More than half of the population in Southeast Asia is under 30, making it a desirable market for new technologies. Not surprisingly, several countries in the region, such as Singapore and Vietnam, have some of the world’s highest levels of crypto adoption.
Although Indonesia is not the most active in crypto in the region — the total value of crypto received was less than half that of Thailand from July 2021 to June 2022. according to Chainalysis — The country is believed to have huge potential for web3 adoption, thanks to its young and sizeable (270 million) population, as well as dynamic web2 industry.
Indonesia ‘catch up’ with web3 because its vast talent pool is still in the web2 industry, one crypto investor indicated previously.
But entrepreneurs are working to bring blockchain applications to the multicultural archipelago. Pinto accumulated $113 million in funding in June to offer crypto trading services to Indonesians. Now a startup called SerMorpheus hopes to connect brands and consumers through digital assets.
A digital asset in the form of non-fungible tokens can be used to authenticate ownership. For example, NFTs can prove one’s access to exclusive content, membership in an organization, or transaction discounts.
“Indonesians are heavy users of social media content. A lot of intellectual property is being created, but creativity is under-exposed when it comes to web3,” noted SerMorpheus co-founder Kenneth Talley. “With so much money going into crypto, why not a lot [web3] creativity coming from Indonesia?’
Part of the problem, he believes, is that tech-loop creators need to jump in to create smart contracts; they will need to connect to multiple platforms and manage relationships with each. On the consumer side, users are already locked into the wallet setup stage and worried about losing their private keys.
As such, SerMorpheus recently closed a $2.5 million seed round to create a user-friendly platform for businesses to create NFTs; end users, on the other hand, can buy and trade digital assets on the platform with the local currency rupee. To date, the service has been used by around 27,000 people to claim tickets to music events, exclusive perks for celebrity fans, football club memberships and more, the founder said.
The platform still manually onboards businesses and brands – so far 25 of them, including Indonesia Comic Con — but the next step is to make SerMorpheus as automated as creating a Facebook page. To do this, smart contracts, or lines of code that execute according to predetermined rules, will be standardized, as will the types of benefits that creators create for their end users.
The startup takes a 5-10% cut of NFTs mined on its platform and charges a 2% fee on secondary sales.
Its seed round was led by Intudo Ventures with participation from 500 Global, Febe Ventures, AlphaLab Capital, BRI Ventures and Caballeros Capital. With a team of 30 people, SerMorpheus plans to spend the fresh capital building out its infrastructure and hiring across all functions.