In a captivating conversation, Emoote's Yuji Kumagai examines how Web3 and AI can shape the future landscape of Japan.

Globally, Web3 initiatives are gaining serious momentum. Sergey has talked to Yuji Kumagai Yuji Kumagai, a general partner at Emoote, shared insights on the state of Japan's Web3 space, particularly in entertainment, media, and lifestyle innovations. While the uptake of Web3 in Japan has been steady but not yet explosive, Yuji envisions significant shifts in the near future, especially if businesses leverage Japan's cultural strengths to enrich their approaches.

Could you give me a rundown of Emoote? What's the story behind Akatsuki, and what are your main areas of focus? Who's on your team?

Emoote is a venture capital fund in the Web3 space located in Singapore. It's the corporate venture capital wing of Akatsuki, a prominent Japanese digital entertainment company. Akatsuki specializes in developing intellectual property (IP) businesses, which include everything from video games to webtoons, and boasts strong connections with various IP holders and game publishers throughout Japan. mobile games Established in 2021, Emoote focuses on sectors like entertainment, media, and lifestyle. We have made investments in over 30 projects globally, including notable names like STEPN, BreederDAO, EthSign, and YGG Japan.

I co-founded Emoote alongside Comugi, who is the editor-in-chief at Coindesk Japan, and Mai Fujimoto, also known as 'Miss Bitcoin' for her extensive knowledge and global connections. Our focus lies on three critical areas. web3 projects Token Economy: We're all about how tokenomics can empower creators and enrich entertainment.

Emotional Value: We believe emotional connection is vital for building a sustainable ecosystem for consumer-focused projects.

• Asia-Focused: Asia is on track to become a leading market in this sector.
• What's your take on how the Japanese entertainment sector is adapting to Web3 technologies, and how do you envision its evolution?
• Big players like Sony and Sega are venturing into blockchain game development. I see numerous other companies preparing to explore similar opportunities in gaming through Web3 technology. Creators and developers working in the Web3 space often seek to establish global projects, choosing hubs like Singapore, Dubai, and the United States for their work. It's exciting to observe the surge in entrepreneurs aiming to make their mark on a global scale. web3 .

Fortunately, Japan has managed to weather the storm from the 2022 market downturn relatively well, positioning 2023 as a golden opportunity for Japanese innovators and businesses to lay the groundwork for the next generation of infrastructure and applications.

Several major game publishers like Square Enix Nonetheless, there are hurdles to overcome. One significant challenge is that Japan is trailing behind in the Web3 race due to regulatory concerns and cultural attitudes. Given our sizable domestic market, the software industry has largely remained insular. We need to adopt a more global mindset and gain international experience. Regulatory hurdles, especially regarding legal, accounting, and tax-related matters, pose additional challenges. non-fungible and fungible tokens .

Web3 entrepreneurs How does Japan compare to other regions in terms of Web3 adoption, and what distinct challenges and opportunities does it face? With Tokyo being one of the largest entertainment capitals globally, we are home to a plethora of talented creators spanning various fields including gaming, anime, cinema, and music. Despite its potential, a transformative shift in cultural practices as substantial as Web3 will take time. The evolution of entertainment culture that has been nurtured over the years will be instrumental in developing innovative Web3 applications and content that resonates both with local audiences and carries global appeal. .

For instance, global icons like Mario, Pokémon, One Piece, and Naruto have solidified their status, not merely because they are commercially successful, but due to the profound emotional connections fans establish with their characters and stories. While sustainability within the Web3 framework is often flagged as a pressing issue, the emotional bonds can ensure the long-term viability of tokenomics. crypto market Have you heard of VTuber culture, where characters entertain and engage audiences through videos? This uniquely Japanese phenomenon has gained traction in recent times. With the integration of cutting-edge technologies like DAOs and AI, the VTuber landscape could evolve into a collaborative entertainment model that brings creators and their audiences closer together.

Can you highlight some notable Japanese companies or projects making waves in the Web3 space?

How does the Japanese crypto market Square Enix's President, Yosuke Matsuda, has voiced encouraging sentiments about the future of blockchain gaming in his annual New Year’s address, which is a good sign for Web3's perception in Japan. While many projects in Japan are still in the early stages and not yet internationally recognized, I have high hopes for several initiatives I’d like to mention. Astar, which operates on the Polkadot network, is already providing solutions for multi-chain interoperability. They are forging partnerships not only with leading Japanese enterprises but also with international players; their validators include top-tier game developers from both Japan and Asia.

