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Developers are always experimenting with new methods to integrate digital assets with gameplay, and investors are taking note.
Huobi Ventures, the dedicated investment arm of the Huobi bitcoin exchange, has established a $10 million fund to invest in early-stage GameFi businesses that integrate decentralised financial (DeFi) technologies with gaming.
The fund will invest directly in companies that combine blockchain gaming with DeFi methods. The GameFi business concepts enable users to earn dividends via features such as “play to earn.”
On August 5, Cointelegraph revealed that Huobi Ventures had allocated a $100 million fund to DeFi initiatives focused on asset management. Huobi Group, its incubator programme, Huobi X Center, and Huobi Eco Chain will fund and support the projects selected for investment (HECO).
Huobi will also provide PR help, financial and legal guidance, technical support for project deployment, and commercial aid to the investee firms and projects.
Huobi Ventures director Unica Yin told Cointelegraph that the gaming industry’s play-to-earn model has seen exponential growth:
“We think that going forward, blockchain technology has the potential to revolutionize gaming business models and will play a core role in the next generation of games.”
Huobi Ventures has launched three separate funds to date dedicated to blockchain technology, HECO Ecology, and nonfungible tokens (NFT). Yin hopes that Huobi’s investment fund will help build impactful GameFi projects.
“We will provide support and resources to help these projects scale and take advantage of Huobi Group’s ecosystem,” she said.
As the play-to-earn paradigm in DeFi gaming gains traction, Crypto Gaming United, an NFT-focused gaming community, raised $5 million in early fundraising, which was attended by an overcrowded investor group.
DeFi Land, a blockchain gamification platform, announced a $4.1 million investment on Thursday to develop a new DeFi game on the Solana blockchain.