Irene Zhao remains positive on Web3

Much has changed in the Web3 world over the past year. After the crypto market crash, NFT projects have struggled to survive and keep building.

Projects that stored their money in the form of cryptocurrencies – such as Ethereum and Solana – saw their reserves depleted by as much as 70 percent in a matter of months. This made it almost impossible for them to follow their road maps.

Meanwhile, others faced problems such as a growing lack of trust and interest among community members. With the collapse of major crypto players such as FTX, investor sentiment around Web3 also became more cautious.

Despite all this, there are some who remain committed to the Web3 vision. Among them is Singaporean influencer Irene Zhao, who raised over $5 million with her IreneDAO NFT collection last January.

Building on this success, Zhao started his own Web3 social media platform called So-Col. The idea was to revolutionize the way creators and fans interacted with each other.

On traditional platforms like Instagram and TikTok, creators rely on sponsors and advertising to make money because they are forced to monetize the community rather than the content. In contrast, So-Col uses Web3 mechanics such as NFTs that allow fans to directly support their favorite creators.

Despite the crypto winter, Zhao has persistently worked on this platform and has faith in the long-term potential of Web3. As of now, IreneDAO has established itself as a thriving community on So-Col, with a membership of over 8,000 members.

Building through the crypto winter

There are a number of obstacles to surviving the crypto winter. “Rug-pull projects and all these black sheep have polluted the Web3 industry and slowed down the progress of the rest of the ecosystem,” Zhao explains, adding that the prevalence of fraud in crypto has a major impact on the entire industry.

“Funding has declined, consumer sentiment has turned south, and these are more challenging to undo than overcoming the education barrier.”

Despite this, So-Col still managed to raise $1.5 million this year, bringing its total funding since 2022 to $6.25 million.

The platform has brought a number of influencers with it and has a user base of 30,000 today. So-Col has also established ties with entertainment agencies, but is holding off on launching its NFT collectibles until market sentiment improves.

As it stands, Zhao is focused on keeping operations and costs lean in an effort to weather the bear market.

“Right now we are focusing on the Web3 community as they are still positive about NFTs and the barrier for them to try new platforms is very low,” says Zhao. But in the long run, So-Col intends to include Web2 creators as well.

“We believe that in the next five years, we have what it takes to be the social app for community management, even with Web2 creators.”

The future of NFTs

Currently, sales of IreneDAO NFTs have slowed and their prices – much like most other NFT projects – are well away from all-time highs. Nevertheless, the community continues to support and cooperate with Zhao.

Zhao believes this is a result of a deeper relationship between creator and community, which NFTs help cultivate.

“Fans are no longer just ‘users’ of a platform,” she explains. As owners of her NFTs, they will benefit from increasing demand for the collection.

“By sharing ownership of the community, the fans and I have one goal, which is to grow the community together. This gives them ‘skin in the game.’

Given their use as collectibles and digital goods, NFTs offer value beyond a financial investment. As a result, they have a greater chance of appealing to a mainstream audience than other cryptoassets.

“Even in this climate, NFT communities are still active,” says Zhao, suggesting that members have remained interested despite NFTs losing monetary value.

Crypto and AI

AI has taken over as the tech buzzword of the year, raising questions about the return of retail interest in crypto. Crypto projects have often been driven by community hype, and without that same level of attention, the market recovery could take a hit.

Looking at the flip side, Zhao sees AI as a field that complements crypto, rather than overshadowing it. “We’ve seen a lot of Web3 projects that also leverage AI, and it’s great that the market is excited about it. For SO-COL, we’re exploring generative art for interactions between new creators and fans.”

“I have limited time a day to chat with my fans as I’m focused on building my company, but what if IreneDAO holders could interact with an Irene avatar that sounds like me and speaks with my experience? I think Web3 and AI together will create many opportunities for blue oceans.”

Featured Image Credit: Irene Zhao

Also read: How are Singapore’s top NFT projects holding up amid crypto winter?