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What about information and telecommunication services from major players such as NTT, KDDI, Z Holdings, and GMO Internet Group?
Although stock prices vary from company to company, we can expect stable, if not spectacular, movements in the stock price of these companies, as they are social infrastructure. NTT, among others, announced a 1:25 stock split in May 2023 and a 13th consecutive fiscal year of dividend increases. It has definitely made it easier for individual investors to buy.
Meanwhile, the SoftBank Group, which is active in the fintech, mobility, and e-commerce and logistics investment businesses, posted a consolidated investment loss of 690 billion yen and a net loss of 477.6 billion yen for the first quarter of FY03/2024. However, the losses are shrinking, and further improvement could make the stock price interesting in 2024.
Category：Information and communication services
Investing 600 billion yen in the Web 3.0 domain
NTT's seriousness in making a huge investment in Web 3.0 business with the goal of global expansion of Web 3.0 services originating in Japan is highly anticipated.
In November 2022, NTT announced plans to invest as much as 600 billion yen in the Web 3.0 domain. Starting with this, in the same year, NTT DOCOMO agreed to collaborate with Accenture, a general consulting firm, for the purpose of accelerating the spread and social implementation of Web 3.0.
In 2023, NTT DOCOMO further accelerated its entry into the Web 3.0 field, establishing NTT Digital, a subsidiary to promote Web 3.0, in July. In July, it established NTT Digital, a subsidiary promoting Web 3.0, and announced plans to collaborate with 13 companies, including Sanrio, Sumitomo Mitsui Trust Bank, and Hitachi, Ltd.
The company aims to develop and expand related systems and create use cases such as content management and trading using NFT, FinTech using cryptographic assets and stable coins, and self-management of personal data using DID (Distributed ID).
In addition, the company has begun development of a token wallet that will serve as a gateway to Web 3.0 services and is scheduled to be available by the end of 2023. The wallet will back up private keys, use biometric authentication, and filter unauthorized transactions, aiming for safe and secure use without awareness of Web 3.0 and blockchain.
▶▶︎Future Outlook
NTT, with its organizational capabilities to adapt to changes in the business environment, has invested heavily and has high expectations for the Web 3.0 business, which it is entering in earnest.
Category : Information and Communication Services
Alpha U” project to invest 100 billion yen over 3 years
Compared to the seriousness of the 100 billion yen investment over 3 years, the lack of clarity regarding the handling of NFT and crypto assets is a cause for concern.
KDDI announced “αU,” which will provide Web 3.0 services such as metaverse, live streaming, and digital art in March 2023.
Alpha U” will consist of five main services: ‘Alpha U metaverse,’ a metaverse space; ‘Alpha U live,’ live content; ‘Alpha U market,’ an NFT marketplace; ‘Alpha U wallet,’ for managing NFT and crypto assets; and ‘Alpha U place,’ which will offer a new shopping experience. αU metaverse,” ‘αU market,’ and ‘αU wallet’ will be launched at the same time as the announcement. The “αU live” and “αU place” services were launched this summer.
With the goal of “creating a metaverse for a world where anyone can become a creator and be close to the new generation that moves lightly between reality and virtuality,” the company is now in full swing with initiatives related to the metaverse in addition to its existing efforts.
In addition to the 100 billion yen level of investment over the next three years, the company plans to promote urban metaverse in cooperation with local governments, as it has already done with “Virtual Osaka” and “Virtual Shibuya,” which reproduce cities in the real world in metaverse space.
▶▶︎Future Outlook
Although there are still many issues to be addressed in the just-launched “Alpha U,” it has the potential to become a major player depending on future developments.
Category：Information and communication services
SoftBank Tech Night Fes 2023” was very popular.
SoftBank, which has many affiliated companies capable of planning new businesses, is actively participating in various fields in the Web 3.0 domain.
SoftBank is known for its investment in crypto asset and blockchain-related companies, mainly overseas, through its group companies, and in May 2023, the company announced a partnership with Slash, a crypto asset payment service, through its subsidiary companies.
In February 2023, the company announced its participation as a validator in Oasys, a gaming-specific blockchain company, explaining that it would cooperate with Oasys to accumulate technology and knowledge related to Web 3.0, train human resources, and provide services.
In addition, in March of the same year, “SoftBank Tech Night Fes 2023,” an event for engineers, was held at SoftBank's Takeshiba headquarters. Admission was via ticket NFT, and more than 500 people attended the event both at the venue and online.
By leveraging SoftBank's customer base, financial strength, and influence, the Web 3.0 domain in Japan is expected to attract even more attention. Recently, SoftBank has been focusing on the AI domain, and if it can establish a presence and show results in the Web 3.0 domain, it is likely to have a positive impact on the company's stock price.
▶▶︎Future Outlook
The company has an environment in which it can collaborate with global unicorn companies and plan new businesses, and is expected to be active in the Web 3.0 domain as well.
Category：Information and communication services
PayPay connects to “HIVEX
Z Holdings has the potential to ride the rising tide, depending on the synergies created by the collaboration of its affiliated companies.
Although Z Holdings is said to have suffered a major disappointment with a loss for the fiscal year ending March 31, 2023, it is fair to say that there are great expectations for the share price if the company succeeds in creating synergies between services that were not created in the current fiscal year, as represented by LINE and Yahoo!
In addition, LINE, which merged with Yahoo Japan, has been accumulating achievements in the Web 3.0 domain, such as the “LINE BITMAX” crypto asset exchange and the “DOSI” NFT marketplace, which is now operating in 180 countries around the world through its proprietary blockchain. The company plans to continue expanding its Web 3.0 business.
