There’s a huge latent market for play-to-earn games, says Vance Spencer, the co-founder of Framework Ventures. He believes that gaming startups remain a popular investment because three billion people in the world play games and half a billion people make less than $5 a day but have an internet connection.
Last week, Halliday raised a $6 million seed round led by a16z crypto, with participation from Hashed, SV Angel, Immersion Partners, and Sabrina Hahn among others. This shows that despite the downturn in the global crypto market, investors are still very much keen on the gaming ecosystem. This may be because games are starting to look increasingly like societies.
Moreover, blockchain technology is speeding up the evolution of games into digital societies by assigning real-world value to digital assets and inalienable ownership rights to online citizens. It will evolve into a digital civilization where the chain codifies ownership. Crypto funding, outside of gaming, has been relatively quieter than usual. But investors are committed to startups building in the space.
It should be noted that Brevan Howard Asset Management raised $1 billion from institutional investors to launch the largest crypto hedge fund. This shows that the fund will play a more active role in supporting the development of cryptocurrency startups. And XION Finance secured a $50 million investment commitment from Bahamas-based GEM Digital Limited. It plans to deploy the funds to provide everyday users with the ability to earn high yields, swap assets between multiple chains, and invest in tier one projects.