Leading players in the blockchain sector have launched a major investment fund that will be used for Web 3 gaming, popularly known as GameFi. This initiative could mark a major step in adopting blockchain and crypto assets into the traditional gaming sector.
The new $100 million investment fund was announced on Friday. The funds will be used to make strategic investments in gaming studios, technology firms and other related projects. A joint statement by the companies noted that the fund would be an “intersection of blockchain and gaming.”
Major growth of the gaming sector
An executive of Lightspeed Venture Partners, Amy Wu, stated that gaming was a major opportunity in the sector. The announcement stated that through this fund, billions of users would transition to Web 3. These figures represent the major gains that the Web 3 platform has enjoyed in recent years.
The global gaming sector is estimated to generate annual revenues of more than $100 billion. This figure is expected to grow to $200 billion over the next two years, showing much potential for firms to tap into.
Lightspeed has invested more than $300 million into gaming platforms such as Epic Games, Offchain labs and FTX.
Blockchain technology is becoming a major concept in the gaming sector, as developers look for innovative ways to boost user experiences and create a new way of monetizing the sector.
GameFi and the Metaverse
The concept of GameFi is fast gaining popularity in the Metaverse. The Metaverse is currently a hot topic in the crypto and blockchain spaces, as it is expected to bring virtual reality closer to people on social media platforms and businesses.
Many firms are now extending into Web 3 and the Metaverse. Microsoft has set aside a development team aimed at bringing the Metaverse closer to the people. Other firms such as Sanctor Capital and Huobi have already launched funds to aid in GameFi development.
Amy Wu also addressed the gains that the Metaverse could help achieve. “If it becomes even a fraction as meaningful as our offline lives, it’s incredibly valuable. Hence, why Web 2 companies like Meta and native Web 3 companies alike are trying to build this.”
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