Elroy Cheo, co-founder and architect of the influential Web3 collective ARC, is on a mission to redefine the dynamics of digital communities.

Cheo and fellow entrepreneur Kiat Lim, son of billionaire businessman Peter Lim, have made ARC a hub of collaboration for the global Asian diaspora, allowing members to use a Stellar NFT and a Soulbound Token called Fyrian to access ARC app, as well as exclusive events and merchandise. Cheo’s vision is to build a meritocratic network rooted in shared goals and collective action.

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Here, Cheo discusses his vision for ARC, how his background in real estate development and music has influenced his approach, and why Asia is uniquely positioned to lead the next phase of NFT innovation. Cheo will be a speaker at Consensus Hong Kong in February.

The following interview has been edited for clarity and brevity.

How have your personal experiences shaped your approach to creating and building ARC?

My journey is a bit unconventional – I started with raw materials and property development. Before crypto, my last big project was overseeing a mega city development in China. When I first arrived it was barren land, just fields and farmers. We bought the land, built infrastructure and now it’s a busy city with a high GDP. That experience stuck with me – seeing how you can bring people together to create something meaningful out of nothing.

In 2016, I got into crypto thanks to my uncle – a 73-year-old software developer. We worked on a blockchain-based music copyright project to tackle siled databases. Disputes over ownership are so common in the music industry, and blockchain felt like the perfect solution to consolidate ownership records. Even today, that project lives on, and I’m proud that it has never depended on a symbol to survive.

The foundation as a builder shaped how I view crypto — it’s not just about investment or speculation; it’s about creating value. That led to ARC, a Web3 collective inspired by Balaji Srinivasan’s network state theory. While Srinivasan talks about these societies becoming nation-states (something we do not), we are focused on building a digital-first institution driven by adaptation and collective action.

The word “community” gets thrown around in Web3 and often loses its meaning. How does ARC make real connections and stay grounded in principles?

Community isn’t just about numbers or floor prices; it’s about relationships. Without bonds between members, you build an audience, not a community. We realized that members value four things. First, access to professional networks, which means curated connections with builders and investors. Second, opportunities to make money, such as token allocations for investments. Third, lifestyle experiences, such as meeting the likes of soccer star Cristiano Ronaldo or participating in exclusive brand partnerships. Finally, growth, whether it’s through finding a job or receiving personal mentorship.

We also promote a “give value to receive value” ethos. This idea is taken from the concept in Chinese culture of guanxi and emphasizes mutual support. Members aren’t just here to “ask for alpha.” They support each other.

What distinguishes Asian Web3 communities from their Western counterparts?

A big difference is how vocal Western societies are. They dominate crypto-Twitter, while Asians tend to be more reserved. Culturally, platforms like Twitter are not as widespread here – Chinese users are more active in private WeChat or Telegram groups, for example.

Despite that, Asian liquidity is massive. A small Chinese community can run $1 billion in DeFi protocol TVL in a day, which is rare in the West. At ARC, we recognize this strength, but also encourage members to engage more publicly. Asia is a Web3 powerhouse and it’s time we capture mindshare, not just liquidity.

How are NFTs evolving, especially in terms of digital identity and utility?

The shift towards pseudonymity excites me. People are moving from polished profiles on Facebook or LinkedIn to avatars. It’s empowering – children can hide behind a PFP, yet their skills and knowledge shine through. At ARC, we explore NFTs as status symbols. Imagine walking into a hotel or event and your NFT gives you instant recognition. In addition to collectibles, NFTs can represent expertise or achievements, such as badges on Stack Overflow. It’s about creating digital identities with real-world impact.

With ARC’s membership capped at 888, how can the organization’s exclusivity and status-driven model continue to scale?

Exclusivity works when linked to brand value and proper community management. We’ve kept ARC small – 888 members – because it allows us to focus on quality over quantity. But scaling is possible with the right framework. Look at Reddit: a community manager monitored millions of users by leveraging guidelines and moderation tools.

The key is to maintain the prestige of the brand. For example, we partnered with luxury boutique chain Edition Hotel prior to the opening of its Singapore location. When I asked their director why they were giving us special treatment like exclusive hospitality rates for our members, he said, “You’re ARC.” That is the power of brand equity. It’s about scarcity, reputation and delivering consistent value. ARC also uses contributor systems to encourage active participation. For example, top contributors get access to offers, events and unique experiences, ensuring that value flows to those who add to the community.

What misconceptions do you see about NFTs, especially in Asia?

A common mistake is to view NFTs solely as income streams. Many Asian IPs and brands still approach NFTs as transactional rather than community building tools. I believe that NFTs can move beyond speculation to foster community-driven growth. For example, imagine a boba store that uses NFTs to convert customers into members. Instead of a traditional marketing funnel, NFT creates a non-linear experience where members stay engaged and help promote the brand organically. It’s about creating advocates, not just customers.

What excites you about Web3 innovation in Asia right now?

Talent. Asia is full of brilliant developers – Vietnamese, Chinese, Singaporean. The challenge is to internationalize their projects due to language barriers. But as infrastructure improves, I think Asia will cement itself as a leader in the space. AI is another exciting frontier. Overall, I am excited to see Southeast Asia leading innovation in DeFi and NFTs.

Having launched during a bear market in January 2022, what advice do you have for developers in the Web3 space?

Build with passion. Narratives in crypto change quickly, and without passion, it’s easy to give up. Many founders burn out because they lose sight of their purpose. My advice: get hungry, get curious and treat your projects as social experiments. Fast execution with clear objectives is key.

Lastly, what are you most excited to share on stage in HK?

I would love to talk about what I do best – using NFTs to build communities. NFTs are a great way to create a brand, a culture and a strong community. Then, down the line, a fungible token can coordinate these members toward a common goal. It’s about starting with a community-first approach, which I call a Web3 social product.

At ARC, we try to build a digital-first institution with a highly adapted community. This concept of digital communities only really blossomed after COVID, thanks to tools like Zoom and Google Meet that bring people together online.