Algorand GameFi Zone, a UAE-based startup, raised a total of $4.35 million. This tour de force achieved by the company was possible thanks to the intervention of institutional investors. According to professionals, there is therefore every reason to believe that institutional investors have understood the merits of investing in this sector.
Zone raises 4.5 million in total
Zone, the first GameFi ecosystem on the Algorand blockchain, raised $2.35 million in new funding. The financing obtained by the company was possible thanks to institutional investors. Here are a few: DAO Maker, GSR, Altonomy, Enjstarter, SuperLauncher DAO, MH Ventures, ZBS Capital, Tag Ventures and K300 Ventures. In total, the financing obtained was $4.35 million.
“We see Zone as proof that Algorand is the future of GameFi. The market now has a GameFi ecosystem that supports everything, all without sky-high fees that discourage user adoption. Institutional investors can see where the market is moving,” Zone founder Adi Mishra said Tuesday.
A few months ago, in October 2021, Zone had raised $1.6 billion in funding.
GameFi becomes a source of income
Before going any further, it is important to understand what GameFi is. It is a system that combines several elements: decentralized finance, cryptocurrencies and cash earnings. This concept has attracted thousands of investors since its launch. It allows them to generate income, especially since it is an area that is currently booming.
With GameFi, players can also trade NFTs and other items. This mode has allowed NFTs to gain popularity in recent years. Indeed, the market reached a value $41 billion in 2021, according to the company Chainalysis.
Several GameFi games have enjoyed considerable success. This is the case of Axie Infinity which is well known. The concept of this game is simple: players have digital pets that they must raise and then they must organize fights between themselves and other players’ animals. CNBC reported that in the Philippines, the game is so popular that it has become a source of income for hundreds of people.
Zone, the first ecosystem on the Algorand blockchain, has just raised $4.35 billion in funding thanks to the support of several institutional investors who have decided to trust the GameFi sector. The goal is to make this sector more attractive.
Source: The National
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