Exclusive Interview with Pundi AI: Pioneering Innovations in Web3 Payments and Decentralized AI Data Solutions

This article presents the transcript of an interview by WuBlockchain’s founder, Colin Wu, with Zac, the founder of Pundi X Labs. Zac discusses the origins and development path of Pundi X Labs, one of the first companies to launch cryptocurrency payment solutions in Southeast Asia. Initially focused on QR code payments to support the unbanked, Pundi X Labs gradually expanded into the Web3 space. Zac shares how, after raising funds through an ICO, the team developed a decentralized data annotation platform enhanced by AI models, aiming to bridge traditional B2B and Web3 communities. Zac also offers insights into Southeast Asia’s Web3 market, noting the potential and future of its young workforce in decentralized AI data training tasks.

Background of the Pundi X Labs Team and the Market Opportunity for QR Code Payments in Southeast Asia

Colin: Zac, can you start by introducing yourself and your project? You’ve been in the industry for a long time — when did you get started? Could you tell us about your entry into this space?

Zac: Sure. I was born and raised in Malaysia, studied in Europe, and later worked there. I was lucky to join a browser company early in my career, and I was very interested in China’s rapid internet growth. So from 2006 to 2012, I was in Europe, then around 2012, I moved to Beijing to continue working with the browser company. My first entrepreneurial experience was in China’s internet scene, which taught me a lot, particularly about rapid product iteration. As I mentioned before, our decision to launch QR code payments in Southeast Asia was influenced by experiences in China.

We started around 2017, introducing QR code payment solutions in Southeast Asia as the digital currency space began to rise. Although digital currency payments were simple enough, they lacked practical applications.

While the conversation often focused on complex or large-scale solutions, we wanted digital currency payments to be accessible to regular people — even enabling in-store digital currency purchases. Southeast Asia presented a unique opportunity: in many countries, the population has low bank account penetration. Our goal was to help users leap directly from a non-banked environment to QR code payments. We began this work in 2016, becoming one of the first teams to introduce QR code payments in the region, which led us to realize QR payments could also serve digital currency needs, sparking our entry into the crypto space.

In 2017, as ICOs became popular, we were a “grassroots” team. Although I started buying Bitcoin in 2015, I didn’t fully engage with the crypto community until 2017, attending my first crypto event in Singapore. We approached it from a QR payment method and gradually entered the crypto sphere. Unlike many teams, we had a tangible business and product before joining the crypto space. While we accepted crypto payments, we hadn’t fully engaged with the ecosystem.

Colin: Did you take inspiration from the success of WeChat Pay in China to introduce a similar concept in Southeast Asia?

Zac: Yes, exactly. We thought about building a billion-dollar company, and for that, we needed the right market. Southeast Asia was a familiar territory to us, so we adapted experiences from China’s WeChat Pay and Alipay to the region. It’s been a journey from European internet exposure to China’s internet and now to Southeast Asia.

Entering the Crypto Space in 2017: The ICO Process and Reflections

Colin: What led you to enter the crypto space in 2017? Could you walk us through your ICO experience?

Zac: Sure. We moved to Indonesia, the world’s fourth most populous country, in 2016. At that time, Indonesia’s internet development was fast but lagged China by a couple of years. Following the “rural areas to cities” internet adoption model, we promoted QR code payments there.

However, we noticed there wasn’t an app supporting QR code payments, so we needed to develop one that integrated QR code functionality. Since we were launching an app, we thought, why not also support digital currency payments? This was especially relevant in Indonesia, where less than 30% of the population held bank cards. The idea prompted us to incorporate crypto payments to meet the financial needs of unbanked users.

Regarding our ICO, we were initially unfamiliar with its structure, unaware that post-ICO negotiations with capital groups might be required. Our grassroots ICO approach allowed everyone, from everyday users to prominent VCs, to buy tokens on the same terms.

Reflecting on the ICO, many projects raised funds based only on white papers, but we were raising with a functional product. While other projects were pitching lofty problems they might solve, we were focused on real-world use cases, enabling the mainstream users to adopt crypto for daily usage, not for speculation.

Colin: Did most of your investors come from China? I heard you raised about $50 million in Ethereum, Bitcoin, and NEM?

Zac: No, we didn’t open ICO to users or advertise in China. Our main user base came from Japan, South Korea, and Turkey, as we intentionally avoided Chinese investors.

Focus On Real-World Use Cases After the ICO and Expansion into Developing Countries

Colin: You’ve remained relatively low-key since then. What has the team been focusing on?

