VC in Crypto – Web3 Games Best Position to Grab Eye Balls and Investors

August 2, 2022 World Blockchain

Venture capitalists invested approximately $10 billion in startups and companies within the crypto industry despite the recent winter season, data from Galaxy Digital reveals.

Some of the key themes that have still been attracting investors’ money include the metaverse, non-fungible tokens (NFTs), and decentralized games, with the latter possibly becoming the fastest growing segment in the entire ecosystem due to its appealing characteristics to users across the world.

In regards to the prospects of this corner of the crypto industry, Lucas Matney, the crypto editor for TechCrunch, writes: “Gaming does seem like a great consumer beachhead for crypto and I’d expect plenty of these dedicated crypto funds to dump a significant quantity of their funds into studios and platforms pursuing this”.

Some of the most popular gaming tokens including Decentraland (LAND), Axie Infinity (AXS), and The Sandbox have experienced severe losses so far in 2022 while others like ApeCoin (APE) – the native token of the APE ecosystem – are right where they started when the year kicked off.

However, these projects have shown that there is an interest out there for play-to-earn (P2E) initiatives and, even though external forces have shocked the crypto market in the past few months, this does not mean that the prospects of this trend are now less attractive.

With this in mind, investors may be focusing on early-stage projects that offer asymmetrical risk/reward opportunities. For venture capitalists, success is not generally achieved by identifying the best project among all. Instead, they typically spread their eggs in many baskets and offset their losers with the gains produced by the top winners of the portfolio.