Several of them will be speaking at BlockTalk 2025 on March 19th should you wish to hear from them in person.
As a closing note, please contact any of our team at ir@BlockchainCoinvestors.com to learn more about our investment strategies as we prepare for closings in 2025.
Thank you for reading.
Joy Cai
Hong Kong
About Blockchain Coinvestors
Blockchain Coinvestors invests in blockchain businesses. Our vision is that digital monies, commodities, and assets are inevitable and all of the world’s financial infrastructure must be upgraded. Our mission is to provide broad coverage of early stage blockchain investments and access to emerging blockchain unicorns. Blockchain Coinvestors’ investment strategies are now in their 12th year and to date we have invested in a combined portfolio of 1,250 blockchain companies and projects including more than 110 blockchain unicorns. Visit us at www.BlockchainCoinvestors.com to learn more.
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