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). The fund also supports some projects built in the Terra network after the terrible collapse.
The collapse of the Terra Network caused a lot of pain to the crypto community. One of its results was that the South Korean government suddenly took action to audit cryptocurrency exchanges.
According to the report, up to 280,000 crypto investors in South Korea have lost fortunes due to the fall of UST and LUNA. But many retail investors are trying to hold on to the fortress, however difficult it is.
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The two players providing grants and investments across the Web 3 verticals are the Solana Foundation and Solana Ventures. They will mainly focus on South Korean game development projects. This funding effort will put Solana close to competitors such as Avalanche, smart contract platforms and Polygon. These competitors are also interested in defeating Korean crypto developers.
No one knows how many Terra developers will return given the recent glitch. But, as noted by the Solana Foundation, developers cannot be blamed for the failure of the Terra network. This sentiment came from Johnny B. Lee, the fund’s CEO.
Solana aims to strengthen its position in the gaming sector
Solana’s only ambition is to become the leading gaming blockchain, and this foundation will make that possible. The company has invested in games several times since last year.
One such investment was a partnership with Lightspeed Ventures and FTX to launch a $100 million gaming fund. Other collaborations also exist between gaming firms Solana, Griffin, and Forte. Three companies have set up a $150 million fund to facilitate blockchain gaming.
Solana and others expect that trunks in South Korea may soon become the center of development of the metaverse and NFT. The reason is that the government of the country supports the activity of the sector. He pledged $187 million to build the Metaverse ecosystem to promote digital content and corporations in the country.
As such, the Solana Foundation plans to increase interest in GameFi and DeFi in South Korea through a new foundation. In addition, by funding the growth of the ecosystem, Solana can address the persistent network instability that has halted its operation since 2021.
Currently, many companies are competing for the title of the best platform in South Korea. Many platforms offer access to NFTs and DeFi. These platforms include the Upbit exchange and the Klaytn Layer-one blockchain. Upbit is the largest exchange in South Korea with an NFT trading platform. Klaithn also owns KLAYswap, a $274 million TVL DeFi platform.
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But a South Korean law banning crypto and cash rewards for games could prevent local companies from launching blockchain-based games in the country.
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