Focus
Development background
Increased interest in piece investment
The introduction of RWA is necessary to compensate for the shortcomings in the liquidity of piece investments.
Investor interest in sculpture investment is increasing as it can be applied to various fields such as digital copyright, music copyright, artwork, and real estate. The biggest advantage of piece investing is that you can invest in expensive assets with a small amount. Until 2022, there was a tendency to focus on related investment techniques as there were many successful cases of stocks, coins, and high-risk assets. However, as bank interest rates rise significantly from 2023, investors are showing interest in safer financial products. In this environment, real-based investment is an important means of achieving stable profits with an upward trend in the mid to long term. However, the biggest disadvantage of piece investing is that it is poorly liquid. Currently, in the traditional financial market, there is no secondary market for piece investments, so investors must sell real assets to recover their investments. RWA (Real World Asset) can overcome the disadvantages of piece investment with advantages such as securing liquidity, realizing piece investment, splitting ownership, improving transparency, and reducing costs.
Growth of the Real World Asset (RWA) market
RWA is short for Real World Asset. It refers to assets that exist in the real world, ranging from raw materials such as gold and coffee to real estate, bonds, and stocks. The idea is to tokenize all types of assets using blockchain. In this process, the value of the token is directly linked to the value of the asset it is linked to, and the token holder has legal ownership of the asset it represents. In other words, tokenization of assets is the process of making assets tradable on the blockchain. RWA is a promising field that the blockchain industry is paying attention to. Recently, there have been active attempts to upload U.S. Treasury bonds, gold, currency, funds, etc. to the blockchain, and according to Boston Consulting Group (BCG), the RWA market is expected to grow to approximately $16 trillion by 2030. BlackRock CEO Larry Fink also said, “The next generation of financial markets and securities will be the tokenization of assets,” emphasizing that the future of finance lies in the tokenization of assets.
Need to introduce RWA to activate Web3.0 games
The Web 3.0 game market is expected to grow at an average annual rate of about 18% between 2021 and 2032, reaching about $30 billion in 2032. Although Web 3.0 games are not yet a popular market, blockchain gaming activity is experiencing significant growth. The Web3 game market began to lose investment amount with the advent of the cryptocurrency bear market in 2022. According to Game7's web3 gaming market report, the investment amount related to web3 games in 2023 is $1.5 billion, a decrease of about 84% compared to the total investment in 2022. Investments in Crypto Winter decreased sharply, and the enthusiastic interest of users also cooled significantly, leading to a significant decline in demand in the web 3 game market. The number of Web3 games whose development and service will be discontinued in 2023 amounts to approximately 400. After the rise and fall of DeFi and NFT, the cryptocurrency industry is increasing interest in RWA as an asset that guarantees trust and complies with regulations. In the past, RWA products centered around gold and real estate, but recently RWA based on game items has been discussed. Although it is still at the product review stage, it is considered a business-viable field that both investors and game developers are actively preparing for.
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