In a remarkable move, Solana has decided to offer up to $100 million to cryptocurrency startups from South Korea in an attempt to penetrate a developer market still reeling from the collapse of the Terra ecosystem.
Two key players in the Solana ecosystem, Solana Ventures and the Solana Foundation, will create investments and grants to all Web 3 companies. However, the greatest emphasis will be on investing in the cryptocurrency-based game development sector in South Korea.
Solana targets former developers of the Terra ecosystem
This funding effort by Solana automatically puts it in direct competition with Polygon, Avalanche and other smart contracts platforms, as they all target the multitude of South Korean cryptocurrency developers who were left without jobs after the demise of the Terra ecosystem.
It’s unclear how many former developers of the Terra ecosystem will return to it after last May’s incredible crash that wiped out billions of dollars in wealth.
“It’s not just because of the crash of terraUSD and LUNA that developers are questioning Terra 2.0,” said Jaemin Park, director of development at DeSpread, who continued: “But also the popular perception that the chain has the risk of ‘key-person’, as well as doubts as to whether the Terra ecosystem dapps would have any meaningful user base since the fundamental community has almost evaporated.”
Eye on the gaming sector
While Solana’s funding will go to Web 3 projects, it will be particularly focused on helping South Korea-based blockchain game developers, according to Austin Federa, head of communications at the Solana Foundation.
The South Korea-based gaming sector as a whole is valued at over $15 billion in 2021. Therefore, the idea of Solana’s people is to tap at least some of this potential for cryptocurrency-based games as well.
Solana plans to meet with the South Korean developer community in early August.
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