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Wemade Co., the South Korean video game developer, announced the launch of a $100 million web3 fund in collaboration with Singapore-based investment firm Whampoa Digital.
Promoting web3 adoption
In a collaborative effort, the two companies formed the Wemade Web3 Fund, dedicated to investing in blockchain gaming projects, particularly focusing on the Middle East region. The fund aims to accelerate the adoption of blockchain technology, as stated in the announcement.
Additionally, Wemade is actively building the Wemix Play Center, a commercial space focused on blockchain gaming, located in the DIFC Innovation Center in Dubai.
As part of the initiative, blockchain gaming entities that receive grants from the fund are expected to establish office spaces within the Wemix Play Center. This strategic move aims to foster cross-collaboration and mentorship between supported companies, according to the announcement.
Aureole Foong, Senior Partner at Whampoa Group, stated in a statement that the partnership will allow them to lead the way into uncharted territories within the digital asset industry, extending beyond their currently established sectors. Additionally, it aims to foster innovation in the Middle East, recognized as one of the fastest growing regions in the Web3 space.
Wemade CEO Henry Chang said in a statement that through its collaboration with Whampoa Digital, a prominent investment firm in Singapore, it aims to exchange valuable knowledge on blockchain technology. He highlighted that both parties are bringing their distinctive expertise to enrich the partnership.
In March, Wemade partnered with Space and Time, a decentralized hybrid transactional database and analytical data warehouse.
The collaboration aimed to improve and expand the infrastructure for blockchain games. Space and Time's platform integrates on-chain and off-chain data within a single trustless environment, optimizing on-chain gaming experiences. Wemade leveraged Space and Time's development toolset to give players greater ownership and control over their digital assets.
Wemade and web3
Last year, Wemade took legal action by filing injunctions against four major local cryptocurrency exchanges – Upbit, Bithumb, Coinone and Korbit – to challenge the delisting of its WEMIX cryptocurrency from those platforms.
The decision to file the injunctions followed announcements by exchanges about WEMIX's imminent delisting, citing reasons such as inaccuracies in circulating supply figures.
Wemade argued that stock exchange decisions were based on vague reasoning, which harmed investors. Despite Wemade's efforts, the Seoul Central District Court dismissed the court order, allowing the exchanges to proceed with the delisting of WEMIX.
In November 2022, major South Korean exchanges including Upbit, Bithumb, Coinone, and Korbit delisted Wemade's WEMIX token, claiming that there was a distribution of more tokens than previously stated.
Wemade's injunction against delisting was dismissed by the Seoul Central District Court. WEMIX lost around 60% of its value in 24 hours and more than 90% in 30 days. This legal dispute highlights the challenges in the cryptocurrency industry, specifically related to listing and delisting from major platforms.
Earlier this year, the South Korean government nft-game-060419030.html” target=”_blank” rel=”noopener”>forbidden nationwide distribution of blockchain-based play-to-earn (P2E) games, including non-fungible token (nft) games, due to concerns about speculation (i.e. gambling). The ban was imposed by South Korean authorities, who cited an incident 15 years ago in which a game rewarded players with gift certificates that led to cash centers outside gaming halls, where players handed out your certificates to get cash.
He nft-games” target=”_blank” rel=”noopener”>prohibition has caused a significant setback to the gaming industry, as South Korean P2E game makers launched blockchain-based games overseas, hoping that the local ban will be lifted. The ban also requires Apple and Google to remove P2E games from their respective app stores.
Since early 2021, the South Korean government has opposed blockchain gaming within its borders.
According to Decrypt, Wemade confirmed that it will not release blockchain-based adaptations of its existing games in Korea.
Still, the chairman of the Korean Game Administration and Classification Committee has shown a welcoming attitude towards blockchain-based games if they do not contain speculative elements. South Korean President Yoon Suk-yeol had promised to abolish the P2E ban in his election campaign, and Wemade's CEO hopes South Korea will lift the P2E ban in 2024.