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, made ARC a collaboration hub for the global Asian diaspora, allowing members to use a Stellar NFT and a Soulbound Token called Fyrian to access the ARC app, plus exclusive events and merchandise. Cheo’s vision is to build a meritocratic network anchored 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 in a unique position 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 background is a little unconventional: I started in raw materials and real estate development. Before crypto, my last major project was overseeing the development of a megacity in China. When I 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. This experience stood out to me: seeing how to bring people together to create something meaningful from nothing.
In 2016, I got into cryptography thanks to my uncle, a 73-year-old software developer. We worked on a blockchain-based music copyright project to combat siled databases. Disputes over ownership are very common in the music industry and blockchain appears to be the ideal solution for consolidating ownership records. Even today, this project is still alive and I am proud that it has never depended on a token to survive.
This foundation as a builder has shaped the way I view crypto: it’s not just about investing or speculating; it’s about creating value. This led to ARC, a Web3 collective inspired by Balaji Srinivasan’s network state theory. While Srinivasan talks about transforming these communities into nation states (which we are not doing), we are focused on building a digital-first institution driven by alignment and collective action .
The word “community” is often used in Web3, often losing its meaning. How does ARC create real connections and stay grounded in its principles?
Community is not just about numbers or price floors; it’s about relationships. Without connections between members, you are building an audience, not a community. We realized that members value four things. First, access to professional networks, which means organized connections with builders and investors. Second, money-making opportunities, such as token allocations to investments. Third, lifestyle experiences, like meeting someone like soccer star Cristiano Ronaldo or engaging in exclusive brand partnerships. Finally, growth, whether through finding a job or receiving personal mentorship.
We also promote a “give value to receive value” philosophy. This idea is taken from the concept of guanxi in Chinese culture and emphasizes mutual support. Members are not there just to “ask for alpha”. They support each other.
What sets Asian Web3 communities apart from their Western counterparts?
A big difference is how Western communities make themselves heard. They dominate crypto Twitter, while Asians tend to be more reserved. Culturally, platforms like Twitter are not as widely used here: Chinese users, for example, are more active in private WeChat or Telegram groups.
Despite this, Asian liquidity is massive. A small Chinese community can generate $1 billion in TVL on the DeFi protocol in a day, which is rare in the West. At the ARC, we recognize this strength, but also encourage members to become more publicly engaged. Asia is a Web3 powerhouse, and it’s time to capture the mind, not just the cash.
How are NFTs evolving, particularly in terms of digital identity and utility?
The transition to pseudonymity fascinates me. People move from polished profiles on Facebook or LinkedIn to avatars. It’s exciting: children can hide behind a PFP, while letting 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 with real impact.
With ARC membership limited to 888, how can the organization’s model of exclusivity and status continue to evolve?
Exclusivity works when linked to brand value and good community management. We have kept the ARC small – 888 members – because it allows us to focus on quality rather than quantity. But scaling is possible with the right frameworks. Look at Reddit: A community manager oversaw 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 its Singapore location. When I asked their manager why they were giving us special treatment, like exclusive hospitality rates for our members, he replied, “You are the ARC. This is the power of brand equity. It’s about scarcity, reputation, and providing consistent value. Additionally, ARC uses contributor systems to encourage active participation. For example, top contributors have access to unique offers, events, and experiences, ensuring that 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 solely as sources of income. Many Asian IPs and brands still view 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 shop using NFTs to turn customers into members. Instead of a traditional marketing funnel, the 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 believe Asia will become a leader in space. AI is another exciting frontier. Overall, I’m excited to see Southeast Asia leading innovation in the DeFi and NFT space.
Having launched during a bear market in January 2022, what advice would you give to builders in the Web3 space?
Build with passion. The narratives around 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: stay hungry, stay curious, and treat your projects as social experiments. Rapid execution with clear objectives is essential.
Finally, what are you most looking forward to sharing on stage in Hong Kong?
I’d like 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, ultimately, a fungible token can coordinate these members toward a common goal. It’s about starting with a community-driven approach, which I call a Web3 social product.
At ARC, we are trying to build a digitally-first institution with a highly aligned community. This concept of digital communities only really flourished post-COVID, with tools like Zoom and Google Meet bringing people together online.
