Crypto Biz: Smart money ignores BTC price correction as $800M set to flow into blockchain startups, Dec. 9

Crypto- and blockchain-focused capital raises continue to make headlines as venture funds look to support the emergence of Web 3.0.

Bitcoin’s (BTC) return to sub-$50,000 levels has many market participants fretting over the legitimacy of their favorite price models. For venture capitalists and other smart money investors, the latest decline is nothing but noise. Instead, they see the emergence of an entirely new economy that is transforming business, redefining monetary value and pushing the internet to a new frontier. 

This week’s Crypto Biz newsletter highlights four major funding deals from the world of blockchain. Below is a concise version of the Thursday edition of our newsletter.

10T Holdings plans $500M crypto fund

Earlier this week, equity fund 10T Holdings filed a notice with the United States Securities and Exchange Commission to launch a new $500 million crypto-focused investment fund. The 10T DAE Fund 3.0 has been designed to support mid-to-late-stage companies in the digital asset space. 10T has an excellent track record identifying promising crypto plays, with the likes of Kraken, eToro, Huobi and Ledger already a part of its portfolio.

Binance Smart Chain and Animoca Brands launch $200M GameFi fund

Binance Smart Chain and Animoca Brands have each allocated $100 million to a new development fund focused on the fast-growing GameFi ecosystem. GameFi, which refers to the financialization of gaming, is expected to be one of the biggest trends in crypto in 2022 and beyond. The new fund will focus specifically on projects building on the Binance Smart Chain.

Former Facebook engineers at Mysten Labs raise $36M

Mysten Labs, the research and development firm founded by former Facebook engineers, has raised $36 million from some of crypto’s biggest venture funds, including Andreessen Horowitz, Lightspeed, Coinbase Ventures and Samsung NEXT. If you haven’t heard of Mysten Labs, the infrastructure developer is working on building a Web 3.0 interface, which includes a “next-generation NFT platform for the Metaverse.”

Related: Hong Kong-based Chiron Partners launches $50M Terra fund

Fintech startup Lydia raises $100 million in Series C

Speaking of major funding news, crypto-friendly fintech startup Lydia has concluded a $100-million funding round, bringing its total valuation to over $1 billion. You can think of Lydia as an alternative to the popular Cash App and Venmo peer-to-peer payment services. And much like those platforms, Lydia provides another mobile payment gateway to the cryptocurrency market.

Crypto Biz is a weekly newsletter that provides readers with the latest scoop on the business behind crypto and blockchain. The newsletter is delivered to your inbox every Thursday. Stay informed by subscribing below.

Binance Smart Chain Partners With Animoca Brands in $200 Million Crypto Gaming Incubation Fund

Binance Smart Chain

Binance Smart Chain, one of the leading smart contract platforms in the blockchain market, has partnered with Animoca Brands, operator and investor of several NFT based games, to launch a joint $200 million gamefi (financialization of gaming) incubation program. The two institutions will invest $100 million each to fund and ease the development of new gaming experiences on top of the Binance Smart Chain.

Binance Smart Chain and Animoca Bet on Gamefi

Binance Smart Chain has a new tool to entice the development of new games on top of its platform. The acceleration and investing branch of the smart contract chain has partnered with Animoca Brands, one of the leading metaverse gaming firms, to establish a $200 million gaming incubation fund. Each one of the parties will put $100 million destined to fund projects focused on gaming on top of the Binance Smart Chain.

Establishing these projects from scratch is a difficult thing, according to Executive Chairman and Co-Founder of Animoca Brands Yat Siu, and requires an amalgamation of factors for building a successful project. On this, Siu stated:

Early Gamefi projects require funding to build their products, and need industry expertise for open-world gameplay and tokenomics, as well as networking opportunities to establish growth in the blockchain gaming and open metaverse.

Animoca Brands’ experience in building and operating projects like The Sandbox, a metaverse-based gaming experience, could help these newcomers to establish a foothold in the now crowded blockchain gaming market, according to Gwendolyn Regina, Investment Director at Binance Smart Chain.

Investment Firms Running to the Metaverse

Binance is just the one in a chain of projects that are putting serious money behind metaverse-based and crypto gaming initiatives. These $100 million will come from the $1 billion growth fund that the exchange launched earlier this year to incubate more projects on top of the BSC network.

There have been multiple companies and exchanges entering the metaverse business. One of them is Kucoin, an Asia-based exchange, which launched a $100 million metaverse fund to help young metaverse projects build their platforms. The whole metaverse sector has been vindicated by two important reports that explain the business opportunity that early adopters might catch within this newly identified sector.

The first one, issued on November 27, comes from Grayscale, which identified the metaverse as a one trillion dollar investment opportunity. The second one comes from a Bank of America strategist, who also stated the metaverse would be a massive opportunity for the entire crypto ecosystem.

What do you think about the new $200 million gamefi BSC fund? Tell us in the comments section below.