Solana will put $100 million into South Korea’s growing Web3 business. The popular layer-one blockchain plans to put most of this money into South Korean companies that make video games based on blockchain.
TechCrunch says that this $100 million fund will be run by Solana Ventures and the Solana Foundation. Most of the money for this comes from Solana Labs’ community fund.
Even though the founders of Solana say they are involved in all parts of Web3 in South Korea, most of this funding will go to blockchain gaming projects. Solana didn’t say which companies it has in mind, but it did say that NFTs, play-to-earn games, and the metaverse are high on its list.
An executive at Solana Labs named Johnny Lee told TechCrunch that a lot of South Koreans already use Solana’s blockchain to play games and trade NFTs. He also said that a “big chunk” of the country’s video game business is “going to Web3.” With this $100 million investment, Lee wants to take advantage of this trend and get developers interested in the Solana ecosystem.
CoinDesk says that the South Korean video game market is worth about $15 billion. Analysts say that the value of the global gaming industry is between $200 billion and $300 billion.
Games that use cryptocurrency bring in billions of dollars.
Solana has shown a lot of interest in the video game business in South Korea. In fact, Solana Labs worked out a deal with Krafton, which is one of the biggest game companies in the country.
This year, Krafton said that it was working with the Solana blockchain to add NFTs to its popular game PUBG. PUBG is the second most downloaded battle royale game in the world, after Fortnite.
South Korea may be of interest to Solana because it has made a lot of investments in the metaverse and has a strong video game industry. Rarity Sniper said that the South Korean government plans to put $186,7 million into the country’s metaverse industry. Leaders think that this investment will make the Web3 industry more innovative and create a lot of tech jobs.
Many of South Korea’s most well-known businesses are also putting a lot of money into Web3 enterprises. Samsung and Hyundai, two of the largest companies in South Korea, have tried out the metaverse or NFTs in the past.
Even though blockchain investors want to be in South Korea, it is not the only country that gets money for Web3 gaming. Sony and LEGO, for example, gave Epic Games $2 billion to build a branch of its business called “metaverse.” The Japanese studio Akatsuki has also promised $20 million to help build Web3.
Some well-known game companies have sold their brands in order to try new things in the metaverse. Square Enix sold the intellectual property for “Tomb Raider” to make $300 million for its blockchain subsidiary.
These huge numbers show that many business leaders are hopeful about the future of Web3 gaming.
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