Web3 Continues to Gain Traction as Tech Giants Invest Heavily
In the latest sign of growing interest in web3, Microsoft has backed Wemade, a South Korean video game developer that has been aggressively exploring blockchain technology in recent years. This investment is part of a larger trend where tech giants are investing heavily in web3 startups.
Wemade Raises $46 Million from Microsoft, Shinhan Asset Management, and Kiwoom Securities
According to a press release by Wemade, the company has raised $46 million from Microsoft, Shinhan Asset Management, and Kiwoom Securities. The investment is being made through the sale of convertible bonds. This marks a significant milestone for Wemade, which has been exploring ways to incorporate blockchain technology into its new titles and offerings.
Wemade’s Blockchain Ambitions
Founded over two decades ago, Wemade is best known for its sleeper hit title "The Legend of Mir," which at one point had more than 200 million signups. In recent years, the company has been actively exploring ways to incorporate blockchain technology into its new titles and offerings. It recently launched its blockchain Wemix3.0 to mainnet and launched a stablecoin and a DeFi platform.
Transforming Everyday Games with Blockchain Technology
Wemade’s goal is to "transform everyday games with blockchain technology and establish its Wemix coin as a key currency in the blockchain gaming space." The company has ambitious plans to introduce a new economy platform called NILE that supports NFTs and DAOs. This move is aimed at creating a more inclusive and decentralized ecosystem for gamers.
Tech Giants Flock to Web3
This investment by Microsoft is part of a larger trend where tech giants are investing heavily in web3 startups. Scores of tech giants, including Google and storied banks, have made series of investments in the web3 space in recent years. Microsoft has also invested $14.8 million in Wemade through the purchase of convertible bonds.
Microsoft’s Web3 Investments
Microsoft operates the Xbox gaming ecosystem and has a significant presence in the gaming industry. Its investment in Wemade is part of its efforts to expand its presence in the web3 space. The company has made similar investments in ConsenSys, the firm behind MetaMask wallet and enterprise solutions such as Infura.
Google Ventures’ Web3 Investments
Google Ventures has also been actively investing in web3 startups. It has backed fraud detection service Sardine, trading app Blockchain.com, and NFT startup YugaLabs.
Microsoft’s Investment Breakdown
According to regulatory filings, Microsoft invested $14.8 million in Wemade through the purchase of convertible bonds. Shinhan Asset Management invested $21.2 million, while Kiwoom Securities invested $10.5 million.
The Future of Gaming
Wemade’s blockchain ambitions and Microsoft’s investment in the company are significant milestones for web3. The gaming industry is expected to undergo a significant transformation with the adoption of blockchain technology. Wemade’s efforts to establish its Wemix coin as a key currency in the blockchain gaming space will be closely watched by investors and gamers alike.
Conclusion
Microsoft’s backing of Wemade marks another significant milestone in the growing trend of tech giants investing heavily in web3 startups. The company’s ambitious plans to transform everyday games with blockchain technology will be closely watched by investors and gamers alike.