Kaijudo/WMG

Ray's mother knows about Kaijudo
She seemed pretty insistent about wanting Ray to draw something other than creatures, almost like she knew they existed outside of his imagination, and she seemed strangely worried when he left for his "karate lesson" in episode 3.
 * Note that in class, when Ray stared out the window through his pendant, it showed him the other side of The Veil. Now note that the only time we see Ray's father, it's in a photo... And Ray's hand is blocking out view of his neck. A family heirloom perhaps? Maybe Ray's talent runs in the family... And Ray's father was killed in a Kaijudo duel.
 * Ray's grandpa may know more than he lets on, too... After all, he knows what a Rumbling Terrasaur looks like well enough to make a little origami version of one. And given the timing involved, it's highly unlikely he was copying from Ray's drawing unless he's an absolute master of Origami and can fold an unfamiliar shape without instructions or even seeing someone else's folded version in a very short period of time with absolutely no mistakes.

The Choten will not be satisfied with enslaving an army of creatures.
He'll want to make a few improvements to his assets. And that's how the concept of Evolution will be introduced into this show.

The bully is related to Ray's mother.
Ray's mother's family probably disowned her for marrying a non-white. That would be another reason why he picks on his cousin.