The Philippines: Asia’s next crypto hub?

The Philippines’ crypto companies are being overlooked by the country’s “mainstream” startups.

That’s the opinion of Colin Goltra, COO of play-to-earn (P2E) gaming startup Yield Guild Games (YGG). The Filipino American expressed his “occasional frustrations with how the Philippine startup scene is portrayed” to Tech in Asia.

He believes that the country’s billion-dollar investment outcomes are being ignored, thanks to a startup ecosystem that is largely driven by “corporate VCs that have conservative investment mandates.” These investors tend to miss what’s happening in the crypto world, which he says has become “such a major source of innovation” in the Philippines.

Indeed, more crypto startups in the country are becoming prominent and securing money at rising valuations.

Nichel Gaba, founder and CEO of Philippine Digital Asset Exchange (PDAX), echoes this view and cited how Covid-19 was a catalyst for this development. “The pandemic, as horrible as it is, created the ideal setting for a technology like crypto to come to the fore. The industry was able to showcase the power of decentralization because the centralized structures weren’t working well.”

Among the up-and-comers are familiar names that have been around since the early 2010s and newer players that are flying under the radar but securing sizable funding.

These include YGG and non-fungible token generator BreederDAO, the first two Philippines-based companies to receive funding from Silicon Valley VC Andreessen Horowitz (a16z).

A16z’s investments in BreederDAO and YGG, in particular, have boosted interest in crypto among the country’s investors and entrepreneurs and are “encouraging more locals to explore this space,” says Joan Yao, vice president of investments at local VC Kickstart Ventures.

Kickstart is an early investor in Coins.ph, one of the first blockchain-powered platforms to break into the Philippines’ mainstream consumer market.

“Local” crypto startups still matter

Given the borderless nature of cryptocurrencies, many startups in the space have remote teams – it doesn’t matter where the founders are from.

Indeed, some crypto startups that once considered making Singapore their headquarters are now heading to cities like Dubai for this very reason.

See also: Is Dubai stealing Singapore’s thunder in crypto?

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Growing pains

The future for crypto startups