👀 Why are VCs bullish on Web3 Gaming?

🎣 w3.catch-of-the-week cw49

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Vicktoria Klich & Quinn Wilhelm
December 08, 2023

GMGM and welcome to the 🎣w3.catch-of-the-week, the newsletter that mirrors the Bitcoin journey – constantly growing in value and surprises 😉. It looks like we're in for a green Christmas rather than a white one, as capital continues to flow into the crypto and NFT markets, even though no one has yet asked us, "Hey bro, how do I buy Bitcoin, or is it too late?".

Well, as usual, I'm here to deliver the latest Web3 use cases from brands that are gradually bringing the Web3 world closer. Today, you'll learn:

💸 In which projects the increase in VC money flows
🚗 How Fiat brings Web3 Loyalty to a new level
🤝 And about the latest w3.hub partnership

🐂 Web3 Gaming Bulls
💰 The latest Web3 fundings
🚗 Fiat’s Web3 Approach
🙌 New perks for w3.hub members

💥Why Web3 Gaming is the Next Big Thing

In November 2023, the crypto market witnessed a notable surge, with a 52% increase in funding to crypto firms, reaching $470 million. This upswing signals a rebound in investor confidence, yet it's still a stride away from the peak of over $7 billion during the bull market.

The crypto gaming sector, currently valued at $13 billion (total market cap of all gaming-related tokens), contrasts sharply with Dogecoin's bull run peak of $70 billion market cap. This comparison, highlighted by Alex Becker, underscores the substantial growth potential in Web3 gaming. As the sector awaits broader adoption, its current valuation suggests a significant opportunity for expansion and innovation according to its investors.

VC Investments in Web3 Gaming: Exploring the Trends & Innovations 📈 

Venture capitalists are increasingly focussing on projects that are characterized by innovation and have the potential to change the market. This trend is reflected in the variety of Web3 and games start-ups that are receiving significant funding. Let me introduce you to a few of the latest investments:

Wormhole's Cross-Chain Protocol: With a $225 million investment, Wormhole's technology captivated top investors for its potential to enhance interoperability in the blockchain space.

Rokid's VR Expansion: A $112 million investment underlines the growing interest in virtual reality solutions, with Rokid leading the charge in this sector.

Game Studio Behind Matr1x Fire: Singapore-based NFT gaming company Matr1x has successfully raised $10 million for its mobile gaming venture, notably its flagship product, Matr1x Fire. This recent round of funding is part of a cumulative $20 million the studio has garnered from various crypto VC firms.

Bazooka Tango's Game Development: $5 million funding for 'Shardbound' signifies investor belief in its innovative game concepts and strategic collaboration with Immutable Games.

Intract's Web3 Gaming Platform: A $3 million boost for its engagement solutions, allowing users to earn tokens and NFTs through interactive activities, reflecting the increasing demand for engaging gaming experiences.

Animoca Brands: Leading the Charge 👑

When it comes to Web3 gaming investments, Animoca Brands is a name that instantly comes to mind. As the largest VC investor in this space, they have made more than 340 investments, underlining their significant role in shaping the future of gaming. CEO Robby Yung, a key voice in the industry, shared his bullish outlook on Web3 gaming at our recent w3.pizza event.

If you missed the event but want to know why Robby is so bullish, check out his speech from w3.vision. Animoca Brands' mission is to deliver digital property rights to gamers and internet users worldwide, aiming to create play-to-earn economies and a fairer digital framework.

🌠 The Bigger Picture: Why Web3 Gaming could be the next big Thing

Embracing Web3 in Traditional Gaming: In 2024, more conventional gaming companies are expected to adopt Web3 technology, leading to increased releases of blockchain games. This integration will bring advanced blockchain mechanics into gameplay.

Focus on Accessibility: The complexity of blockchain gaming has been a barrier to its widespread adoption. Improved accessibility and intuitive design for both developers and gamers will be crucial for more adoption.

