Binance Smart Chain, one of the most popular smart contract platforms on the blockchain, has partnered with Animoca Brands, the operator and investor of multiple NFT-based games, to establish a $200 million gamefi (gaming financialization) incubation program. The two organizations will each invest $100 million to help fund and facilitate the creation of new gaming experiences on the Binance Smart Chain.
Gamefi is backed by Binance Smart Chain and Animoca
Binance Smart Chain has released a new tool to encourage the creation of new games on its platform. The smart contract chain’s acceleration and investing section have partnered with Animoca Brands, one of the most well-known metaverse gaming companies, to launch a $200 million gaming incubation fund. On top of the Binance Smart Chain, each of the stakeholders will invest $100 million in gaming-related businesses.
According to Yat Siu, Executive Chairman and Co-Founder of Animoca Brands, establishing these enterprises from the ground up is challenging and requires a combination of things to be successful. Siu had this to say about it:
“Early Gamefi companies require capital to develop their products, as well as industry experience in open-world gameplay and tokenomics, as well as networking possibilities in the blockchain gaming and open metaverse.”
According to Gwendolyn Regina, Investment Director at Binance Smart Chain, Animoca Brands’ experience in establishing and maintaining initiatives like The Sandbox, a metaverse-based gaming experience, could help these newcomers establish a foothold in the highly congested blockchain gaming market.
Firms that make investments Binance is just one of several projects that are investing heavily in metaverse-based and crypto gaming activities. These funds will come from the exchange’s $1 billion expansion fund, which was formed earlier this year to help incubate more enterprises on top of the BSC network.
There have been several companies and exchanges that have entered the metaverse market. Kucoin, an Asian exchange, is one of them, has announced a $100 million metaverse fund to assist emerging metaverse enterprises in developing their platforms. Two major publications that illustrate the potential opportunity that early adopters might catch within this newly found industry have validated the entire metaverse sector.
Grayscale, which identified the metaverse as one-trillion-dollar investment potential, released the first one on November 27. The second is from a Bank of America strategist, who believes the metaverse will be a huge opportunity for the entire crypto industry.