Key Takeaways
In order to ensure the stability of the investment market and the safety of investors' assets, the Japanese government has formulated strict laws and regulations, which is a challenge for small cryptocurrency projects.
Japan has a strong gaming base, making it an ideal region for crypto gaming development.
Popular Japanese cryptocurrency games include My Crypto Heroes, Captain Tsubasa RIVALS, and Crypto Spells. In addition, Line’s NFT subsidiary also plans to release five user-centered NFT games in 2023.
Japan’s NFT industry has three characteristics: extensive intellectual property (IP), low FUD levels, and a strong and tight-knit project community.
This article introduces three major NFT projects in Japan, namely Murakami Flowers, Crypto Ninja Partners, and MetaSamurai.
STEPN is an example of a project that successfully entered the Japanese market. The project seized the opportunity, carried out localized marketing, and actively built a community, attracting a lot of attention in the Japanese market.
Introduction
Globally, Japan is a unique market with huge potential in the financial and investment sectors, with a strong retail foreign exchange industry and a thriving stock trading sector.
Due to the frequent hacking of cryptocurrencies in the early days, the Japanese government has a conservative attitude towards the cryptocurrency industry and has carefully regulated it. Even today, due to the supervision of the Financial Services Agency, the selection of cryptocurrency assets in Japan is relatively limited.
However, Japan approved Bitcoin as a legal form of payment in 2017, creating conditions for the rapid development of the cryptocurrency industry. Although the government was initially skeptical of the industry, recent events have shown that the government has become more supportive of the development of the blockchain industry in Japan as it continues to grow.
In April 2023, the Web 3.0 project team of Japan's ruling party released a white paper proposing recommendations to promote the development of Japan's crypto industry. In June 2023, Japan's "Fund Decision Bill Amendment" was voted through in the upper house, becoming the first country in the world to enact a stablecoin bill.
However, due to policy restrictions, Japan cannot directly invest in tokens and issue tokens, which limits the development of DeFi in Japan. Therefore, in Japan, NFT and blockchain games are widely regarded as the main players in its cryptocurrency market.
This report will focus on Japan’s rapidly growing NFT and crypto gaming sector. Due to the country’s highly developed gaming industry and well-known anime IPs, Japan’s NFT and crypto gaming sector is also thriving, with huge potential for future growth. By studying successful blockchain companies in Japan, we will delve into their strategies for achieving success, while exploring the challenges they face and highlighting the opportunities that exist in this rapidly developing market.
Blockchain games in Japan
Japan is one of the most dynamic gaming markets in the world. Most people are very familiar with Japan's gaming industry due to the popularity of gaming platforms such as PlayStation (PS) and Nintendo. In addition to the traditional gaming market, Japan's crypto gaming industry is also rapidly emerging.
In addition to having a globally influential gaming industry, Japan is also one of the countries with the highest per capita profit in the gaming market worldwide. The Japanese have a special liking for games and are willing to pay for them. Therefore, the Japanese gaming market is very profitable.
Japan is not only known for its prosperity in traditional games, its blockchain gaming industry is also rising rapidly.
The future potential of blockchain games in Japan
Blockchain games are games built using blockchain technology, combined with on-chain assets (cryptocurrencies, NFTs) to provide players with a safer and more transparent gaming experience.
In blockchain games, players can truly own the assets in the game. Not only that, all game behaviors, including transactions and exchanges, will be recorded on the blockchain. Combined with blockchain technology, games can establish a more transparent and dynamic game economic system, and players can obtain real economic value through the time and energy spent on playing games.
My Crypto Heroes is an RPG battle game based on the Ethereum blockchain. It was launched in November 2018 and is the first mature blockchain game in Japan. Since its release, the game has ranked first in the world in terms of transaction volume and daily active users. As of January 1, 2023, its first public sale amount has reached 16,000 ETH.
Several major players in the Japanese gaming market are actively involved in the cryptocurrency space. These include top public companies such as Line. Line's NFT subsidiary also plans to release five user-centric NFT games in 2023. MIXI has also joined the Oasys blockchain and serves as a validator. In addition, Japan has some strong crypto-native companies such as Double Jump and CryptoGames.
In summary, Japan’s blockchain gaming industry has three main characteristics:
Solid Foundation: The Japanese gaming industry has a long and rich history of traditional games, providing a solid foundation for the development of crypto games.
Unlimited Potential: Japanese gamers are known for their willingness to pay for high-quality games, making Japan’s blockchain gaming market a huge profit potential.
