Table of Contents
As more and more companies enter the Web 3.0 space, the value of startups specializing in Web 3.0 that support this trend will increase further. These companies are likely to go public in the future and should be followed even now.
In this report, we have selected 10 leading Web 3.0 companies and researched their future prospects from our own perspective.
In the “In-depth Study of 50 Japanese and U.S. Stocks” in Iolite Vol. 4, we introduced companies and groups involved in Web 3.0-related businesses and services. You should have learned that a number of well-known companies are currently focusing their attention on the Web 3.0 area and are actually promoting their businesses.
Naturally, not all of the listed companies involved in Web 3.0-related businesses and services have been covered in this report, so the number will increase further. Even if you are not familiar with NFT or crypto assets, you may find services provided by major companies in your neighborhood.
These services are supported by startups that have specialized in the Web 3.0 domain since their inception. Almost all of the companies currently listed on the stock exchange have not developed businesses related to the Web 3.0 domain from the beginning, and even if they shifted their corporate direction, it is unlikely that Web 3.0-related businesses would account for the majority of their sales at this point.
Therefore, the cooperation of so-called “Web 3.0 native” companies specializing in Web 3.0 is indispensable, and their presence is expected to become more important in the future.
Such “Web 3.0 native” companies must naturally be looking to go public in the future. In fact, there are many companies overseas that have listed their shares mainly in Web 3.0-related businesses. Even for existing traditional investors, these companies are easier to include in their portfolios for exposure, as they are more easily exposed to crypto assets than direct investments.
Of course, if market conditions for crypto assets deteriorate, stock prices can plummet. On the other hand, if market conditions are favorable, they may explode and generate large gains.
In Japan, there are no companies that have recently gone public mainly in Web 3.0-related businesses. However, there are a number of companies whose moment is approaching every second.
For example, HashPort, which is involved in businesses related to NFT and blockchain games, is a leading candidate for a company that is a native Web 3.0 company and may go public in the future. Currently working with MSI on SBTs (soulbound tokens), which cannot be bought, sold, or transferred, the company is expected to deepen its relationship in the future.
HashPort is also known for being the first IEO in Japan to raise funds through its proprietary token pallet token (PLT). The company is also actively involved in blockchain game production, and its presence is growing beyond the Web 3.0 domain.
Another strong candidate would be double jump.tokyo, which also has a track record in blockchain games and NFT. The company has developed blockchain games such as “My Crypto Heroes,” which has become the world's No. 1 blockchain game in terms of transaction volume, and also provides asset management services for businesses.
Currently, the company is focusing on the use of the game-specific blockchain Oasys, and is in an important position in the Japanese blockchain gaming space.
The keyword that both HashPort and double jump.tokyo have in common is “games. With many of Japan's leading game companies now developing blockchain games, many are calling for games to be the driving force behind Japan's Web 3.0. The two companies, in particular, have been working with an increasing number of major companies and have a proven track record, which should pave the way for an IPO by establishing a more stable business foundation.
In the crypto asset area, bitFlyer and Coincheck have the potential to go public.
The company's founder, Yuzo Kano, who has long expressed interest in going public, has returned as president, and this should accelerate bitFlyer's move. bitFlyer has had four presidential changes in the past three years, and the company urgently needs to solidify its internal foundation first.
In addition, the market for crypto assets has been deteriorating, and the company's performance has not been good, so it will probably take some time before it can list its shares.
On the other hand, Coincheck is already moving toward a stock listing, aiming for a SPAC listing on NASDAQ through a merger with Thunder Bridge Capital Partners IV. The initial plan was to list by the end of 2023, but the time frame has been extended.
Coincheck's parent company, Monex, places importance on the crypto asset business, and the company intends to expand its services and stabilize its customer base through the listing.
Other companies with potential for further growth include JPYC, which offers the Japan-linked stable coin JPYC, and Ginco, one of the leading wallet companies in Japan.
JPYC is aggressively acquiring licenses to focus on payments, and if its recently announced payment service, “JPYC PAY,” gains traction, it may accelerate its move toward a stock market listing.
Ginco's value as a company will inevitably increase as demand for crypto assets and NFTs increases, so the company will first need to improve market conditions and build on its track record accordingly.
HIKKY and Gaudiy, which are strengthening their ties with major players, are also noteworthy.
