How does Vietnam's Culture Fuel Crypto?
How Vietnam's Risk-Taking Culture Boosts Crypto Growth
TL,DR
Vietnam’s cultural landscape is deeply influenced by a tradition of risk-taking, which plays a crucial role in the financial decisions of its citizens.
The high-risk-taking nature of Vietnamese culture fosters a deep engagement with activities that promise high returns, such as trading in Futures and participating in high-yield DeFi protocols.
Vietnamese crypto enthusiasts often engage in innovative, if borderline opportunistic, practices such as airdrop farming—participating in multiple DeFi platforms to receive free tokens—and finding opportunities for financial gain in new crypto projects.
1. Introduction
Vietnam’s distinctive gambling culture and high-risk tolerance significantly influence the development of its Web3 and cryptocurrency industries. This cultural predisposition plays a crucial role, not only in the mass adoption of digital currencies and technologies but also in positioning Vietnam as an attractive market for global players in the Web3 ecosystem.
2. Cultural Foundation for High-Risk Financial Activities
Vietnam’s cultural landscape is deeply influenced by a tradition of risk-taking, which plays a significant role in the financial decisions of its citizens. This inclination goes beyond the modern dynamics of its economy into historical and sociocultural practices that value boldness and fortune-seeking. This translates into familiarity and comfort with the cryptocurrency markets where the volatility presents similar high-risk, high-reward scenarios.
The Vietnamese are not merely participants but are also active players in the crypto sector, setting up local enterprises and engaging in crypto mining. For instance, during the recent surge in Ton coin's popularity, there was a noticeable uptick in job postings for Ton developers in local job-seeking groups. This shows the quick adaptiveness and eagerness of the Vietnamese to capitalize on new trends.
The cultural inclination towards speculation is a significant factor driving the increasing participation of Vietnamese individuals in high-risk crypto trading. While this involves substantial risks, it also presents opportunities for considerable financial gains. As the global landscape of cryptocurrencies evolves, Vietnam's cultural foundation that embraces risky financial activities is expected to sustain its prominent position in the global digital economy.
2.1. High engagement in DeFi protocols
From a cultural perspective, Vietnamese individuals are known for their willingness to embrace risk, particularly when engaging in high-return activities. This propensity for risk-taking is crucial in driving the growth and engagement in the Web3 sector. Such a dynamic environment is fertile ground for activities like yield farming, staking on DeFi platforms, and trading on futures markets, which thrive due to the community's openness to speculation and calculated risks. For instance, during the Sui airdrop period, Vietnam was ranked second in terms of traffic to the Sui homepage, according to Semrush. Furthermore, it is not uncommon to find a Vietnamese account among the top 50 on the Cyber staking leaderboard, showcasing their active participation and influence in these spheres.
2.2. Pioneering in Airdrop Farming and Creative Crypto Use
Vietnamese crypto enthusiasts often engage in the market in innovative and somewhat opportunistic ways, such as airdrop farming—where they participate in multiple DeFi platforms to collect free tokens—and identifying opportunities in new crypto projects for financial gain. These proactive activities not only showcase the community's technical expertise and profound understanding of the blockchain ecosystem but also position Vietnam as a hub for pioneering blockchain technologies.
Before the popularity of airdrops, many Vietnamese were already engaged in Web3 gaming activities. Furthermore, the enthusiasm for new ICOs (Initial Coin Offerings), IDOs (Initial Dex Offerings), and token sales significantly contributes to early funding and provides robust community support for blockchain startups. This active involvement helps propel these ventures forward by providing a solid foundation of funding and community backing from the outset.
The image depicts cyber cafe entirely dedicated to participating in a Coinlist (a well-known token sales platform where Filecoin, Solana, and Flow ICOs were launched) ICO queue, and one person can manage up to a hundred of different accounts.
Farming for airdrops is also easy for Vietnamese users as they employ various methods to make full use of such projects.
However, abusing these methods could backfire as projects may respond by banning Vietnamese users. For example, during rumors of an airdrop by Hashkey Exchange, an overwhelming number of registrations used Vietnamese phone numbers. In response to this surge, the exchange banned registrations from Vietnamese phone numbers to curb the abuse.
3. Contribution to Global Blockchain Innovation
Vietnam's high tolerance for risk has not only fueled domestic growth but also positioned it as a major contributor to global blockchain innovation. The Vietnamese blockchain startup scene is vibrant and rapidly expanding. Several homegrown projects such as Axie Infinity and Coin98 have grabbed international headlines. These successes underscore the exceptional potential of Vietnamese developers and have significantly attracted further investments into the sector. For instance, the $25 million investment fund by Vietnamese Web3 coalition Ninety Eight to support the blockchain ecosystem signifies a strong belief in the future growth of this sector in Vietnam.
4. Continued Growth and Global Impact
What behaviors are commonly associated with cryptocurrency investments in Vietnam? They closely resemble those found in gambling but with a positive twist. These behaviors foster a vibrant, dynamic market characterized by rapid transactions, appealing to international investors and companies looking for fast-evolving, active markets. In Vietnam, resilience and a propensity for adventurous financial dealings are key traits that drive the adoption of new technologies. Any non-Asian entity looking to understand or engage with the Vietnamese market must recognize and leverage this cultural inclination, potentially unlocking substantial opportunities in the Web3 and crypto sectors for the region.
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Disclaimer
This report has been prepared based on materials believed to be reliable. However, we do not expressly or impliedly warrant the accuracy, completeness, and suitability of the information. We disclaim any liability for any losses arising from the use of this report or its contents. The conclusions and recommendations in this report are based on information available at the time of preparation and are subject to change without notice. All projects, estimates, forecasts, objectives, opinions, and views expressed in this report are subject to change without notice and may differ from or be contrary to the opinions of others or other organizations.
This document is for informational purposes only and should not be considered legal, business, investment, or tax advice. Any references to securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or an offer to provide investment advisory services. This material is not directed at investors or potential investors.
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