Focus on mobile games: In Japan, mobile games are more popular than PC or console games, leading many game companies to prioritize the development of mobile games using blockchain.
Brief Introduction of Japanese Blockchain Game Case
In this section, we will introduce three of the more popular blockchain games in Japan and explore their opportunities and challenges.
My Crypto Heroes
MCH Verse & My Crypto Heroes (@mycryptoheroes) / Twitter
"My Crypto Heroes (MCH)" is an NFT game originating from Japan and developed by double jump.tokyo. The economic basis of the game is a GUM token. Since its release in November 2018, the game has a large global user base and transaction volume, and has enabled some players to obtain real economic benefits.
The main gameplay of the game is to collect and cultivate historical heroes and use them to fight in dungeons (called nodes in the game). Some heroes and game props are presented in the form of NFTs and can be traded between players.
From an economic perspective, MCH's main economic cycles include the following aspects:
Mission: Players can use heroes to fight and win experience points, crafting materials and other expansion props as rewards.
PVP (Player Versus Player): Players can win ranking points and items by participating in battles, and these items can be traded on the trading market.
Marketplace: Players can use the in-game currency GUM to buy and sell their items and heroes.
Land Activities: Players belong to a virtual nation called "Land" and participate in collection activities. These activities can increase the value of the nation's land and distribute dividends in the form of GUM.
MCH Active User
According to Footprint Analytics data, although My Crypto Heroes has not always maintained a high number of active users, it has experienced several significant increases in user activity. While these increases may have been negligible, the game managed to attract a long-term audience over several cycles of ups and downs.
Recently, the development team has expanded their game development capabilities and launched "MCH Verse" - a Layer 2 Optimistic Rollup based on the game-specific Layer 1 blockchain "Oasys". This strategic move fully utilizes the infinite scalability of blockchain technology and improves the user experience and interoperability within Verse.
While many mobile blockchain games tend to reduce the use of on-chain resources and choose to do more off-chain development to avoid complex on-chain functions, MCH still maintains a leading position in the Japanese crypto game market. It quickly adopts and integrates various technologies to enhance the gaming experience.
Captain Tsubasa RIVALS
Captain Tsubasa -RIVALS- (@TsubasaRivalsJA) / Twitter
Captain Tsubasa – RIVALS is a blockchain game based on the popular manga Captain Tsubasa. The books and paperbacks of Captain Tsubasa have sold over 70 million copies in Japan, and the game has over 70,000 followers on Twitter. The game leverages the long-standing popularity and large fan base of the anime, combining a football theme with a dual token mechanism to create a high-quality game.
There are two tokens in Captain Tsubasa – RIVALS: TSUBSAUT and TSUGT. They are used as utility tokens and governance tokens in the game, respectively. Drawing on the model of Axie Infinity, by distinguishing between the reward system and the governance system, the game can better balance the in-game economy, increase user activity, and effectively reduce token price volatility.
Captain Tsubasa Token Price
However, since TSUBASAUT was launched, its value in USD has been steadily decreasing. This is probably because it was issued in unlimited quantities and is mainly used by players to cash out. The operating company has adopted a balancing system to try to stabilize the price of TSUBASAUT within a certain range, but so far, it has had little effect.
Similar issues have also arisen in other blockchain games such as Axie Infinity and STEPN. It is crucial for potential players to understand how Captain Tsubasa – RIVALS maintains long-term user liquidity before starting the game.
TSUGT token governance has remained stable since launch relative to other tokens. This is due to the limited supply of TSUGT tokens and their utility in the game directly tied to key game features such as upgrades, making them more robust and reliable. Currently, the team, investors, and advisors hold 37% of the tokens, which will be released within 12 months after the lockup period ends, helping to maintain a balance between supply and demand and build a stable token ecosystem.
However, despite the two-token system, the game's mechanics are very simple: each player has three different role cards, and the numbers on the cards are compared, repeated three times, before a winner is determined. Players need to be strategic enough to choose the order in which the numbers are used.
In fact, the game has been criticized for being too simple, as players simply have to compare numbers, and users cannot play without purchasing NFTs.
Despite some issues faced by the game, Captain Tsubasa – RIVALS demonstrates the potential of combining Japanese intellectual property with blockchain games, as well as the intersection between NFTs, intellectual property, and games. This opens up new possibilities for blockchain games.
Crypto Spells
Crypto Spells (Cryspe) Official Japanese (@crypto_spells) / Twitter
Crypto Spells is a popular strategic digital trading card game launched by Crypto Games in 2019. The gameplay of the game is very similar to Hearthstone and Gods Unchained. The game has a built-in wallet function (supports iOS and Android), making it easy for newcomers who don’t know much about the crypto world to get started.
