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.
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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.
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.
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But the South Korean law prohibiting crypto and monetary rewards from games might prevent domestic companies from launching blockchain-based games in the country.
Denis is a passionate writer and editor and he’s been writing in finance industry for almost 6 years.
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