Furthermore, PayPay has connected to the blockchain-based payment network “HIVEX” and announced linkage with Taiwanese cashless payment services “JKO Pay,” “PXPay Plus,” and “E.SUN Wallet.
The combined number of users of the three services exceeds 10 million, so this is an impactful linkage for PayPay. This is with an eye on tourists visiting Japan, and if inbound revenue increases in the future, it could have a significant impact on the company's stock price.
▶▶︎Future Outlook
If synergies between businesses such as PayPay can be realized, the share price could rise significantly.
Category: Information and communication services
Diversified Web 3.0 services, including crypto asset exchange GMO Coin
Many GMO Internet Group companies are developing businesses in the Web 3.0 domain, including GMO Coin and Adam byGMO.
GMO Internet Group established GMO Coin in 2016 and began offering crypto asset exchange services the following year. It has also been developing Web 3.0-related businesses in a diversified manner at a very early stage in Japan, including the operation of Adam byGMO, an NFT marketplace with more than 100,000 users as of July 2023.
The company later established a venture capital firm, GMO Web3, which changed its name to GMO AI & Web3 in May 2023 to provide support for AI startups in addition to Web 3.0.
In addition, the company announced Japan's first NFT domain registration service, Value Domain Web3 by GMO, in May 2023. This service allows anyone to easily register and own NFT domains without the need to prepare wallets or crypto assets in advance, making it an extremely convenient service that allows users to perform everything from searching to purchasing.
The company's stock price is likely to see a positive impact as it expands its Web 3.0 business by leveraging the expertise it has gained in the Internet infrastructure and financial businesses.
▶▶︎Future Outlook
The company is also involved in financial and other businesses in addition to the infrastructure business, and is expected to continue to expand its corporate scale in the future.
Category：Information and communication services
Launch of a new book with the world's first “NFT e-book
Launch of the world's first new book with “NFT e-book” and provision of a viewer application for NFT content are among the many topics of interest.
MediaDoo, the number one e-book industry market share provider, focuses on capitalizing on digital content and begins selling content with digital benefits using NFT.
In February 2022, the company will start offering “FanTop,” an official viewer app for iOS and Android that allows users to display and view NFT fan items obtained through the NFT marketplace “FanTop” with 3D room and augmented reality (AR) functions, etc., showing its aggressive stance in the Web 3.0 business. NFT holders are the only ones who can view the NFT and the NFTs.
This is the first time in Japan that a viewer app has been provided that allows only NFT holders to view content linked to NFTs, 3D room displays, and AR viewing.
It has also attracted attention for its implementation of a secondary distribution market function for Japanese yen settlement, the first in Japan, built on the blockchain Flow, which is being adopted by a number of major Japanese companies.
In June 2023, Hayakawa Shobo will begin offering “new books with NFT e-books,” a set of “NFT e-books” containing the same content as the full-length new book, for all five titles in the new Hayakawa Shinsho label's inaugural publishing lineup. This was also the world's first “new book with NFT e-book” and attracted a great deal of interest.
▶▶︎Future Outlook
The company expects to maintain its growth trend due to the steady expansion of the e-book market and growth of new businesses.
Category: Information and communication services
Ateam launches its first blockchain game “Crypt Busters
Ateam, the largest app game company, entered the Web 3.0 domain and developed a new blockchain game
Ateam Entertainment, an app game company under the Ateam umbrella, has announced that it will focus on development and post-release operations in new areas, such as blockchain games utilizing crypto assets and the Metaverse, in order to break out of the downward trend in its game business and achieve renewed growth.
In 2023, the company and Singapore-based BOBG announced “Crypt Busters,” an original blockchain game for the global market that introduces proprietary tokens and has been in service since August 2023.
According to the company, “Crypt Busters” is Ateam Entertainment's first blockchain project, and is designed to provide a fun Web 3.0 experience. This game was the company's first original game in the Web 3.0 domain.
In order to break out of the losses it has been incurring for the past several years, the company will expand its investment in game development and new businesses in the Web 3.0 domain, and its ability to get back on a growth trajectory will likely be the turning point.
▶▶︎Future Outlook
Depending on the original blockchain game developed as a way to break out of several years of losses, the company may be able to get back on a growth trajectory.
Category : Information and Communication Services
Promoting the “Web 3.0 x Regional Development” Project
Web 3.0 business by Gaiax, which provides consulting and practical support for DAO, has the potential to grow steadily in the future.
GAIAX will launch full-scale operations in the Web 3.0 and DAO domains in 2022. Starting with the operation of Japan's first DAO-type shared house, the company is accelerating its efforts to realize social implementation of new technologies and concepts centered on blockchain and Web 3.0, such as supporting the conversion of existing NPO organizations into DAOs and the launch of DAOs for local government associations.
According to Gaiax, the total number of “Web 3.0 x Regional Development Projects” promoted by the company reached 111 as of April 2023, an increase of approximately eight times over the same period last year. These figures suggest that the company is attracting a high level of attention.
Gaiax has also announced that it will enter the stable coin space in response to the revised Funds Settlement Law that went into effect on June 1, 2023.
In accordance with the revised law, financial institutions such as city banks and regional banks are expected to issue stable coins and digital local currencies one after another in the future, and Gaiax will conduct DAO awareness activities for each financial institution and promote projects for their introduction.
▶▶︎Future Outlook
The use of Web 3.0 by local governments is rapidly increasing, supported by the government, and the “Web 3.0 x Regional Development Project” is expected to attract even more attention.
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