Crypto Spells uses the L2 system of "TCG Verse" running on Oasys L1. Similar to "My Crypto Heroes", its purpose is to further expand the blockchain-based gaming system. Recently, they also launched a new series called "NFTWars" that allows verified NFT holders to create their own game cards. By expanding the number of NFT holders, players will have the opportunity to earn some OAS (Oasys' native token). This ecosystem has the potential to expand to the global market.
In Crypto Spells, players can use a deck of 30 cards to fight. In each deck, there can be up to two identical cards. In addition, players can add three skills to their decks to increase the diversity of strategies and improve competitiveness. Through the game, players can accumulate battle points, which can be used to forge new cards and have the opportunity to obtain rare NFT cards.
Crypto Spells Total User
Beginning in the fourth quarter of 2021, Crypto Spells experienced significant growth in its total user base.
Crypto Spells Active User
However, when we look at the active user data, we find that the game is having trouble maintaining growth momentum. While attracting new users, the growth of active users is relatively limited. This is likely to change as the game integrates players more closely with the game universe, thereby increasing user engagement and activity.
As Japan has a deep gaming culture foundation, Crypto Spells regularly hosts official and unofficial competitions, of which the unofficial competitions are led by the community. These competitions are not only held online, but also offline events, attracting more fans from outside the crypto community. The game focuses on the strategic display of player skills, making Crypto Spells an ideal ecosystem with gaming at its core. Winners will receive rare NFT rewards, which can be traded on the secondary market.
Japan’s NFT Market
Japan not only has a rich and long history of video games, but also has the largest number of IPs (intellectual property) in the world. These cultures have transcended national borders and become globally famous.
Popular Japanese anime such as Naruto, Dragon Ball, and Ghost in the Shell have millions of fans around the world, laying a solid foundation for the development of blockchain games and the NFT industry.
Because of this, Japan’s NFT community also has unique aesthetics and preferences that are different from those in other parts of the world.
NFT’s unique development path in Japan
Non-fungible tokens (NFTs) are a special type of digital asset whose value is determined by its uniqueness and irreplaceability. NFTs use blockchain technology to guarantee their ownership and authenticity.
Non-fungible tokens (NFTs) have been a hot topic in Japan’s cryptocurrency space since early 2018. In 2021, they have become even more popular in Japan as the global craze for NFTs has grown.
The development of NFT in Japan has distinct characteristics and remains independent of global trends. In the NFT market, Japan mainly relies on domestic animation and idols, using existing intellectual property content and cooperating with fan communities. This makes Japan's NFT development mainly focus on the domestic market.
However, with the rise of the "Bored Ape Yacht Club" (BAYC), NFT projects for collection have begun to emerge. Murakami's "Murakami Flowers" is the first Japanese project to establish an overseas user group. Murakami has gained international fame through cooperation with luxury brands such as Louis Vuitton and Hublot, and has become an important reason for driving Japanese NFTs to attract attention worldwide.
The Japanese have a special fondness for their own culture and art, which provides natural support for local projects. Murakami Takashi showcased Japanese culture through NFT, and this cultural sentiment became an important driving force for the Japanese to support his project.
In addition, we have also noticed that the local community in Japan is increasingly accepting of NFTs. Japan has a tax system called "Furusato Nozei" that allows taxpayers to donate part of their taxes to local governments, and in return, they receive some local specialties.
Recently, some local governments have begun to use NFT as a way to express gratitude. This practice is unique to Japan, combining rural revitalization and digital art, highlighting the unique aesthetics of Japanese digital art and the huge potential of local resources.
In general, the three major characteristics of Japan's NFT industry are:
Rich intellectual property resources: Japan has a large number of popular IP resources, including anime, comics, and video games, which can be used to create attractive NFT collections.
Low FUD levels: FUD is rare in Japan’s crypto gaming community, most likely because Japanese culture generally avoids direct criticism and expressions of dissatisfaction. This is particularly evident among NFT newbies and startup community members.
Close-knit community: The smaller size of the cryptocurrency community in Japan helps develop a more efficient and close-knit community through increased collaboration and building common goals.