As I mentioned, several entertainment firms and innovators are preparing to dive into this market, and I believe Japanese projects could soon make an influential impact on the global stage.

What do you believe differentiates Japan's approach to embracing and integrating Web3 technologies? Dragon Ball There are compelling factors suggesting that Japan might soon experience widespread adoption of Web3 tech. token utility and token burn .

First off, the strength and creativity behind Japanese IP generation is a major asset. Take Azuki, for instance, which has gained popularity for its characters designed in a distinctly Japanese anime style, even though it isn't a native project. The influence of Japanese entertainment culture can be observed in creators around the globe. While there are equal chances for creators worldwide, imagine the possibilities if those steeped in Japanese culture begin seriously exploring NFTs! I’m eagerly anticipating the outcomes. live streaming Lastly, consider the expansive size of the Japanese entertainment sector. A prime example is STEPN, one of the most popular move-to-earn applications and a key part of Emoote’s portfolio. Japan ranks as one of the largest markets for STEPN, which played a significant role in its initial spread through social media platforms. Japanese users not only engaged with the game; they actively purchased tokens and invested in governance mechanisms to help propel the project. This kind of engagement will motivate not only Japanese developers to launch Web3 solutions in the domestic market but will also invite global projects to explore entry into Japan.

I firmly believe that both the rich cultural backdrop and unique market characteristics provide a wealth of opportunities for Japan. web3 space?

What role do you see the Japanese government and regulatory landscape playing in shaping the future of the Web3 market in Japan?

Everything shifted dramatically in 2018 after the market was rocked by hacking incidents, prompting the government to impose stringent regulations. smart contract platform While this has made it more challenging for Japanese companies to create their own tokens, particularly due to tax implications—where they must account for unrealized gains by year-end, including taxes on newly issued tokens—it reflects a pressing need for regulatory reforms. global web3 projects. Oasys is a blockchain for games Conversely, these regulations have also yielded positive outcomes, especially in light of the concerns following the FTX collapse. Japanese firms are mandated to segregate customer assets, and as per FTX Japan's updates, they have ensured the secure protection of their customer's assets.

At Emoote, we are committed to advocating for regulatory changes that foster a more developer-friendly landscape in Japan. We look forward to a time when global innovators aim for the Japanese market as fervently as Japanese creators seek international platforms.

Are there any emerging trends or developments in the Japanese Web3 market you believe will be noteworthy in the upcoming years? web3 technologies?

The term 'Creator Economy' is crucial here. My interest is particularly piqued by consumer applications and platforms tailored for the Asian market. For instance, live-streaming platforms have surged in popularity across Japan, where creators monetize their content through viewer tips—an aspect deeply rooted in Asian culture. We aspire to enhance these platforms through Web3 technologies.

I'm also fascinated by the realms of fanfiction and fanart, where numerous illustrators and manga artists take inspiration from beloved IPs. This proud cultural expression raises licensing challenges, yet Web3 offers a pathway for digital ownership, facilitating collaborations between original creators and fans, ensuring a fair reward system for all contributors. NFT collectible I am excited about the ventures that we, as Japanese individuals and builders passionate about our culture, will fast-track forward. NFTs of Japanese IP prove just that.

What strategies should western companies and investors adopt to capitalize on opportunities in the Japanese Web3 market?

The second is the There are significantly promising prospects for international projects and investors looking to delve into the Japanese Web3 space. To start, Japan holds a vital position as a major economy with consumers who possess high levels of digital entertainment engagement, particularly on mobile platforms, and are eager to explore new offerings. This is fantastic news for service providers looking to penetrate the market. If you aim to establish a project tailored for Japan, I highly recommend appointing a country manager first. Keep in mind that this market operates quite differently due to unique linguistic and cultural dynamics. expensive NFTs Next, regarding investment, the number of Web3 investors in Japan is currently limited due to regulatory constraints and prevailing mindsets. However, the number of builders in the Web3 arena is gradually increasing, and the Japanese have a knack for developing compelling entertainment and media projects. Overseas investors would do well to leverage their expertise and networks to help Japanese projects gain a foothold in the global market. Given Japan's unique landscape, setting up a local office or partnering with a local venture capital firm could be beneficial.

This approach would not only support local initiatives but also facilitate their global expansion from Japan. Please feel free to reach out for more insights.

In what ways is the Japanese entertainment industry integrating AI technologies into its operations and content creation processes?

Japan used to be one of the largest markets for crypto Yuji Kumagai from Emoote delves into the possibilities presented by Web3 and AI within the Japanese landscape, as highlighted by an article on Metaverse Post.

