Web3 Gaming is the latest momentous enterprise in the blockchain industry. One such venture firm, Framework Ventures, has assigned half of its $400 million fund to decentralized gaming.
Framework Ventures, a firm that invests in early-stage blockchain technology companies, has raised funds worth $400M that will go towards investment in blockchain gaming. They will also focus on development of more Web3 startups and Defi industries. About $200M from the fund called ‘FVIII’, will be used for the buildout of Web3 gaming projects. With about $1.4 billion in company assets, Framework Ventures aim to expand their services in the decentralized world.
Popular blockchain-based games include Axie Infinity which is an NFT-based online game developed by Sky Mavis. With over 8.3 million players, minting Ethereum based crypto and NFTs known as Axies, the game has hit a valuation of about $30 billion, fully diluted. As play-to-earn (P2E) games bourgeon in the multiverse of Metaverses, Framework Ventures too has decided to jump on the bandwagon and fuel a crypto-based economy.
1/ Framework Ventures has raised $400 million for our third crypto fund, dubbed “FVIII”, bringing our total AUM over $1.4 billion.
— Framework Ventures (@hiFramework) April 19, 2022
Approximately half, or $200 million, is earmarked for the rapidly growing blockchain gaming space.@business:https://t.co/Eg6mBaWJ70
Similarly, a globally leading cryptocurrency exchange, KuCoin had recently raised a $100 million fund for development in Web3. Even with Web3 projects inviting a lot of questions relating to regulatory procedures and security practices, companies are not deterred from investing rather large sums of money to accelerate the progression of their businesses in the crypto space.
Blockchain-based 3D open world games in the Metaverse have also contributed to popular celebrities like Justin Bieber and Snoop Dogg taking initiative to invest. Despite being a billion-dollar industry, there are few to actually address security concerns over private consumption of crypto. With millions of players getting hacked in Web3 games, and over billions of dollars being robbed in a matter of seconds – it is surprising how companies do not give much thought over information security and development of robust frameworks that would work to shield players and consumers against such breaches. Digital asset consumption may be skyrocketing as Web3 continues to flourish, but so does the likelihood of getting pillaged under weak engineering and financial defences. No doubt, there is an immediate need of a strong governing structure to regulate the crypto economy as well as protect private monetary interests.
