A few of blockchain’s largest enterprise corporations have spearheaded a brand new funding fund devoted to Net 3 gaming, also referred to as GameFi, doubtlessly opening the door to a extremely profitable trade that sees cryptocurrency and blockchain merging with the normal gaming sector.
On Friday, Solana Ventures, Lightspeed Enterprise Companions and derivatives trade FTX introduced the launch of a $100 million GameFi ecosystem fund. The funds will probably be used to spend money on gaming studios, expertise corporations and different tasks “on the intersection of blockchain and gaming,” the businesses stated.
Lightspeed Enterprise Companions govt Amy Wu described gaming as an enormous alternative to “carry the subsequent billion customers to Net 3,” a broad idea that refers to a extra decentralized web. Lightspeed has already invested over $300 million into late-stage gaming and cryptocurrency corporations, together with Epic Video games, Wintermute, FTX and Offchain Labs.
Though estimates differ, the worldwide gaming market is claimed to generate effectively over $100 billion in annual income — a determine that’s anticipated to cross $200 billion within the subsequent two years, according to gaming information supplier Newzoo.
Blockchain expertise and cryptocurrency are more and more merging with the gaming panorama, creating new consumer experiences and types of monetization. This intersection has given rise to GameFi, a broad time period that describes the financialization of gaming via DeFi and nonfungible tokens.
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GameFi can also be gaining traction as an idea inside the so-called “metaverse,” which describes a futuristic model of the web comprised of digital actuality, social media and enterprise. A number of funding funds have allotted capital to this rising vertical, together with Sanctor Capital, which not too long ago raised $20 million, and Huobi Group, which launched a $10 million fund.
When requested concerning the long-term worth proposition of the metaverse idea, Amy Wu instructed Cointelegraph that “the metaverse is a possible digital world the place individuals construct identification, fame, make associates, play, and transact in.” She additional defined:
“If it turns into even a fraction as significant as our offline lives, it’s extremely invaluable. Therefore why Net 2 corporations like Meta and native Net 3companies alike are attempting to construct this. Individuals spend hours a day in video games like Fornite and Roblox, so I consider the metaverse will probably be born out of a social sport.”