HIKKY is developing its metaverse business under the slogan of “turning 100 cities around the world into a metaverse,” and is building up a track record in VR events. In particular, HIKKY's metaverse is highly popular, with more than 1.2 million visitors to the Virtual Market, which is positioned as the world's largest VR event.
The Metaverse temporarily experienced a boom when Meta announced that it would focus on the Metaverse, but the reality is that the Metaverse is not currently attracting much attention. However, companies that steadily advance their business during such a period will later gain credibility and may become industry leaders when the boom comes again.
Gaudiy, a company that creates fan communities that incorporate Web 3.0 elements, is expanding its business by focusing on IP, which is one of Japan's strengths. In addition to receiving investment from Sony, KDDI, and others, Gaudiy plans to develop its services together with Sanrio, which has strong IP, and may go public at a very early date, depending on developments.
Minto and StartBurn, which are expanding their business centered on NFT, which is essential for mass adoption of Web 3.0, are also companies that have the potential for an early IPO, depending on industry trends.
Minto's NFT of “Usagyun! which was developed in partnership with LINE, has recorded approximately 300,000 downloads. The company has also developed a metaverse utilizing popular IPs such as “Fist of the North Star” and “Captain Tsubasa,” and if these businesses are successful, the company may accelerate its move toward an IPO.
Focusing on digital art, StartBurn is building an infrastructure that will enable the verification of authenticity of artworks. In recent years, the demand for art-related NFTs has declined compared to the boom years, but this does not mean that the future of digital art or its demand is declining.
The technology to prove authenticity, which has become an issue in art, will definitely be needed in the future, so the future trends of the industry should attract attention.
It is unlikely that any of these companies will go public anytime soon, as it will depend greatly on the market for crypto assets and the demand for NFTs and metaverse. Therefore, the first step should be to understand what these companies are doing now and how they are expected to develop in the future.
This section introduces the future prospects and characteristics of the companies named in this report. We hope you will find it useful.
The data presented here is based on some of the information available on official and industry association websites as of September 1, 2011.
Ten leading Web 3.0 companies are selected based on the editorial department's original viewpoint. The future outlook is also explained.
Category：Game/NFT
First IEO in Japan, accelerating Web 3.0 business in partnership with a major player
Year Established: July 2018
Capital: 49 million yen
Representative: Yoshida, Sekihiro
Focusing on “SBT” area, which cannot be bought, sold, or transferred, together with SMBC, and accelerating Web 3.0 business mainly in Japan through alliance with KDDI. Also plans to provide wallets at Expo '70 in Osaka and Kansai.
HashPort, with the mission of “digitizing all assets,” is developing Web 3.0 business in various fields. 2021 will mark the first IEO in Japan with the issuance of palette tokens (PLT) through its subsidiary HashPalette. Currently, the company is focusing on the SBT (Soul Bound Token) area, which cannot be bought, sold, or transferred.
The company's scale continues to expand and has increased its efforts with major companies, including partnerships with Sumitomo Mitsui, KDDI, and others in the SBT and NFT areas. The company is also expected to provide its Web 3.0 wallet for the Osaka-Kansai Expo to be held in 2025, and its presence is growing every year.
▶▶Future Outlook
Wallet to be provided at the Osaka-Kansai Expo scheduled to be held in 2025.
More partnerships with major companies in the Web 3.0 area are likely to be formed in the future.
Category：Game/NFT
Blockchain game development company with the world's No. 1 track record
Year of establishment: April 2018
Capital: 600 million yen (as of June 2022)
Representative: Hironobu Ueno, Ryo Satisfaction
Developer of “My Crypto Heroes,” which recorded the world's No. 1 in terms of transaction volume, etc. He is also involved in many popular games such as “Asset Million Arthur”, as well as providing and developing wallet services.
Founded as a developer of NFT and blockchain games, the company has been involved in a number of popular blockchain games, including “My Crypto Heroes,” “BRAVE FRONTIER HEROES,” and “Asset Million Arthur.
The company is also a leading Web 3.0 developer in Japan, offering the “N Suite,” which allows multiple people to manage private keys, and a wallet specialized for Oasys, a game-specific blockchain, through its subsidiary.
The company has already publicly stated that it will develop projects using Oasys, and plans to release a new blockchain game utilizing the “Sangokushi Taisen” IP by the end of 2023.