Zac: After the ICO, we worked with many Web2 partners, such as physical retail and government entities, not just within crypto. From 2017 to 2018, we focused on non-crypto groups, participating in events like Barcelona’s MWC, Las Vegas’ CES, and the Dubai government’s showcases. This probably contributed to our low-profile operations, even though we were active.

We also invested significantly in regulatory negotiations, securing licenses with various governments. By 2018, we reduced our presence in crypto-focused events like Token2049, focusing more on Web2 collaborations.

Launching an AI Data Service Platform and Combining Web3 with Decentralized Networks

Colin: When did you start considering an AI-focused service, and what’s the progress?

Zac: In 2017, we began in payments; now, we’re launching an AI data service. Key areas include data models, algorithms, enhanced AI agents, and data quality. For instance, if you compare ChatGPT and Llama on routine tasks, they’re competitive. This pushes demand for quality data optimization.

Our AI data service leverages crypto’s decentralized traits, allowing users to participate in data training through unique methods like “blind boxes” for parameter adjustments. It’s a natural synergy of Web3’s decentralization with AI data training.

Colin: How many people are on this AI project, and is it self-funded?

Zac: Yes, our project includes several key modules. The first is a browser plugin for social media analysis, mainly for Twitter. Our second module is a decentralized data tagging and annotation product that also enables traditional tagging companies to upload and train datasets. The third module is a data marketplace, similar to Hugging Face, and the fourth module is an omnichain Layer 1.

Our funding approach is shaped by 2017’s lessons: attracting users through product value rather than external funding.

Integrating AI Data Products with Crypto

Colin: How will your AI data product integrate with crypto?

Zac: Our primary customers are traditional AI companies, much like our initial payment clients, including B2B businesses in AI and healthcare. Most don’t use crypto directly. Payment options range from fiat to stablecoins, and we handle conversions for our crypto-native users who perform the data training.

A portion of our revenue flows back to the foundation account, supporting the project and allowing value capture through AIFX (currently FX token) burning. Our target clients are traditional B2B companies, while our data training contributors are crypto-savvy users who prefer digital payments.

Business Model of the AI Data Platform and Collaboration with Traditional Companies

Colin: I understand you have flexible payment options?

Zac: Yes. An AI company could pay us in fiat or stablecoins, which we’d convert to pay data taggers in stablecoin or other tokens, for example. A second scenario involves the browser plugin for social media analysis, with crypto project clients using their tokens for compensation to promote jicirculation.

We want users to see us as an AI data service company where crypto is just one payment method.

Colin: And I hear your platform is already generating revenue?

Zac: Yes, we have about 25,000 active users analyzing social media data, particularly sentiment analysis, and event-related content. Our user base is mainly focused on social media analysis tasks, with each able to initiate their own tasks on the platform.

We’re also preparing our B2B data platform for AI and healthcare clients, to be showcased next week at the Singapore Fintech Festival. Our users prioritize task types, ranging from sentiment analysis one month to tagging medical images next.

Future Roadmap and Cross-Chain Technology

Colin: What does your roadmap look like? You mentioned launching a testnet — what’s the overall plan for the next year?

Zac: Sure, we’ll be focusing on several key areas. First, we’ve released a browser plugin geared toward social media data analysis for AI, particularly relevant to the crypto community. We also have a data annotation platform for B2B clients, specifically targeting AI and healthcare companies. Additionally, we plan to launch a data marketplace that will mainly serve AI analysis companies.

Our roadmap includes several main objectives:

1. Deepening partnerships with AI companies, targeting key collaborators like Hugging Face, NVIDIA, and Google. This is currently our top priority.

2. Bringing these partnerships and data opportunities effectively to the Web3 community, especially users previously active in game ecosystems (such as Axie Infinity), encouraging them to transition and take on tasks on our platform.

3. Developing our cross-chain Layer 1 blockchain technology to support multiple chains such as Base, Cosmos, and BSC. Our goal is for users to access our platform seamlessly, regardless of their chain. We believe the future trend is for cross-chain transactions to happen in the background, allowing users a smooth and unified experience without needing to consciously navigate cross-chain mechanics. This aligns with our aim to enhance user experience within the crypto ecosystem.

The Southeast Asian Market, Startup Atmosphere, and Workforce Potential

Colin: Your Southeast Asia background, especially early work in Indonesia, must be helpful in your AI data annotation. There’s a young workforce there, and some might even be drawn from play-to-earn games like Axie Infinity, right?

