Elroy Cheo, co-founder and architect of the influential Web3 ARC collective, is on a mission to redefine the dynamics of digital communities.
Cheo and fellow entrepreneur Kiat Lim, son of billionaire businessman Peter Lim, have turned ARC into a collaboration hub for the global Asian diaspora, allowing members to use a Stellar NFT and a Soulbound Token called Fyrian to gain access to the app. ARC. as well as events and exclusive products. Cheo’s vision is to build a meritocratic network based on 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 in commodities and real estate development. Before cryptocurrencies, my last big project was overseeing the development of a megacity in China. When I first arrived, it was barren land, just fields and farmers. We bought the land, built infrastructure and now it is a bustling city with a high GDP. That experience stuck with me: seeing how people can come together to create something meaningful out of nothing.
In 2016, I got into the world of cryptocurrencies thanks to my uncle, a 73-year-old software developer. We are working on a blockchain-based music copyright project to address siled databases. Ownership disputes are very common in the music industry and blockchain felt like the perfect solution to consolidate ownership records. Even today, that project lives on and I am proud that it has never depended on a token to survive.
That foundation as a builder shaped the way I view cryptocurrencies: 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 communities becoming nation-states (something we are not doing), we are focused on building a digital institution driven by alignment and collective action.
The word “community” is used a lot in Web3 and often loses its meaning. How does ARC create genuine connections and stay grounded in principles?
Community is not just about numbers or minimum prices; It’s about relationships. Without links between members, you’re building an audience, not a community. We realized that members value four things. First, access to professional networks, which means select connections with builders and investors. Secondly, opportunities to make money, such as token allocations for investments. Third, lifestyle experiences, such as meeting someone like soccer star Cristiano Ronaldo or participating in exclusive partnerships with brands. Finally, growth, whether through finding a job or receiving personal mentoring.
We also promote the spirit of “giving value to receive value.” This idea is drawn from the concept of guanxi in Chinese culture and emphasizes mutual support. Members are not here just to “ask for alpha”. They support each other.
What differentiates Asian Web3 communities from their Western counterparts?
One big difference is how vocal Western communities are. They dominate crypto Twitter, while Asians tend to be more reserved. Culturally, platforms like Twitter are not used as much here; Chinese users, for example, are more active in private WeChat or Telegram groups.
Despite that, Asian liquidity is enormous. A small Chinese community can generate $1 billion worth of TVL from the DeFi protocol 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 to capture the mindset, not just the liquidity.
How are NFTs evolving, especially with respect to digital identity and utility?
The change to the pseudonym excites me. People are moving from polished profiles on Facebook or LinkedIn to avatars. It’s empowering: kids may hide behind a PFP, but their skills and knowledge shine through. At ARC, we are exploring NFTs as status symbols. Imagine walking into a hotel or event and your NFT gives you instant recognition. Beyond collectibles, NFTs can represent experience or achievements, like badges on Stack Overflow. It’s about creating digital identities with real-world impact.
With ARC membership limited to 888, how can the organization’s exclusivity and status-based model continue to scale?
Exclusivity works when it is 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 frameworks. Look at Reddit: A community manager monitored millions of users by leveraging moderation guidelines and tools.
The key is to maintain the prestige of the brand. For example, we partnered with luxury boutique chain Edition Hotel ahead of the opening of their Singapore location. When I asked their manager why they gave us special treatment, such as exclusive hospitality rates for our members, he said, “You are ARC.” That’s the power of brand equity. It’s about scarcity, reputation, and delivering consistent value. Additionally, ARC uses contributor systems to encourage active participation. For example, top contributors gain access to unique offers, events, and experiences, ensuring value flows to those who contribute to the community.
What misconceptions do you see about NFTs, particularly in Asia?
A common mistake is to view NFTs simply as sources of income. Many Asian IPs and brands still approach NFTs as transactions rather than community-building tools. I believe NFTs can go 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 and Singaporeans. The challenge is to internationalize your projects due to language barriers. But as infrastructure improves, I think Asia will establish itself as a leader in this space. AI is another exciting frontier. Overall, I am delighted to see Southeast Asia leading innovation in DeFi and NFT.
Following your launch during a bear market in January 2022, what advice would you give to creators in the Web3 space?
Build with passion. Narratives in crypto change rapidly and without passion, it is easy to give up. Many founders burn out because they lose sight of their purpose. My advice: stay hungry, curious, and treat your projects as social experiments. Quick execution with clear objectives is key.
Lastly, what are you most excited to share on the Hong Kong stage?
I’d love to talk about what I know best: using NFTs to build communities. NFTs are a great way to build a strong brand, culture, and community. Then, in the future, a fungible token can coordinate those members toward a shared goal. It’s about starting with a community-first approach, which I call 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 only really flourished post-COVID, thanks to tools like Zoom and Google Meet that bring people together online.
