Solana has today announced the creation of a $100 million fund to support the development of blockchain gaming, DeFi projects, and non-fungible tokens (NFTs) in South Korea.
Solana Ventures and Solana Foundation, two divisions of Solana Labs, established the new fund.
In addition to providing support for Solana-powered projects, the fund is also focused on providing sufficient support for some Terra-backed projects to continue operating.
still returning to earth
The Luna accident in May had a significant impact on projects built on Terra.
In an interview with TechCrunch, Solana’s Head of Games BD Johnny B. Lee stated that South Korea is a promising market for Web3 development.
“A large part of Korea’s gaming industry is moving to web3… we want to be flexible; there is a wide range of project size, team size, so there will be some (our investments) enterprise size checks.
Regarding the goal of keeping Terra-backed projects afloat, Lee remarked that developers are also prone to collapse and did nothing wrong.
The heat in the GameFi market is said to have intensified in mid-2021, when the NFT game Axe Infinity was an unexpected success.
With the utility token AXS, the digital currency that accompanies AXS, things have settled down, steadily increasing in price, bringing the game’s market capitalization to nearly $10 billion.
While NFT and DeFi have made progress in new directions, despite the fact that enthusiasm has waned over the past year, the GemFi projects have tended to stagnate due to the lack of truly excellent games since the success of Axi Infinity. Is.
Grit, the latest Fortnite-backed game, has drawn a lot of criticism since its official release this week. Even the top NFT game, Axi Infinity, is struggling to maintain consistent performance as players drop out one by one.
NFT gamers are on the rise
Because the vast majority of NFT gamers are investors rather than hardcore or traditional gamers, their mindset is one of speculation rather than investment.
Regardless of the game project, the willingness to spend the money quickly and get it back fast made publishers predictable of the investment cycle. Game life is short, and developers are unwilling to produce game life long enough to meet player market expectations.
In short, every gaming project is in decline after the hype, but the life cycle of current and past projects is very short.
Despite the ongoing criticism, many game publishers and developers did not give up.
Time and effort has been spent on improvements and upgrades to make blockchain games more approachable, more fun and enjoyable. And this is not only the hope of the blockchain-oriented game studio, but also the vision of Solana.
Lee believes that there will be more “high-quality and fun games” built on the Solana blockchain in the second half of 2022, and these games will change the community’s opinion of P2E gaming. “We believe this is about to change.”
When viewed from an objective standpoint, the NFT games market was driven to flourish at the time, especially among groups and startups creating newer and smaller games.
At the same time, the market for NFT games has attracted increased attention and increased amounts of investment capital. Since the beginning of the year 2022, huge amounts of dollars have been invested in the GameFi sector.
The information that has come out so far is not complete.
Because some investment funds are investing in various GameFi initiatives and will continue to do so, these funds have not officially released any information about their participation.
Although Solana is a firm believer in the long-term development potential of Web3 games, Lee has emphasized that additional time is needed before the game can be widely adopted.
However, because the web3 sector is expanding at such a rapid rate, the time frame has been greatly shortened.