Solana (SUN) has created a $100 million fund to support cryptocurrency projects in the country. The main sectors that will 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 accident.
The Terra Network crash caused a lot of pain in the crypto community. One of its results was that the South Korean government suddenly put in place measures to vet cryptocurrency exchanges.
According to a report, as many as 280,000 crypto investors in South Korea lost fortunes in the crash of UST and LUNA. But, many retail investors are trying to hold on to the strong even though it’s tough.
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The two players generating grants and investment in Web 3 verticals are Solana Foundation and Solana Ventures. They will primarily focus on South Korean game development projects. This funding attempt will put Solana side by side with competitors like Avalanche, smart contract platforms, and Polygon. These competitors are also interested in winning Korean crypto developers.
No one knows how many Terra developers will return, given the recent crash. But as the Solana Foundation pointed out, developers should not be blamed for the collapse of the Terra network. This opinion came from Jonny B. Lee, the general manager of the foundation.
Solana seeks to consolidate its position in the gaming sector
One thing that Solana aims to achieve is to become a top gaming blockchain, and this fund will make that possible. The company has invested several times in games since last year.
One of those investments was his collaboration with Lightspeed Ventures and FTX to launch a $100 million gaming fund. There is also another collaboration between gaming firms Solana, Griffin and Forte. The three companies created a $150 million fund to facilitate blockchain gaming.
Solana and others anticipate that South Korean stems could soon become a hub for metaverse and NFT developments. The reason is that the country’s government supports the operations of the sector. He pledged $187 million to build a Metaverse ecosystem to facilitate digital content and corporations in the country.
So, the Solana Foundation plans to increase interest in GameFi and DeFi in South Korea through the new fund. Additionally, by funding the growth of the ecosystem, Solana could address the ongoing network instability that has halted its network operation since 2021.
Currently, many companies compete to become the best platform in South Korea. Many of the platforms offer access to NFT and DeFi. Such platforms include Upbit Exchange and Klaytn Layer-one blockchain. Upbit is the largest exchange in South Korea with an NFT market. Klaytn also owns KLAYswap, a DeFi platform with $274 million in TVL.
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But South Korea’s law banning crypto and monetary rewards from games could prevent domestic companies from launching blockchain-based games in the country.
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