Overview of popular NFT projects in Japan
Murakami Flowers
Murakami.Flowers Official (@MFTMKKUS) / Twitter
Takashi Murakami is a renowned Japanese artist known for his colorful works and unique artistic style. The Murakami.Flowers project (M.F for short) initiated by him is a comprehensive project covering art, design and digital creation. The project is centered on the number "108" (composed of 108 backgrounds and 108 small flowers), which echoes the number related to the afflictions or worldly temptations in Buddhism, meaning that the artist attempts to transcend worldly constraints through digital art.
There are a total of 11,664 NFTs in the series (108*108). In terms of NFT distribution, the whitelist pre-sale will be distributed to 3,000 RTFKT CloneX holders with Murakami Drip and 500 other event participants, Murakami himself will retain about 4,000, and the remaining 6,751 will be open to the public.
The price for whitelist participants is 0.0727 ETH, while the price for public sale participants is 0.108 ETH. Each wallet is limited to one purchase. The actual sale will take place in April 2023, and each buyer will receive a "seed" NFT, which will then evolve into a unique flower.
Murakami Flower Holders
Although the price of his NFTs has continued to drop since September 2022, Murakami remains actively involved in the project and continues to expand his M.F universe.
Murakami.Flowers Official (M.F) Price
Unlike typical NFT projects, this series of airdrops for NFT holders includes not only NFT sub-series, but also a series of physical goods such as original T-shirts, Tamagotchi-like toys "Flower Go Walk", and trading card collectibles based on M.F.
Judging from the market activity, the floor price of the M.F series is continuing to decline, and the current trading price is about US$600, second only to Crypto Ninja Partners (described below).
Murakami Flower Floor Price
The floor price of NFT is determined by actual market participants, and those who have advantage opportunities, such as those who get whitelist allocations, will have a significant impact on the actual transaction price. Although the floor price has dropped, NFT art is only one aspect of the art field, so Murakami has been working hard to take his project in a broader direction.
Crypto Ninja Partners
[Official] CNP (CNP) | CryptoNinja Partners (@cnp_ninjadao) / Twitter
Crypto Ninja Partners (CNP) is a Japanese ninja-themed NFT series that originally originated from a community called NinjaDAO. Although NinjaDAO is not a DAO organization in the strict sense, this community brings together many cryptocurrency enthusiasts from Japan. Two core figures, Ikehaya (Japanese NFT KOL and Web Marketer) and Road (another core contributor), jointly promoted the development of CNP.
The CNP series of NFTs were originally issued in May 2022, with an initial price of only 0.001 ETH, including 22,222 items. The initial sales price of NFTs is generally set at 0.05-0.08 ETH, but the original intention of CNP is to start at an affordable price so that people who don’t know much about NFTs can also participate. Holders can benefit from potential value growth instead of starting at a price as high as 0.08 ETH.
This strategy was a huge success and won the trust of holders, pushing the floor price over 2 ETH and making CNP one of the successful NFT projects in Japan.
Crypto Ninja Partners (CNP) Floor Price
CNP's strategy mainly consists of distributing a large number of sub-series and family series whitelists to holders at a price of 0.001 ETH. In the early stages of the project, this strategy effectively stimulated the activity of the project by giving CNP holders priority minting rights. However, as the market environment deteriorates, CNP seems to have difficulty attracting more new users to join the community.
Since the project was launched, the founders and community members have been promoting the project in various ways, using several main characters as community IPs to assist in the operation and marketing of the community. The community is also working hard to promote the development of CNP, enhancing the influence of the CNP brand through methods such as developing mobile games and holder-exclusive apps. In addition, CNP holders can also enjoy exclusive services provided by more than 160 partner restaurants, hotels and other places in Japan, such as getting some special service discounts.
The project’s emphasis on community sets it apart from the others mentioned in this article, and we can see that CNP leverages Japan’s strengths in IP creation.
MetaSamurai
1BLOCK STUDIO®︎ (@1block_official) / Twitter
MetaSamurai is presented by the Los Angeles and Tokyo-based creative team "1BLOCK®︎" and is a series of 3,333 unique 3D avatar NFTs. The goal of the project is to build a brand in the digital fashion space by empowering creators.
MetaSamurai is a series of 3,333 unique 3D avatar NFTs presented by the Los Angeles and Tokyo-based creative team "1BLOCK®︎". The vision of the project is to establish a digital fashion brand and empower creators.
The core concept of the project is "I GOT YOUR BACK", which symbolizes MetaSamurai's commitment to supporting its NFT holders. The phrase "I GOT YOUR BACK" originated from a story about two people standing back to back in battle, protecting each other; the spirit of a samurai who is determined to dedicate himself to protecting his lord; and the loyal dog Hachiko who waited for his deceased master for more than ten years. These are the inspirations for MetaSamurai's works.
