Solana (SOL) has createdFund to fund cryptocurrency projects throughout the country, valued at $100Million DeFi and gaming are the main beneficiaries of this fund. The fund will also support projects that were built using the Terra network following the devastating crash.
It caused much pain within the crypto community when Terra Network collapsed. Its result was one: the South Korean government set up new measures to inspect 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.
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Solana Ventures and Solana Foundation are the two major players in seed grants and investment across Web 3 verticals. Their focus will be on South Korean games development projects. Solana will be competing with smart contract platforms and Avalanche in this funding effort. They are interested in winning Korean crypto developers.
The recent crash has made it impossible to predict the return of Terra developers. But as the Solana Foundation noted, the developers shouldn’t be blamed for the Terra network crash. Jonny B. Lee was the general manager for the foundation.
Solana aims to consolidate its position in the Gaming Sector
Solana has one goal: to make gaming blockchain a leader. This company has already invested in gaming multiple times since 2017.
Lightspeed Ventures was one such investor. FTX also helped to create a $100M gaming fund. Solana and Griffin also collaborate with Forte gaming companies. They created a fund worth $150 million to support blockchain gaming.
Solana, along with others, anticipate that South Korea’s stems will soon be a center for NFT and metaverse developments. This is because the government of South Korea supports operations in the sector. The government pledged $187 million to build a Metaverse ecosystem that will facilitate digital content creation and corporate operations in the country.
The new fund will be used by So Solana Foundation to boost interest in GameFi/DeFi in South Korea. Solana may also fund ecosystem growth to address network instability which has prevented its operation from 2021.
Many companies compete to be the top platform in South Korea. A lot of these platforms provide access to DeFi and NFTs. Klaytn Layer One blockchain and Upbit are examples of these platforms. Upbit, South Korea’s biggest exchange with NFT market access is also the most popular. Klaytn also controls KLAYswap which is a DeFi platform worth $274 million TVL.
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However, South Korean laws that prohibit crypto- and monetary prizes from gaming might hinder domestic firms from creating blockchain-based games.
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