The Web3 ecosystem continues to expand globally, with Japan emerging as a pivotal market for innovation, regulation, and user adoption. On August 27, 2024, the “Opportunities and Challenges in Japan’s Web3 Market” meetup successfully took place in Minato Ward, Tokyo—hosted by 1783DAO and BroadChain Finance, and supported by CEEX. As a highlighted side event for WebX (Coinpost) and Luma, the gathering attracted over 400 pre-registrations and brought together leading voices from the global Web3 and AI communities.
Backed by strategic partners including Yuku, BytomDAO, AI on Web3, CMC, Hong Kong Blockchain Application Investment Institute, TwitterFi, JarvisBot, Haya, Taskon, Japan Hash, INOVAI, ArcX, GhostDrive, and AtDawn, the event served as a critical platform for cross-border dialogue on Japan’s evolving digital economy.
1783DAO: Building a Global Web3 Community Rooted in Asia
Blade Hu, co-founder of 1783DAO and Executive Dean of the Hong Kong Blockchain Application Investment Institute, opened the event with an inspiring overview of the DAO’s mission and growth. The name 1783 is a clever phonetic play on “let’s climb Web3” in Chinese, symbolizing collective exploration in the decentralized space. It also references 1783—a symbolic year during Europe’s Age of Exploration—framing Web3 as today’s digital frontier.
As one of the most influential Chinese-speaking Web3 communities, 1783DAO unites over 50,000 members across key innovation hubs like Hong Kong, Singapore, Dubai, Tokyo, New York, and London. With more than 1,000 active contributors, the DAO has hosted 50+ offline events in the past two years, reaching over a million people worldwide.
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Beyond community building, 1783DAO actively engages in project research, investment, and incubation. Its core members have backed and nurtured over 50 Web3 projects, reinforcing its role as a bridge between Asian innovation and global markets. Notably, in April 2024, 1783DAO co-organized a DeAI Hackathon with Edge Matrix Chain (EMC) at iCube in Hong Kong’s Central Exchange Square—offering a prize pool exceeding $1 million**. The event led to the successful launch of several high-impact AI projects. EMC later secured **$20 million in funding from Amber Group and Polygon Ventures by late August 2024—highlighting the DAO’s growing influence in tech acceleration.
With a strategic base in Hong Kong and a vision to “stand in Asia, reach the world,” 1783DAO continues to expand its ecosystem through partnerships with flagship events like Hong Kong Web3 Festival, Token2049, and SuperAI Summit.
Yuku: Merging NFTs, Metaverse, and AI Agents for Creator Empowerment
Anna, CMO of Yuku, presented the platform’s vision: “Your Gateway to NFTs, Metaverse, and AI Agent.” Yuku integrates NFTs, 3D avatars, AI agents, deflationary tokenomics, and multi-chain interoperability into a unified experience—centered around empowering creators and enhancing user immersion.
The platform features three core components:
- NFT marketplace
- Interactive 3D metaverse spaces
- AI agent integration
One standout feature is Yuku’s no-wallet entry system. Users can explore metaverse environments as guests without registration—significantly lowering barriers to entry. This approach was demonstrated through a virtual recreation of the 1783DAO Tokyo meetup, where attendees could collect NFTs, receive ICP red packets, and interact in real time.
Yuku’s metaverse spaces are co-designed by renowned architects and artists. A collaboration with a Swiss artist showcased digital artworks priced between $120,000 and $150,000, while a French partnership introduced “Paris House”—a ballet-inspired virtual gallery. These high-value integrations position Yuku as a cultural hub within Web3.
Beyond exhibitions, Yuku functions as a mini-game launchpad, supporting developers with multi-chain tools and AI-driven customization. Its team includes full-stack scientists and ICP-focused engineers—making it the largest developer group within the ICP ecosystem.
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DFINITY Foundation: Rethinking Web3’s Future with Internet Computer
Herbert, General Manager of DFINITY Foundation Asia, delivered a visionary talk titled “Finding Web3’s ‘Black Myth: Wukong’”—drawing parallels between cultural breakthroughs and technological innovation. He outlined ten key dimensions for building transformative Web3 applications:
- Long-Term Commitment: DFINITY, founded in 2016, spent nearly five years developing Internet Computer (ICP) before its 2021 mainnet launch—proving that lasting impact requires patience.
- Vision-Driven Innovation: ICP aims to host 100% of internet services on-chain—creating a decentralized alternative to AWS or Alibaba Cloud.
- New Development Paradigms: Unlike Ethereum’s EVM model, ICP uses Canister smart contracts that unify frontend, backend, and data storage.
- Performance at Scale: High-speed processing enables real-time dApps without gas fees.
- Frontend-on-Chain: Developers must master on-chain UI deployment—a foundational skill for future Web3 apps.