Globally, Web3 initiatives are gaining momentum. In a recent discussion, Sergey spoke with Yuji Kumagai, who is a general partner at the Singapore-based venture capital fund Emoote, to explore the current state of web3 in Japan along with advancements in the sectors of entertainment, media, and lifestyle. Although Japan hasn't fully embraced Web3 yet, Yuji is optimistic about upcoming changes, particularly if local businesses leverage Japan's distinct culture.

In a recent article, Emoote’s Yuji Kumagai shares insights on the transformative potential of Web3 and AI in Japan's market.

Emoote’s Yuji Kumagai shares his thoughts on the future possibilities of Web3 and AI in Japan.

The FTC's attempt to prevent the Microsoft-Activision merger has been rejected in their latest appeal.

Published on February 2, 2023, at 3:51 am, with the last update at the same time.

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Web3 initiatives are making waves worldwide.

Yuji discussed the Japanese web3 ecosystem and its technological advancements in entertainment and lifestyle sectors, noting that although large-scale adoption in Japan hasn't occurred yet, he’s hopeful that businesses could soon tap into the country's rich culture to drive this change.

Could you tell me about Emoote? What’s the core focus of Akatsuki, and who are your partners? market in the next few years .

Emoote is a venture capital fund focusing on Web3, located in Singapore. It operates as a corporate venture capital arm of Akatsuki, a publicly traded Japanese digital entertainment firm. Akatsuki has developed various intellectual property (IP) ventures, encompassing games and webtoons, establishing strong connections with Japanese IP owners and game developers. content and services Founded in 2021, Emoote concentrates on domains like entertainment, media, and lifestyle. Our portfolio includes investments in over 30 innovative startups globally, such as STEPN, BreederDAO, EthSign, and YGG Japan.

I co-founded Emoote alongside Comugi, the editor-in-chief of CoinDesk JAPAN, and Mai Fujimoto, often referred to as 'Miss Bitcoin,' renowned for her extensive knowledge and international network. Our efforts focus on three main areas.

We at Emoote will continue to incubate the Japanese web3 Token Economy: The economics of tokens empower creators and entertainers. contact me if you are interested.

Emotional Value: For consumer-oriented projects, the emotional value is crucial to establish a sustainable ecosystem.

Asia-Centric: Asia is poised to emerge as the most significant market in the future.

How is the Japanese entertainment sector adapting to Web3 technologies, and what does the future hold?

Companies such as Sega are embarking on blockchain gaming projects. Additionally, many developers who traditionally operated in web2 are now relocating abroad to develop global initiatives, frequently opting for destinations like Singapore, Dubai, and the United States. It's encouraging to witness a surge in entrepreneurs competing on the international stage. online game Fortunately, Japan remained relatively unscathed by the crashes in 2022, suggesting that 2023 presents a significant opportunity for both individuals and organizations in Japan to innovate with new infrastructures and applications.

Nevertheless, challenges persist. Japan tends to lag behind other nations in adopting Web3, attributed to regulatory frameworks and mindset limitations. Historically, the software sector has been primarily oriented towards the domestic market, highlighting a need for a more global perspective. Additionally, legal, accounting, and tax regulations pose further obstacles.

I can think of two possibilities.

How does Japan's web3 landscape compare to others, and what distinct hurdles and opportunities does it present? lead the world Tokyo stands out as one of the globe's major entertainment hubs, boasting a diverse array of creators in gaming, anime, film, and music. Cultural shifts in a vibrant city like Tokyo take time, meaning that while Web3 trends are significant, a gradual evolution of entertainment culture will pave the way for innovative Web3 content and applications not only appealing to Japanese consumers but aimed at a global audience as well.

Consider popular Japanese properties like Mario, Pokemon, and Naruto, which have achieved international acclaim. Our appreciation stems not from monetary motives but from a deep emotional connection to the characters and stories. Although sustainability poses a challenge in the Web3 space, emotional value can contribute to sustainable tokenomics through engaged communities.

What about the unique genre of VTubers using avatars for their videos? VTuber culture has become an integral part of Japan's recent entertainment landscape, and as we incorporate new technologies and ideas, such as DAOs and AI, this culture could evolve into a collaborative entertainment mode driven by both creators and fans.

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Yuji Kumagai What are some standout examples of Japanese firms or projects making strides in the Web3 arena?

The endorsement of blockchain gaming by Square Enix President Yosuke Matsuda, articulated in his New Year’s greetings, carries significant weight for Web3. game company .