Solana Ventures expects GameFi and DeFi to massively grow in South Korea amid the competition between various firms.
On June 7, Solana Ventures and the Solana Foundation announced the launch of a $100M fund in order to aid various South Korean Solana-based cryptocurrency initiatives. The investment will supposedly concentrate on blockchain gaming, NFT, and DeFi projects in the country.
In fact, South Korea supposedly aims to become a breeding ground for virtual gaming and NFT. For instance, earlier this year, the East Asian nation announced that it would invest more than 223.7 billion won (estimated at $177.1 million) to kickstart the metaverse ecosystem by supporting a number of projects.
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On top of that, as stated by Solana Labs' head of games business development Johnny B. Lee, the fund will also seek to help a number of Terra projects that suffered massive consequences from the Cosmos-based protocol’s fall.
On June 8, Solana’s Lee also implied that developers weren’t responsible for what happened on Terra’s network as in the end they were also “left in the lurch.”
Moreover, the Solana Foundation believes that GameFi and DeFi will grow and eventually reach their peak in South Korea. This is displayed by the fact that a number of startup companies are competing more and more to receive such funds.
However, the competition in the country is very high as a number of platforms, including South-Korean crypto exchange Upbit and open-source public blockchain dubbed Klayth Layer-1, have already introduced South Koreans to non-fungible tokens (NFTs) and decentralized finance (DeFi).
In addition, the fact that the government has prohibited gaming companies to give away various rewards that have a definitive monetary value in the country might cause some challenges for firms seeking to establish blockchain technology-based games.
Interestingly enough, crypto-related funds have been on the rise for many months now. For instance, back in May, a decentralized blockchain dubbed Aurora partnered up with Proximity Labs to initiate a token allocation estimated at $90 million in order to boost DeFi development.
More to that, earlier in June, the VC company Binance stated that it successfully closed down its recently fired up $500M fund to support a number of projects in exploring the use cases of crypto and driving the implementation of blockchain and Web3 technologies.
According to statistics, Solana (SOL) is currently trading at $38.96, down 0.69% in the last 24 hours.