This NFT series was initially minted in June 2022 with a public sale price of 0.05 ETH.
MetaSamurai Floor Price
In 2022, its price fluctuated around the initial price, but by early 2023, the series began to appreciate significantly.
Furthermore, another unique aspect of the project is the collaboration with numerous companies and brands within Japan. They have already achieved numerous collaborations with well-known partners such as “Ghost in the Shell”, “Ghost in the Shell STAND ALONE COMPLEX”, “BEAMS CULTUART”, “COACH”, “Lupin the Third” and “Atmos x Space Brothers”.
METASAMURAI by 1BLOCK
1Block sees MetaSamurai not just as a normal series of NFTs, but also as a digital fashion brand. This makes it different from other projects that release NFT series. The much-anticipated MetaSamurai 2 series is expected to launch personalized MetaSamurais wearable products, providing a new perspective for fashion brands and promoting the development of original projects.
Overview of Japan's Financing Industry
Japan may not have a very active entrepreneurial atmosphere, but its venture capital industry is very strong. It is important to note that there are some special restrictions on investing in Japan due to Japan's Limited Partnership Act (LP Act). Currently, the LP Act does not allow investors to invest in tokens, which limits the full participation of Japanese venture capital firms in the cryptocurrency and blockchain fields.
Investment Round & Amount
As of January 1, 2023, the most active venture investors in the crypto space in Japan (by investment rounds) are Global Brain, East Ventures, and SoftBank. In terms of financing amount, the top three venture investors are Global Brain, SoftBank, and Z Venture Capital.
Japan’s venture capital industry is less active than other countries and is characterized by a cautious and sophisticated approach to investing. According to Siddarth Pai, co-founder and CFO of venture capital firm 3one4 Capital, “Japanese investors view investments as equal partnerships based on mutual strengths, so VCs are generally cautious, careful, and thoughtful.”
Japan’s venture capital industry is less active than other countries and is characterized by a cautious and sophisticated approach to investing. According to Siddarth Pai, co-founder and CFO of venture capital firm 3one4 Capital, “Japanese investors view investments as equal partnerships based on mutual strengths, so VCs generally adopt a cautious and considered strategy.”
Traditional venture capital firms, such as SoftBank Vision Fund, East Ventures, and Global Brain, play an important role in supporting Japanese companies. Japan's stable economy and capital market have fostered a large number of investment institutions, some of which flow into venture capital funds and start-ups. The stability of the Japanese economy also makes investment risks lower than those in economically unstable countries.
Despite challenges such as an aging population and economic stagnation, Japan's large economic base and domestic market remain attractive to global investors and technology companies. In addition, although Japanese investors are relatively conservative, they are increasingly willing to pay attention to startups and venture capital funds, driving the growth of Japan's entrepreneurial environment.
Overall, while Japan’s venture capital industry may not be as fast-paced as other countries, its measured and well-researched approach to investing, as well as support from traditional VCs and an increasingly open attitude toward risky investing, make Japan an ideal choice for startups and investors.
STEPN Case Study: Development of overseas projects in the Japanese market
STEPN is the first game to implement the "Move to Earn" economic model in the game and has achieved significant success in the Japanese cryptocurrency market.
STEPN Daily Active Users
The core game mechanic of STEPN is that in this game, players can buy sneaker NFTs and earn in-game tokens GST by walking, jogging or running outdoors. These tokens can be used to upgrade existing sneakers or create new sneakers. STEPN has achieved great success in Japan thanks to several key factors.
First of all, the timing of entry plays a very critical role. When STEPN was launched around the end of 2021, the macro market conditions were relatively good. After the bull run in November 2021, many people had ample funds on hand. The increase in liquidity triggered a greater willingness of a large number of users to purchase in-game items. Although the project party itself cannot control the market trend, it is still an important determinant of the project's success.
In addition, it is important to note that Japanese players generally have higher spending power than players in other countries. They are often willing to invest a lot of money in NFT items in the game, and some even invest five or six figures in order to maximize the benefits of the game.
Compared to other countries, this level of spending is rarely seen in the gaming space. For example, Axie Infinity is a very popular game in the Philippines, and its main driving force is the scholarship mechanism. Players can rent three Axies for a low price to join a guild, which allows players to enter the game with almost no upfront cost. Therefore, individuals can participate with less initial capital.