▶▶Future Outlook
Oasys-based project development in progress
Plans to release a new game utilizing the “Sangokushi Taisen” IP by the end of this year
Category：Finance
Pioneer of crypto asset exchanges in Japan No. 1 in bitcoin trading volume for 6 consecutive years
Year of establishment: January 2014
Capital: 4,123.88 million yen (including capital reserve)
Representative: Yuzo Kano
Japan's leading Web 3.0 company that has operated bitFlyer, the largest crypto asset exchange in Japan, and has supported the industry since its early days. It is also involved in the development of its own blockchain, Miyabi.
bitFlyer, Japan's largest crypto asset exchange, has been in operation since the early days of crypto assets. It is currently expanding its services globally, with offices in the United States and Europe. The company boasts the No. 1 share in domestic bitcoin trading volume for six consecutive years, making it one of Japan's leading crypto asset exchanges.
It has also developed its own blockchain, “Miyabi,” which is already being used in a variety of fields.
The company has been rumored for some time to have an early IPO in the Web 3.0 domain. It is possible that the parent company, bitFlyer Holdings, may go public as soon as it is ready.
▶▶Future Outlook
Focus on the timing of the IEO announced for 2022
Expect strategies that leverage the strengths of one of Japan's leading exchanges
Category：Finance
Operation of Crypto Asset Exchange Coincheck Continues Efforts to List on NASDAQ in the U.S.
Year of establishment: August 2012
Capital: 385 million yen
Representative: Satoshi Hasuo
Long-established exchange that has been ranked No. 1 in Japan for four consecutive years in terms of app downloads. The company is the first crypto exchange in Japan to implement an IEO and develop an NFT marketplace, and its every move is attracting attention.
Coincheck is a popular crypto exchange with a large number of users and has been ranked No. 1 in Japan for four consecutive years for the number of app downloads. Coincheck is the first crypto exchange in Japan to conduct an IEO, and has also taken on the challenge of developing an NFT marketplace and other new initiatives.
Currently, the company is developing its business under the umbrella of Monex, while aiming to list on SPAC on the NASDAQ in the US. The initial listing was scheduled for July 2023, but it was later announced that the deadline would be extended by one year. This is a move that has been talked about for some time, and the company is expected to continue to attract attention.
▶Future Outlook
Focus on whether listing can be achieved with a one-year deadline extension
Continue to implement high-profile initiatives in Japan
Category: Finance
Pioneer of Japanese Yen Stablecoin Driving the area of attention due to legal reform
Year of establishment: November 2019
Capital: 100 million yen
Representative: Noritaka Okabe
Offers “JPYC”, which is linked to Japanese Yen in value, as a prepaid means of payment. Based on the revision of the law regarding stable coins, the company is looking to further expand its business through the acquisition of new licenses.
JPYC is known for issuing “JPYC,” a stable coin linked to the Japanese yen, and will acquire a new license to promote the use of stable coins for payments as demand for stable coins increases in response to the revised Funds Settlement Act, which will be enforced in June 2023.
In addition, JPYC has completed registration as a third-party prepaid means of payment issuer and will launch “JPYCPAY,” a payment service similar to PayPay and others. This will enable JPYC to be used in a wide range of areas, improving convenience.
The expansion of JPYCPAY's use is likely to attract more attention to JPYC and pave the way for the company's IPO.
Outlook for the Future
JPYCPAY” to improve convenience of stable coin payments
As JPYC's convenience improves, the path toward an IPO gets closer.
Category: Finance
Reputation for important wallets in Web 3.0 Increasing number of collaborations with major companies
Year Established: December 2017
Capital: 410 million yen
Representative: Yuto Morikawa
Ginco Enterprise Wallet” boasts the top share of crypto asset wallet installations in Japan, and is attracting increasing demand and attention in line with growing interest in the Web 3.0 domain.
Ginco's “Ginco Enterprise Wall et” supports the largest number of stocks in Japan and boasts the No. 1 adoption record, especially among crypto asset exchanges, and also provides solutions that support NFT and ST (security tokens). The company is also expanding its business scale in line with the growing interest in the Web 3.0 domain in Japan.
The company is also increasing the number of partnerships with major companies, and recently announced a collaboration with Mitsubishi UFJ Trust and Banking Corporation to provide the first “crypto asset trust” in Japan.
Wallets are an important part of the Web 3.0 space, and the number of companies that have partnered with Ginco, with its extensive experience and knowledge, is expected to increase in the future.
