Solana invests $100M in South Korean web3 firms

Amidst recent volatility in the crypto market, users and investors remain steadfast in their commitment to the sector.

Solana is the most recent person to inject funds into the system. Solana Ventures and Solana Foundation have established a $100 million investment and grant fund to finance South Korean web3 entrepreneurs, according to Johnny Lee, general manager of games at Solana Labs. The fund will concentrate on South Korean gaming studios, GameFi, NFTs, and DeFi.

In addition to the venture arm's capital pool, the fund is supported by funds from the Solana community treasury, according to Austin Federa, head of communications at Solana Labs.

"A significant percentage of the Korean gaming industry is transitioning to web3," Lee stated. There is a wide range of project sizes and team sizes, therefore some of [our investments] will consist of venture-sized checks.

solana invest

Lee stated that gaming and non-fungible tokens account for the majority of Solana's business in South Korea, making them a perfect fit for web3.

There have been numerous criticisms in the past regarding play-to-earn games like Axie Infinity, which exist solely for users to gain money and not for enjoyment. In the past six months, a number of gaming firms have concentrated on enhancing gameplay in an effort to broaden their audience beyond crypto-native gamers.

In the second half of 2022, Lee forecasts that there will be an increase in the number of "high-quality and entertaining" games appearing on the Solana blockchain. He stated that these games have the ability to change the impression that play-to-earn games are not entertaining.

"We are optimistic that this will soon change."

Long-term, Lee believes web3 games will be embraced at the same rate as free-to-play mobile games. "Gamers and developers pushed back heavily against web3," he remarked.

He noted that due to the rapid expansion of the web3 business, the deadlines are greatly shortened.

"Free-to-play adoption likely took eight years, so if we estimate it will take four years for web3 games to become the main business model, I'm comfortable with that."

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