Blockchain investment firm Sanctor Capital has raised $20 million to fund new cryptocurrency projects, providing the latest evidence that venture capital continues to flood the market.
Sanctor said Tuesday that the investment fund will be used to launch projects in some of the most popular cryptocurrency sectors, including DeFi, GameFi, and cross-chain infrastructure development. In addition to funding companies early on, Sanctor will also provide guidance to blockchain founders on how to launch and scale their products.
DeFi, which stands for decentralized finance, has become one of the most valuable cryptocurrency industries with a total value of more than $245 billion. GameFi, meanwhile, refers to financing games using DeFi and non-financial tokens, or NFTs. Projects such as Axie Infinity and Decentraland have achieved tremendous success as pioneers in GameFi. Facebook’s decision to rename itself Meta and build its own “metaverse” also draws attention to the virtual gaming economy.
When asked about the scoring criteria for selecting companies for funding, Han Kao, CEO of Sanctor Capital, highlighted “dozens of factors,” including the team’s skills and experience, and whether their vision aligns with Sanctor’s vision for the industry in the next five to five years. Decade.
He also described GameFi as one of the best opportunities for mass adoption of blockchain technology. “For us, GameFi can be the catalyst for the long-awaited ‘mass adoption’ that we’ve all been looking for as cryptocurrencies for a long time,” Kao said, adding:
“Hundreds of millions of players from all over the world, especially from emerging economies like [Southeast Asia and [Latin America], are connecting and interacting with the existing blockchain economy through gaming, lending, lending and trading. Providing non-bank banking services, but also transforming the global business economy At the same time training all participants in financial competence.
Sanctor isn’t the only investor in GameFi. Huobi Group, the operator behind one of the world’s largest cryptocurrency exchanges, recently launched a $10 million fund to invest in GameFi’s early ventures.
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From Silicon Valley to Singapore, venture capital is investing in cryptocurrency and blockchain. According to data provider PitchDeck, venture capital funds alone this year have pledged up to $17 billion to startups focused on cryptocurrency and blockchain. By comparison, in 2020, venture capital investments in cryptocurrency amounted to just over $5 billion.