STEPN identified Japan as its target market in the early days of the game. Therefore, before players in other parts of the world joined the game economy, Japanese players had already used their strong purchasing power to shape the in-game market circulation mechanism, making its in-game market healthier and more liquid than the global average. Japanese people are generally less involved in global communities, and STEPN successfully adapted to the local Japanese community and triggered a positive cycle, so STEPN is discussed more in the Japanese market than in other major markets in the world.
Source: Google Trends
The use of GPS in the game can also be seen as a positive factor. STEPN needs to track GPS accurately to prevent cheating and maintain the integrity of the in-game economy while also injecting bets in real time. Many Japanese use iPhones with accurate GPS systems, which makes it easy for players to start playing and make money.
The Gacha system is a unique feature widely used in Japanese mobile games, where players can exchange game tokens for random in-game items. The Gacha system has been an important factor driving the growth of games in Web2 mobile games. STEPN successfully integrated this concept into the game, enhancing the engagement and interest of gamers.
At the height of the game’s popularity, STEPN players could earn around $3,000 a day just by walking. The game’s user-friendliness and generous rewards sparked a viral frenzy that even broke the circle.
Other projects can learn strategies from successful cases like STEPN. However, it is important to note that macro market conditions and other external factors also have a great impact on the success of projects operating in the Japanese market.
What are the characteristics of successful blockchain projects in Japan?
Japan's high-quality blockchain projects have adopted a series of operational strategies, including building a strong community, localizing projects, and winning the trust of users through long-term operations.
Strong community
One of the most important characteristics of a successful blockchain project is having a community of project supporters and loyal users. This community can help the project increase visibility, increase participation, and ensure the long-term operation of the project. There are many ways to achieve a prosperous community, such as holding community events, incentivizing users, and increasing the transparency of the project.
Project Localization
The localization of projects is very important for various blockchain projects in the Japanese market. Since Japan has a strong cultural foundation and Japanese language is dominant in daily life, overseas projects need to adapt their products and services to local regulations, translate information into Japanese, and cooperate with local KOLs and media to hold local events. By reaching out to localized audiences, projects can gain more visibility and users.
Long-term operation
A successful blockchain currency project must have the ability to cope with risks and adapt to the market. To develop a viable product and concept, it is necessary to maintain stable operation of the project in the market fluctuations. Japanese people are relatively rigorous and are usually hesitant about new technologies, so the project must gradually build a reputation in the Japanese market and operate for a long time in order to succeed in the market.
In addition to these characteristics, establishing partnerships with local KOLs, VCs, projects, and media in Japan can also help projects expand their influence, build credibility, and drive win-win growth. This is especially important in Japan, where industry giants, especially companies in traditional fields, still dominate the market. Therefore, startups should make full use of their own innovative advantages to establish partnerships with these existing giants, thereby leveraging their strengths to rise.
Opportunities and Challenges of Japan's Cryptocurrency Industry
Japan has a strong and well-established traditional financial system, which provides a solid foundation for the development of its blockchain and Web3 industries.
When it comes to Japan's cryptocurrency market, compliance has always been an important topic. In order to ensure the stability of the investment market and the safety of investors' assets, Japan has strict laws and regulations in the blockchain field. However, while these regulations protect the industry, they also pose challenges to some startup cryptocurrency projects. The entry and development of these projects are hindered by compliance costs and high tax burdens. In addition, the lengthy approval process for token listings has also led people to believe that the market lacks vitality and leads to a loss of confidence in this field.
Japan has long been known for its stability and prudence in financial affairs. This attitude may limit innovation and market flexibility, but it also protects traders from significant risks. Innovation is key to the success of cryptocurrencies, so a lack of innovation may be a major reason why Japan's cryptocurrency industry lags behind other countries.
The good news is that in April 2023, the Web 3.0 project team of Japan's ruling party released a white paper proposing suggestions for promoting the development of Japan's crypto industry. In June 2023, Japan's "Fund Decision Bill Amendment" was voted through in the upper house, making Japan the first country in the world to enact a stablecoin bill.
Japanese institutional investors are showing increasing interest in cryptocurrencies and have a clearer understanding of the potential of this industry. The growing market interest could greatly promote the development of the entire cryptocurrency industry, bringing more liquidity, stability and credibility to the market, thereby attracting more interest from retail and institutional investors.
Japan's gaming market and its strong IP resources have proven their great potential. Japan's unique cultural characteristics combined with a strong financial system will make it a global leader in the Web3 industry with great potential. By giving full play to its advantages and promoting innovation and growth, Japan has the opportunity to lead the future of the global Web3 industry.
