Singapore-based technology services and consulting provider Cake DeFi is launching a $100 million fund focused exclusively on Web3, Metaverse and NFT efforts.
The fund aims to aggressively support startups across these spaces and to grow the nascent ecosystem.
Speaking with CoinDesk, Cake DeFi CEO Dr, Julian Hosp highlighted the fund’s goal:cake defi
“We’re a [business to consumer] platform that’s really centered around providing easy cash flow for our customers,” he added, “So the thesis for the fund is mainly to look for projects and companies where we can have a symbiosis.”
More Support for New Tech
Officially called “Cake DeFi Ventures” (CDV), the fund will focus on backing early-stage initiatives across diverse areas including Web3, NFT space, metaverse, game and eSports, and fintech. The eligible targets are the crypto initiatives that meet the core criteria of company values.
Led by CEO Dr. Julian Hosp and CTO U-Zyn Chua, Cake DeFi is a one-stop decentralized finance platform that offers customers the opportunities to generate high returns through a wide range of investment services like liquidity mining, staking, lending, among other services.
Apart from money, crypto startups can get access to other benefits as well.
“Portfolio companies have the opportunity to access numerous Cake products, connections, users, resources, and expertise within the global blockchain industry,” as noted in the announcement.
As part of the strategy, new investment partner Nicholas Khoo will join forces to lead the new CV arm.
According to a press release, Cake DeFi noted that prior to the CDV’s launch, the team was already in conversations with many startups across Southeast Asia, Europe, and the United States at various stages of development.
“As an extension of our multiple blockchains support and having built up an R&D arm with cryptography deep tech capability, investing in companies that bring synergies to Cake DeFi’s core business will allow us to enhance and broaden our Web3 offerings,” Cake DeFi co-founder U-Zyn Chua said.
More Investment Coming
BIg funds are pouring money into crypto investment as the government is getting more engaged to the space. Regulators have also taken significant steps to encourage the capital market while properly regulating the space.
However, when the NFT space continues to receive bullish news related to funding, the NFT marketplace has seen significant decline in terms of trading volume.
Following an incredible year with a trade value in excess of billion dollars, the NFT trading activity on OpenSea has recently shown a clear sign of collapse.
According to Delphi Digital data, the trading volume on OpenSea has dropped by more than 70% to roughly $70 million. However, the number of active users has surged.
A Dynamic Market
NFT trading volume on the OpenSea marketplace has been declining in recent weeks, owing largely to a series of collapses that resulted in consumers losing millions of dollars in digital assets.
Due to a difficulty with the market’s user interface design around the end of January, some people took advantage of this to buy NFTs at a discount to their genuine price.
According to OpenSea, problems develop when users generate listings for their NFTs and then transfer the listed NFTs to another wallet without unlisting them.
To resolve this issue, OpenSea has updated its smart contract, prompting all users to move their Ethereum listings to the new smart contract.
However, it later led to a phishing attack on the platform, with some speculating that the issue was caused by the transition process.
While there is no specific reason for the drop in NFT trading volume, many believe the market’s vulnerability may have dampened the enthusiasm of some potential investors. Political issues are also key factor since they move people’s attention to digital payments, value storing, and fundraising.
Google Trends data previously revealed a drop in searches for NFT and metaverse. When compared to the peak in late January, NFT search volume has dropped by 60 to 70%. The majority of interest in NFT originates from the United States and Japan.