Solana To Support DeFi, NFT, And GameFi In South Korea With A $100M Fund
June 10 2022 - 3:00PM
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Solana (SOL) has created a $100Million fund to support
cryptocurrency projects in the country. The main sectors to benefit
from the fund are DeFi, gaming, and Non-fungible tokens (NFTs).
Also, the fund is to support some projects built on the Terra
network after the terrible crash. The Terra Network crash caused a
lot of pain in the crypto community. One of its results was that
the South Korean government suddenly set up measures to examine
crypto exchanges. According to a report, up to 280,000 crypto
investors in South Korea lost fortunes in the UST & LUNA
plunge. But, many retail investors are trying to hold down the fort
even though it’s difficult. Related Reading | Bitcoin Miner
Revenues Stay Low As Price Decline Continues The two players to
seed grants and investments across Web 3 verticals are Solana
Foundation and Solana Ventures. They will focus mostly on South
Korean game development projects. This funding attempt will place
Solana side by side with competitors such as Avalanche, smart
contract platforms, and Polygon. These competitors are also
interested in winning Korean crypto developers. No one knows the
number of Terra developers that will return, given the recent
crash. But as the Solana Foundation noted, the developers shouldn’t
be blamed for the Terra network crash. This opinion came from Jonny
B. Lee, the general manager of the foundation. Solana Seeks To
solidify Its position in Gaming Sector One thing Solana aims to
achieve is to become a top gaming blockchain, and this fund will
make it happen. The company has invested multiple times into gaming
since last year. One of such investments was its collaboration with
Lightspeed Ventures and FTX to launch a $100M gaming fund. Another
collaboration also exists between Solana, Griffin, and Forte gaming
firms. The three companies created a $150M fund to facilitate
blockchain gaming. Solana and others anticipate that South Korea
stems might soon become a hub for metaverse and NFT developments.
The reason is that the government of the country supports the
operations of the sector. It pledged $187 Million for building a
Metaverse ecosystem to facilitate digital content and corporations
in the country. So Solana Foundation plans to increase interest in
GameFi and DeFi in South Korea through the new fund. Also, by
funding ecosystem growth, Solana might address the continuous
network instability that has stopped its network operation since
2021. Currently, many companies are competing to become the best
platform in South Korea. Many of the platforms offer access to NFTs
and DeFi. Such platforms include Upbit exchange and Klaytn
Layer-one blockchain. Upbit is the largest exchange in South Korea
with an NFT marketplace. Klaytn also owns KLAYswap, a DeFi platform
with $274 million in TVL. Related Reading | Bitcoin Decline
Sees Funding Rates Plunge To Three-Month Lows But the South Korean
law prohibiting crypto and monetary rewards from games might
prevent domestic companies from launching blockchain-based games in
the country. Featured image from Pexels, chart from TradingView.com
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