Huobi Ventures, the investment arm of cryptocurrency exchange Huobi, has created a $ 10 million fund to invest in early-stage GameFi projects that combine decentralized finance (DeFi) capabilities with gaming.
The fund will make direct investments in projects that integrate blockchain gaming with DeFi mechanisms. GameFi’s business models allow users to earn dividends through features such as “play-to-earn.”
On August 5, Cointelegraph reported the launch of a $ 100 million fund from Huobi Ventures dedicated to DeFi projects focused on asset management. Projects selected for Huobi’s investment will receive funding and support from the Huobi Group, its incubator program, Huobi X Center and Huobi Eco Chain (HECO).
In addition, the companies and projects involved will get Huobi’s support in terms of PR, financial and legal advice, technical support for implementation and commercial assistance.
In a comment to Cointelegraph, Huobi Ventures director Unica Yin said the play-to-earn model has seen astronomical growth:
“We believe blockchain technology has the potential to revolutionize business models in the gaming industry in the future and play a central role in the next generation of video games.”
So far, Huobi Ventures has launched three separate funds dedicated to blockchain technology, HECO Ecology and non-fungible tokens (NFT). Yin hopes the investment fund will help develop high-impact GameFi projects.
“We will provide support and resources to help these projects expand and benefit from the Huobi Group ecosystem,” he explained.
As the play-to-earn model in DeFi gaming continues to take hold, the NFT-centric gaming community Crypto Gaming United raised $ 5 million in a seed funding round overcrowded with investors.
On Thursday, blockchain gamification platform DeFi Land revealed a $ 4.1 million investment to launch a new DeFi game on the Solana blockchain.
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