- Cross-Chain Interoperability: True decentralization requires seamless communication across chains.
- HTTPS Outcalls: ICP allows smart contracts to fetch external data securely—solving blockchain’s oracle problem.
- Service Nervous System (SNS): A governance framework that decentralizes app ownership.
- DeAI & Utopia: The convergence of decentralized AI and fully on-chain ecosystems will redefine digital life.
- Immersive Culture: Technology must be paired with rich cultural narratives to drive mass adoption.
AI on Web3: Key Insights from Asia’s Web3 Gaming Landscape
Allen Chow, CEO of AI on Web3, shared findings from the 2024 Asia Web3 Gaming User Report, revealing critical behavioral trends:
- Demographics: 70% of users are aged 21–40; 74% are full-time professionals.
- Adoption: Over 85% entered Web3 gaming after 2020.
- Onboarding: 80% found initial gameplay easy; 37% found it simple.
- Key Challenges: Understanding blockchain mechanics, earning models, and NFT value remains difficult for some.
- Top Selection Factors: Play-to-earn mechanics, gameplay quality, and digital asset appeal.
- Popular Genres: Pet simulation, farming, and RPGs dominate.
- Social Engagement: 87% joined game guilds (average: 3.2 per user).
Wallet & Blockchain Usage
Top wallets: Binance Wallet, MetaMask, Coinbase
Most used Layer 1s: Ethereum (ETH), BNB Chain, Solana
Top Layer 2s: Polygon, Base, Optimism
Regional Insights
- Japan & Hong Kong: Highest average spending (> $2,000)—10x Web2 levels
- Philippines: Highest ROI (87%)
- Japan: Only market with negative ROI (-6%)
NFT behaviors show strong trading activity—especially in the Philippines—and users prioritize sustainability, liquidity, utility, and collectibility when evaluating assets.
Roundtable: Navigating Japan’s Unique Web3 Landscape
Moderated by April Zhang of AtDawn Game, the panel featured Andy Duan (Japan Hash), Roy Zhang (INOVAI), Charles (BytomDAO JP), and Owen (ArcX). Key takeaways:
✅ Regulatory Advantage
Japan offers clearer regulations than the U.S., reducing legal risks related to securities compliance (e.g., SEC scrutiny).
✅ Long-Term Mindset Required
The market favors sustainable projects. Success depends on deep relationship-building within tight-knit business circles.
✅ Strong Spending Power
Japanese users exhibit high “pay-to-win” tendencies and brand loyalty—even keeping outdated apps active.
❌ High Bar for Product Quality
Users reject immature products. AI hallucinations or buggy interfaces are poorly tolerated.
❌ Localization Is Non-Negotiable
Machine translation isn’t enough. Native teams or professional localization services are essential.
❌ IP Restrictions
Strict copyright laws limit the use of popular IPs in NFTs or games.
❌ Language & Cultural Barriers
Even long-term residents may lack fluency in Japanese or cultural fluency—hindering market entry.
✅ Mature Investor Base
Middle-aged and older investors dominate—many with post-bubble economy experience and high risk tolerance.
Community trust is vital. Leveraging existing user bases significantly improves conversion rates.
Frequently Asked Questions
Q: Why is Japan considered a strategic market for Web3?
A: Japan combines strong regulatory clarity, high user spending power, and a mature investor base—making it ideal for compliant, high-quality Web3 products.
Q: What are the biggest challenges for foreign teams entering Japan?
A: Language barriers, cultural nuances, strict IP laws, and high expectations for product maturity pose significant hurdles.
Q: How important is community in Japan’s Web3 ecosystem?
A: Extremely. Trusted communities drive adoption. Projects relying on existing networks see faster growth and higher retention.
Q: Which blockchain networks are most popular in Japan?
A: Ethereum leads in Layer 1 usage. Polygon dominates Layer 2 adoption due to low fees and fast transactions.
Q: Are Japanese users profitable for Web3 games?
A: While spending is high (> $2,000 average), ROI was negative (-6%) in early 2024—suggesting monetization models need refinement.
Q: What role does AI play in Japan’s Web3 development?
A: AI enhances content creation and personalization but must avoid “hallucinations”—Japanese users demand accuracy and reliability.
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With its unique blend of regulatory stability, cultural richness, and tech-savvy users, Japan stands at the forefront of Web3’s next growth phase. As demonstrated by 1783DAO’s Tokyo meetup, cross-border collaboration—fueled by innovation in AI, NFTs, and decentralized infrastructure—is paving the way for a more inclusive and immersive digital future.
Core Keywords: Web3 Japan, blockchain gaming, NFT platform, AI on Web3, metaverse development, decentralized applications (dApps), Internet Computer (ICP), digital asset investment