Zac: Exactly. Southeast Asia’s labor cost is low, and early play-to-earn games like Axie Infinity gained huge traction in the Philippines and Indonesia. We plan to kick off a series of in-person events in Southeast Asia, from university roadshows to general outreach, after February’s Chinese New Year.

Colin: And are you connected with other Southeast Asian crypto entrepreneurs?

Zac: Yes, frequently. Our international team includes many with Southeast Asian backgrounds, as well as some Western colleagues. I often think of Southeast Asia in two parts: Singapore, which hosts many top projects and offers clear regulation, much like Hong Kong. I have a bit of a bias, but I think Singapore is a great gathering place for quality projects.

Southeast Asia is emerging as a production market in Web3 rather than just a consumer market, and I’m very optimistic about its potential.

$FX will be upgraded to $PUNDIAI at a 100:1 conversion ratio

The Pundi AI team has announced that they plan to upgrade its $FX token to $PUNDIAI at a 100:1 conversion ratio on February 25th. On the Pundi AIFX Omnilayer (formerly known as f(x)Core), $FX token holders will have their tokens automatically upgraded, with staked tokens continuing to generate rewards after the conversion. For $FX holders on Base and Ethereum networks, a manual upgrade will be required, or tokens can be bridged back to the Pundi AIFX Omnilayer for automatic conversion. Participating centralized exchanges will be announced soon. Currently, $FX is traded on Upbit, Coinbase, Bithumb, Kucoin, Gate.io, and others.

Holders will have three years to complete the upgrade, with the new $PUNDIAI tokens being unlocked and no additional tokens minted. To incentivize participation, MarginX and Baklava Space will offer staking rewards for $PUNDIAI.

What is $PUNDIAI? What new narratives and product iterations will it bring?

What is $PUNDIAI?

$PUNDIAI is the new token of the Pundi AI platform, replacing the existing $FX token at a 100:1 conversion ratio and becoming the native token of the Pundi AIFX Omnilayer. As the core of the ecosystem, $PUNDIAI will primarily be used to incentivize participants, including data contributors and validator nodes, while also supporting payment and governance functionalities. Users can utilize $PUNDIAI to pay for data annotation and analysis tasks and participate in decentralized governance. Additionally, $PUNDIAI will feature a ve-staking model, enabling holders to gain voting power and earn rewards through staking, further enhancing community engagement and participation.

New Narrative

With the launch of $PUNDIAI, Pundi AI is introducing a new narrative focused on “data democratization,” “full industry chain integration,” and “AI-driven decentralized economy.” Through the Pundi AI platform, users worldwide can participate in data production, management, and sharing, addressing existing issues of data monopolization and granting users true ownership and control over their data and its associated rewards.

Moreover, Pundi AI will achieve full industry chain integration, offering developers a one-stop solution. From purchasing data and training AI agents to launching AI agents and their tokens and providing liquidity for those tokens, developers can complete all key steps within the Pundi AI ecosystem. This streamlines processes, improves efficiency, and lowers the barrier to entry.

Pundi AI will also accelerate the iteration of AI professionals through its “Tag-to-Earn” model, attracting more participants to the AI industry. The platform provides opportunities for individuals and teams to engage in data annotation and validation while employing a highly efficient incentive mechanism. This allows contributors to provide high-quality data to AI enterprises, helping AI agents achieve more efficient functionalities and services. Pundi AI aims to build an open and inclusive ecosystem through decentralization, making data production, distribution, and application more efficient and transparent while driving innovation and vitality across the global AI industry.

New Product Iterations

To complement the release of $PUNDIAI, Pundi AI will roll out a series of innovative products, including an AI Data Marketplace, AI MM Agent, and a Decentralized Data Task Platform. The AI Data Marketplace will provide high-quality, verified datasets for AI companies and developers, enabling efficient model training. The AI MM Agent will dynamically adjust liquidity pool price ranges, capturing value during market fluctuations while optimizing trading experiences.

The Decentralized Data Task Platform will implement the “Tag-to-Earn” model, enabling users to participate in data annotation, validation, and analysis tasks while earning $PUNDIAI as rewards. Additionally, the platform plans to launch cross-chain data bridging tools to enable efficient interaction of tokens and data, offering users a more seamless experience. These new features will drive the growth of the Pundi AI ecosystem, further solidifying its position in the decentralized AI data economy.

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