New possibilities keep Hong Kong at forefront of cutting-edge Web3 expansion
Online gaming platform The Sandbox leads city in metaverse development while nurturing local talent’s digital future
As Hong Kong moves towards its goal of being an international hub for cutting-edge developments in the innovation and technology (I&T) sector, it is essential to offer an entrepreneurial environment that can attract suitable talent and investment.
A range of targeted schemes are in place to do just that. Importantly, though, any venture looking for practical support and assistance, whether to set up or start expanding, can also turn to InvestHK.
This government agency is responsible for attracting foreign direct investment and provides practical advice for mainland Chinese and overseas-based businesses that are new to the city and region. It helps to put companies from every sector – from recent start-ups to long-established institutions – on the right course as they navigate challenges such as local rules, regulations and tax codes to corporate formation, finding premises, recruiting staff, or exploring new markets in Southern China’s Greater Bay Area and beyond.
As countless examples can confirm, its efforts benefit not only the enterprises involved, but also the wider economy by creating high-quality jobs and adding lustre to Hong Kong’s reputation as a centre for innovation, investment, and early adoption of the latest tech advances such as Web3. This term refers to the third stage of internet development that uses technologies that decentralise data ownership and online control – and make greater use of artificial intelligence.
In Hong Kong, Web3 developments are already opening up all kinds of new possibilities, and InvestHK has been quick to support go-ahead companies looking to lead the way.
“Our experience in Hong Kong has shown that the city offers far more than a supportive business environment,” says Sebastien Borget, chief operating officer and co-founder of The Sandbox, a metaverse platform developer. “It also serves as a dynamic hub for testing new ideas, building communities and scaling global operations.”
That is ideal for a company whose main product at present is a free-to-play blockchain-based 3D gaming platform, where players face increasing levels of complexity. Within this, there is a “world-building” element, with the chance to buy virtual land. Game designers of all skill levels can create, publish, own and monetise their unique content, while players can make in-game purchases through an Ethereum-based cryptocurrency called SAND.
Originally founded as Pixowl in 2011, the company achieved initial success with a 2D mobile video game, which evolved over time and ultimately recorded more than 40 million downloads. Its acquisition in 2018 by Animoca Brands signalled a new stage of development as The Sandbox, paving the way to higher-grade content and the prospect of exciting opportunities for continuing growth. Today, the company has operations in more than 10 countries worldwide.
For many users, a big attraction is being able to interact with like-minded enthusiasts during these adventures, or even to sell self-designed NFTs (non-fungible tokens) to interested buyers.
However, that is only one aspect. As Web3 technology catches on, there are also all kinds of possibilities for education, business, sports and culture.
“As we develop our metaverse platform, Hong Kong’s unique blend of Eastern and Western culture and influences can enrich our creative process and enable us to build more inclusive and diverse experiences,” Borget says. “We believe that the future of Web3 and the metaverse in Hong Kong shows remarkable potential, driven by increasing institutional engagement and a flourishing talent ecosystem.”
Indeed, since choosing the city as a strategic base, The Sandbox has partnered with more than 70 leading brands in Greater China in sectors ranging from banking and telecommunications to real estate, rail transport, electric power, fast food and entertainment to help them create metaverse experiences and content.
“Brands are continually looking for new ways to reach and engage with their target audiences,” Borget says. “We see that they can benefit by embracing user-generated content and supporting the creator economy. This allows them to deliver tangible value through in-game worlds and real-life integration.”
In recent years, The Sandbox has increased its presence in the education sector to support Hong Kong’s growing Web3 ecosystem. By collaborating more closely with local schools, universities and design and technology institutes, the company aims to play its part in training students and nurturing talent for both the hi-tech and creative industries.
This initiative ties in neatly with the education sector’s greater focus on science, technology, engineering, the arts and mathematics (STEAM) subjects amid the need to meet anticipated demand for suitably qualified individuals in the years ahead.
“Our objective is to provide hands-on learning experiences where students create digital assets, design games and learn the fundamentals of blockchain,” Borget says. “We work with the Hong Kong Design Institute, Hong Kong Institute of Information Technology and other institutions to integrate Web3 and metaverse developments into their existing curriculum, which can enhance traditional learning methods and give students the skills needed for future careers.”
Besides technical proficiencies, the topics covered typically include digital ownership, intellectual property rights and copyright in the Web3 era, all of which are destined to become a key consideration in everyday business life as ever more enterprises become part of this ecosystem.
Looking ahead, The Sandbox plans to continue to strengthen its presence in Hong Kong while expanding its educational partnerships across Asia and aim to make Web3 education accessible and practical for all. These efforts are an essential part of its long-term regional growth strategy.
“We see Hong Kong as a crucial market for Web3 development,” Borget says. “With its progressive approach to the technology, established legal framework and financial infrastructure, Hong Kong’s strategic advantage as a gateway between mainland China and international markets becomes increasingly vital as Web3 adoption continues to expand worldwide.
“The metaverse has already created hundreds of thousands of jobs and is expected to generate millions more in fields such as content creation, business and tourism. Hong Kong is fully equipped to strengthen its educational initiatives to build a larger talent pool and ready itself for an increasingly digital economy.”