Solana Ventures has set up a $100 million fund to help develop the Web3 ecosystem of South Korea. According to the company, the funds will be leveraged across various avenues of tech, including NFTs, gaming, and DeFi.
The rationale behind the US-based company’s decision to venture into the Far East is the fact that South Korea is forecast to become a hotbed for NFT and metaverse developments within the next decade.
Although South Korea’s centralised goal to build out its own decentralised virtual space will predominantly focus on developing digital content and digital corporations, Solana Ventures is hoping for interest in gaming finance (GameFi) to take off. From there, they will be able to leverage government grant money.
That being said, the opportunity to receive subsidies from authorities has already prompted other heavy-hitting domestic and international corporations to enter the space, such as South Korean layer-1 blockchain Klaytn, and crypto exchange Upbit.
In addition to stiff competition, Solana’s goal to become an established vector of blockchain gaming may also come under scrutiny when launching blockchain-based games in the region, as South Korean law currently prohibits games from offering monetary rewards to players, including crypto.
The detriments of such policy have already been observed in the decisions made by unrivalled tech giants Apple and Google, who both withdrew their play-to-earn titles from their Korean stores because players were unable to access the games’ full utilities.
Slightly off course from their primary mission, the funds will also be used to help keep some Terra-based platforms afloat, as in the words of the company’s general manager for games Johnny B. Lee, the Terra developers were not at fault for the token’s downfall last month.