On April 1, the Fractal crypto gaming marketplace, Twitch co-founder Justin Kan’s latest startup, landed $35 million in seed financing from some of the most prominent crypto and gaming investors. Solana Labs, the people behind Solana (SOL-USD), was included amongst the big names.
While Solana Labs is investing in Fractal, Kan has given the cryptocurrency a big seal of approval. Kan believes that Solana is a much better blockchain protocol than Ethereum (ETH-USD) because of its ability to process transactions faster and at lower costs.
Solana’s crypto price has increased by $1o since the April 1 announcement by Fractal. While it’s nowhere near where it was in November, Fractal’s seed funding shows that Solana delivers the kind of real-world utility that crypto investors are looking for.
SOL-USD is a buy on the news. Here’s why.
Kan makes a compelling argument that people will gravitate to NFT-based games in much the same way they jumped on free-to-play games despite the initial skepticism.
“It’s better for game players, as true ownership of digital assets on a blockchain will let players participate in the success of the game, as well as make the decision to trade out of the assets of a game if they want to move on to something else,” Kan stated on Medium announcing the $35 million seed funding.
As for Solana, Kan and Fractal started with the blockchain because they felt it gave gamers and gaming companies the best user experience available in the crypto world.
Ultimately, the $35 million in funding is confirmation that the blockchain is the future of gaming. Kan believes gaming will bring the next 100 million crypto users to the table.
More importantly, Solana is at the center of this gaming renaissance. It’s going to take time to build into something significant. The $35 million in funding helps Kan and company turn Fractal into a global hub for gamers and game companies.
From where I sit, Solana’s investment potential gets brighter every day. Investors interested in betting on the long-term viability of cryptocurrency, NFTs, and the blockchain, ought to be seriously considering Solana after Fractal’s announcement.
Solana’s utility is real. SOL-USD is headed higher.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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