Binance Smart Chain and Animoca Brands have partnered to launch a $200 million investment program to accelerate and incubate early blockchain gaming startups. The goal is to increase mainstream adoption of blockchain tech.
The new investment program will support GameFi projects. Blockchain games, such as those that use cryptocurrency or nonfungible tokens (NFTs), have taken off this year as the crypto and gaming booms intersect. Animoca Brands recently also raised money at a $2.2 billion valuation.
NFTs use the transparency and security of the digital ledger of blockchain to uniquely identify in-game digital items, which can be sold as limited edition collectibles for higher prices. But crypto can still be complicated as you need special secure digital wallets for tasks such as exchanging currency.
That has slowed blockchain’s acceptance in mainstream circles. Gaming helps reach more mainstream users, as it has seen a boom during the pandemic. But traditional game companies have been slow to adopt blockchain — partly out of environmental concerns, regulation fears, abundant scams, and gamer resistance — in ways that could bring in a larger gaming mass market.