Immutable Announces A $500 Million Fund to Promote the Adoption of Web3 Gaming amid crypto crash and backlash.
As more capital is invested in the field and conventional Web 2.0 gaming studios aim to explore the web3 market, the crypto gaming business is growing in popularity.
According to an interview, Immutable, an Australian web3 gaming company, has proposed the creation of a $500 million developer and venture capital fund, according to Robbie Ferguson, Immutable’s president, and co-founder.
On its layer-2 Ethereum-focused platform, Immutable X, the funds will be utilized to fund projects developing web3 games and NFT-focused startups.
Immutable’s major goal, according to Ferguson, is to enable the next generation of web3 gaming at scale. GameStop, TikTok, OpenSea, and Illuvium, to mention a few, are among the gaming developers and IP holders who have previously built on its platform.
He said, “We see gaming being one of the biggest opportunities in web3 to have ever existed,” “The total addressable market is going to be enormous and much bigger than what gaming is today — a $100 billion industry for in-game items alone.”
According to Ferguson, the total addressable gaming market is growing at a 10% annual rate, implying that the industry’s ownable assets might be worth $1 trillion if movies, TV episodes, and music are included in games.
For future investment opportunities, its fund will partner with other web3 gaming and NFT-focused investors such as BITKRAFT, Animoca Brands, Arrington Capital, Double Peak, AirTree, King River Capital, and GameStop, as well as major gaming companies.
Immutable raised $200 million in a Series C financing headed by Singapore-based Temasek in March, valuing the company at $2.5 billion. Immutable Ventures has so far invested in a few web3 companies, including StarkWare, Stardust, PlanetQuest, and Topology.
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Ferguson explained that the half-billion-dollar sum came from a “mixture of places.” “There’s obviously all our venture partners who are using their balance sheets and VC allocations to come in on these deals, there’s cash-backed on [Immutable’s] balance sheet, and there’s also the foundation’s grants, which are specifically designed for this purpose to incentivize and build the Immutable ecosystem.”
He said, “It’s the perfect time to start really building long-term games that will have true in-game economies that will get a hundred million to a billion players on web3,” “I have a strong conviction that the first hundred million users will come from a [Web 2.0] game. All it takes is a breakout here, and that’s a reasonably sized successful game where NFTs can be used under the hood, completely frictionlessly, and reap the benefits.”
“The main thing is that it takes time to integrate web3 and takes time to build a good game,” Ferguson said. “There’s going to be a huge influx of web3 games in eight to 12 months, and there’s going to be hundreds of Triple-A games over the next few years.”
Ferguson predicts that mid-market gaming firms will break into the web3 sector and be the first to market in the next 24 months. He went on to say that over the following two years, more games will find their way into the web3 environment.
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Christopher is a highly skilled writer who possesses a deep understanding of the interplay between financial markets and technology. His goal in writing is to deliver expert analysis through written content that is easy for readers to comprehend.
With a keen interest in cryptocurrencies and the blockchain industry, he has been among the earliest contributors to the Coin Decimal Crypto Blog.
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