▶▶Future Outlook
Accelerating moves to provide Japan's first service with Mitsubishi UFJ Trust and Banking Corporation
More companies will join forces with Ginco as Web 3.0 expands
Category：Information and Communication Services
World's Largest VR Event, Guinness World Records Set, Attracting Increased Attention
Year of establishment: May 2018
Capital: 100 million yen (excluding capital reserve)
Representative: Yasushi Funakoshi
More than 1.2 million people visited the Virtual Market, the world's largest VR event. It has established various Guinness World Records and boasts of its popularity.
Develops and provides HIKKY's own metaverse engine, “Vket Cloud,” which runs on a web browser. The “Virtual Market” held in the metaverse is popular as the world's largest VR event, and has also set a Guinness World Record for the number of booths at a VR market event.
The company is also involved in the “Parareal World Project” to transform 100 cities around the world into a metaverse, creating a worldview that fuses the real with the metaverse. The company has already built cities such as “Parareal Shibuya” and “Parareal New York” in the metaverse, and it is likely that the company's scale will further expand as it gains popularity.
▶▶Future Outlook
Pushing forward to create a metaverse of 100 cities around the world
Further collaboration with large companies will be key to future expansion.
Category：Information and Communication Services
Maximizing fan enthusiasm by leveraging blockchain such as NFT
Year of establishment: May 2018
Capital: 2,007.44 million yen (including capital reserve)
Representative: Yuya Ishikawa
Gaudiy builds and manages fan communities utilizing NFT, etc. By combining Web 3.0, Gaudiy will increase the value of Japan's proud IP content more than ever.
Gaudiy builds and operates “Gaudiy Fanlink,” which enables the formation of unique communities for each IP using NFT and DID (Distributed ID). The company's strength lies in its ability to create more concrete measures and fan experiences by quantifying the “heat” of fan activity and contribution and making it possible to measure the effectiveness of these measures.
Sony, Mitsubishi UFJ, KDDI, and others have already invested in the company, and expectations for the company are growing. In addition, Sanrio has announced that it will develop a global service utilizing its own character assets through Gaudiy Fanlink. These developments suggest that Gaudiy's presence in the market is likely to increase in the future.
▶▶Future Outlook
Developing global services with Sanrio using powerful IP
Gaudiy and Mitsubishi UFJ to accelerate moves to commercialize wallet services
Category：Information and Communication Services
Top player in the NFT domain, also in talks of collaboration with LINE
Year of establishment: January 2022
Capital: 100 million yen
Representative: Kazuhiro Mizuno
Promoting NFT by utilizing famous domestic character IP. Popular character “Usagyun! stamps have been downloaded more than 500 million times and the momentum continues.
Minto was formed through the merger of WWWAAP, which has strength in SNS marketing utilizing anime and manga, and Quon, which has the world's largest number of character stamp downloads.
The company's Metaverse, which utilizes the IPs of “Fist of the North Star” and “Captain Tsubasa,” has become a hot topic of conversation. NFT, which was developed in partnership with LINE, has recorded approximately 300,000 downloads.
As a Web 3.0 company involved in both NFT and Metaverse, the company's future development is one to look forward to.
▶▶Future Outlook
Accelerate Metaverse and NFT by leveraging popular IPs
Developing high-profile initiatives together with major companies and startups
Category：Information and Communication Services
NFT startup from the University of Tokyo: Innovating art with blockchain
Year of establishment: March 2014
Capital: 1.59 billion yen (including reserves)
Representative: Taihei Shii
Building a blockchain infrastructure that enables the authentication of authenticity and authenticity of artworks in order to protect the value of art. A promising startup in which Dentsu and other major companies have invested.
Founder Taihei Shii, who also works as an artist, founded the company while a graduate student at the University of Tokyo. Focusing on the art domain, the company has created a blockchain infrastructure called “Startrail” that enables the verification of authenticity and forgery of artworks, which is a challenge.
Startburn has worked with Toyota, Shueisha, and the Yomiuri Giants professional baseball team, and was commissioned by the Ministry of Economy, Trade, and Industry (METI) to conduct the first NFT verification experiment. The company has also received investment from Dentsu, Kyoto University, and the University of Tokyo, and is expected to play an active role in the digital society of the future.
▶▶Future Outlook
Stronger relationship with Shueisha, which owns popular IP
Expectations are high for the company to build up its track record, especially in the art domain.
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