Macroeconomic Influence: Factors like Bitcoin ETF approvals and growing institutional interest in Bitcoin could create a positive sentiment around blockchain gaming.

The Future of Web3 Gaming

At the w3.fund, we remain confident in the potential of Web3 gaming, as evidenced by our early investment in Angry Dynomites Lab. We believe that ownership is a true game-changer in the industry.

🦖 Angry Dynomites Lab is creating a game that leverages blockchain to introduce fun and unique mechanics, making it accessible to everyone. Even without owning an expensive NFT or paying high gas fees, players can participate and enjoy the game. However, owning an NFT elevates players to significant contributors in the game's economy. Remember to join the waitlist for the next demo here and be part of this exciting venture.

FIAT's Web3 Approach: A New Era of Brand Loyalty? 🤔

FIAT has embarked on a pioneering journey in the Web3 space with the "FIAT Pass," transforming customer engagement and loyalty in the automotive sector. Unlike other car brands like Porsche, Honda, and Mercedes-Benz, FIAT is adopting a unique approach to leverage Web3 technologies for enhanced customer interaction.

What is the FIAT Pass?

👉 Launched in mid November (in the US)

👉 Open-edition free mint

👉 Attracted 55k+ existing and new Fiat customers within 24hrs

👉 Is dynamic and soul-bounded (not tradeable)

👉 Serves as a gateway to the Fiat ecosystem (Discord e.g.)

FIAT's CINQUECENTO Collection: Bridging Digital and Physical

The collection “CINQUECENTO” by FIAT brings together digital art and real-world car utilities. Over 100,000 U.S. customers, already holding the free-to-mint FIAT Pass, now have first access to the CINQUECENTO NFTs. These NFTs offer unique digital and physical benefits linked to FIAT's new car, the FIAT 500e, such as priority access to the release, $150 in credits for on-demand car subscriptions with Free2move, and token-gated access to exclusive FIAT experiences. The digital artwork, created by Stefano Contiero, enhances the ownership experience, blending IRL car accessories with unique digital expressions.

In-Depth Look: FIAT's Web3 Integration

FIAT's Web3 journey is centered around creating a dynamic and evolving customer experience. The FIAT Pass offers a multitude of benefits and experiences, fundamentally changing the traditional customer-brand relationship. FIAT aims to extend the utility of these NFTs beyond mere collectibles, potentially linking them with actual car ownership 😳. This concept opens up a realm of possibilities, such as rewarding sustainable driving habits, on-chain vehicle data storage, and proof of car ownership.

Why did they choose the Web3-Way?

FIAT’s decision to integrate Web3 technology stems from a desire to establish a next-generation loyalty program. By leveraging the capabilities of Web3, FIAT is exploring new avenues for customer data usage, loyalty program scalability, and future-proofing their marketing strategies.

👉 Their focus on creating a ✨community-led brand✨ and developing a direct relationship with customers, even before car ownership, is at the core of this strategy.

The Future of Loyalty Programs: Is FIAT a Blueprint?

FIAT's implementation of Web3 technology could potentially serve as a blueprint for other car manufacturers. Their strategy of combining immediate benefits, like priority car reservations, with long-term engagement opportunities, demonstrates how Web3 can enhance the traditional customer lifecycle in the automotive industry. The success of FIAT's program will depend on its ability to provide real-world utility and to foster a vibrant, engaged community around its brand.

New Partnership: The Outpost 🤝 w3.hub

We're thrilled to announce our partnership with The Outpost in Paris, a leading space for Web3 entrepreneurs and businesses. This collaboration broadens our global reach, providing our members with luxurious networking spaces near Parc Monceau. This partnership enhances the international connections and opportunities for w3.hub members, aligning with our mission to support and unite the global Web3 community.

Vicky & Marvin are Web3-obsessed. That's why they host a weekly podcast featuring updates and cool stuff.

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