Elroy Cheo, co-founder and architect of the influential Web3 collective ARCis on a mission to redefine the dynamics of digital communities.
Cheo and fellow entrepreneur Kiat Lim, the son of billionaire businessman Peter Lim, have turned ARC into a hub for collaboration for the global Asian diaspora, allowing members to use a Stellar NFT and a Soulbound Token called Fyrian to get access to the 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.
This series is brought to you by Consensus Hong Kong. Come and experience the most influential event in Web3 and Digital Assets, Feb.18-20. Register now and save 15% with code CoinDesk15.
Here, Cheo discusses his vision for ARC, how his background in property 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 developing ARC?
My journey is a bit unconventional — I started in commodities 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 the infrastructure and now it is a bustling city with a high GDP. That experience stayed 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 address siled databases. Ownership disputes are very common in the music industry and blockchain seems like the perfect solution to unify ownership records. Even today, that project is still alive, and I’m proud that it didn’t rely on a token to survive.
That foundation as a developer has shaped how I view crypto — it’s not just about investing or speculating; it is about creating value. That led to ARC, a Web3 collective inspired by Balaji Srinivasan’s network state theory. As Srinivasan talks about these communities becoming nation-states (something we don’t do), we are committed to building a digital-first institution driven by alignment and collective action.
The word “community” is thrown around a lot on Web3, often losing its meaning. How does ARC make real connections and stay grounded in principles?
Community is not just about floor numbers or prices; it’s about relationships. Without bonds between members, you form an audience, not a community. We realize that members value four things. First, access to professional networks, which means curated connections with developers and investors. Second, opportunities to earn money, such as token allocations in investments. Third, lifestyle experiences, such as meeting someone like soccer star Cristiano Ronaldo, or working with an exclusive brand. Finally, growth, whether it’s through finding a job or receiving personal mentorship.
We also promote the ethos of “give value to receive value.” This idea is derived from the concept in Chinese culture of guanxi and mutual support is emphasized. Members aren’t just here to “ask for alpha.” They support each other.
What differentiates Asian Web3 communities from their Western counterparts?
A big difference is how vocal Western communities are. They dominate crypto Twitter, while Asians tend to be more reserved. Culturally, platforms like Twitter are less used here — Chinese users, for example, are more active in private WeChat or Telegram groups.
Despite this, Asia’s liquidity is large. A small Chinese community can drive $1 billion in the DeFi protocol TVL in one 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 get the mindshare, not just the liquidity.
How are NFTs evolving, especially regarding digital identity and utility?
The move towards pseudonymity excites me. People are moving from polished Facebook or LinkedIn profiles to avatars. It’s empowering — kids can hide behind a PFP, but 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. Beyond collectibles, NFTs can represent expertise or achievements, like badges on Stack Overflow. It’s about creating digital identities that have real-world impact.
With ARC membership limited to 888, how can the exclusivity and status-based model of the organization continue to scale?
Exclusivity works when it is linked to brand value and proper community management. We keep the ARC small — 888 members — because it allows us to focus on quality over quantity. But scaling is possible with the right frameworks. Look at Reddit: a community manager manages millions of users by using guidelines and moderation tools.
The key is maintaining brand prestige. 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 gave us special treatment like exclusive hospitality rates to our members, he said, “You’re ARC.” That’s the power of brand equity. It’s about scarcity, reputation and delivering consistent value. Also, ARC uses contributor systems to incentivize active participation. For example, top contributors get access to deals, events and unique experiences, ensuring value flows to those who add to the community.
What misconceptions do you see about NFTs, particularly in Asia?
A common mistake is to view NFTs as income streams. Many Asian IPs and brands still approach NFTs as transactional rather than community-building tools. I believe NFTs can move beyond speculation to fuel community-driven growth. For example, imagine a boba shop that uses NFTs to transfer customers to 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 today?
Talent. Asia is full of talented developers — Vietnamese, Chinese, Singaporean. The challenge is internationalizing their projects due to language barriers. But as infrastructure improves, I believe Asia will assert itself as a leader in the space. AI is another exciting frontier. Overall, I’m glad to see Southeast Asia leading the innovation in DeFi and NFTs.
Having launched into a bear market in January 2022, what advice do you have for builders in the Web3 space?
Build with passion. Crypto narratives change quickly, and without passion, it’s easy to give up. Many founders burn out because they lose sight of their purpose. My advice: stay hungry, stay curious and treat your projects as social experiments. Quick implementation with clear goals is key.
Finally, what are you most excited to share on stage in HK?
I want to talk about what I know 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 those members toward a shared goal. It’s about starting with a community-first approach, which I call a Web3 social product.
At ARC, we are trying to build a digital-first institution with a highly aligned community. This concept of digital communities has really flourished after COVID, thanks to tools like Zoom and Google Meet that bring people together online.
