Solana Launches $100M Fund For NFT Projects In South Korea
The Solana Foundation, in collaboration with Solana Ventures, announced the setting up of $100 million funding support. Accordingly, the funding supports the expansion of South Korea’s NFT, DeFi, and Blockchain projects.
Moreover, aside from supporting Solana projects, the funds will also help keep some Terra projects in motion after the collapse of the network in May.
According to the Solana Foundation, developers of the Terra ecosystem are not at fault for the meltdown of the network. Johnny B. Lee, the general manager at Solana Foundation, believes that developers are not responsible for what occurs on the blockchain network.
Commenting in an interview as per Bloomberg’s report, Lee reiterated that Terra developers did nothing wrong. However, the developers are in the dark about the happenings leading to the collapse of the Terra ecosystem.
Solana’s Aim to Solidify its Place
The Solana network aims to lead the way as the top Blockchain platform for the gaming experience. Solana Ventures previously launched a similar gaming fund in partnership with FXT and Lightspeed Ventures in November 2021.
In addition, Solana Ventures also have a $150 million fund after teaming up with Forte and Griffin Gaming in another gaming partnership.
South Korea is now the new kid on the block regarding NFT and Metaverse investment and development. The South Korean government has already pledged $187 million in Metaverse funding to build a unique virtual ecosystem.
Interestingly, the Korean Metaverse is for the growth and development of local content in the digital space in the country. It aims to capture the rich Korean culture in the digital sphere and build digital assets for the country.
Meanwhile, the Solana Foundation hopes for interest in blockchain gaming finance (GameFi) and decentralized finance (DeFi) to soar in South Korea. Several companies will vie for the grant money expected to flow into the projects.
The Growing Competition for Relevance
In the meantime, several South Korean firms are offering NFT as competition to develop the best platform is gaining traction.
One of South Korea’s biggest DeFi platforms, Klaytn Layer-1 Blockchain, has the largest DeFi product in the country. Its DeFi platform, KlaySwap, has $274 million as its total value locked (TVL), as per DeFi Llama.
Furthermore, South Korea’s largest crypto exchange, Upbit, already has a well-developed NFT marketplace for non-fungible tokens.
However, local companies find it challenging to get their blockchain-based games rolling in the country, despite the positive side. This is because the existing law prohibits giving monetary rewards for games. Crypto is part of financial gaming rewards in South Korea.
Due to the regulation, Korean officials compelled Google and Apple to remove play-to-earn games from their Korean stores in December 2021.
Notwithstanding the challenges, NFT trading and decentralized finance are rising on the Solana network. The platform’s leading NFT marketplace, Magic Eden, sits behind OpenSea as the second-largest NFT marketplace in the world.
Magic Eden has an average of 35,526 traders daily and $7.31 million in daily trading volumes, according to DappRadar.