After the record-breaking investment results that materialized in 2022, the Web3 fundraising landscape that covers play-to-earn (P2E) gaming, non-fungible tokens (NFTs), and the Metaverse has rapidly reversed course and plunged, reflecting overall market trends.
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Per the latest industry data, Web3 funding inflows tumbled from approximately $1.3 billion in January 2022 to barely over $136 million during the same period in 2023, underlining the dramatic pullback in venture capital interest compared to just a year earlier.
Despite the souring backdrop for blockchain-related investments amid the latest crypto winter, not all initiatives are struggling to raise capital. Late last month, Fastex, a SoftConstruct-incubated gaming ecosystem in the Web3 arena, raised $23.2 million through the sale of its cryptocurrency, Fasttoken (FTN).
FTN is an ERC-20 cryptocurrency built on the Ethereum (ETH-USD) network that serves as the utility token for the Fastex economy. The token unlocks all the Web3 products and services hosted within the Fastex ecosystem, including peer-to-peer (P2P) and business-to-consumer (B2C) payment solutions. With the capital, Fastex aims to expand its platform and develop new products to accompany its gaming ecosystem.
Company employees, partners, and selected investors were given an early chance to participate in the private FTN generation events through Fastex’s parent company BetConstruct two months before the initial exchange offering (IEO) sale was opened to the public on January 18. All 10 FTN million tokens offered during the public sale were sold in three days for €0.35 per token.
The funds raised will advance the development of the Fastex ecosystem, which encompasses the Fastex Chain, ftNFT marketplace, Fastex Pay, and the Fastex Verse metaverse. Already, over 100 gaming providers have adopted FTN to power their GameFi titles, providing an accessible on and off-ramp for gamers seeking to enter the Fastex ecosystem.
Transitioning to Rewards for Network Activity
Although originally built atop Ethereum, Fastex will be gradually migrating its entire ecosystem to the recently unveiled Fastex Chain to improve the network’s security. This move will enable FTN to be used for staking and block validation through a new consensus mechanism, Proof of Stake and Activity (PoSA). This patent-pending idea combines network stake and activity to validate blockchain transactions, offering a unique approach to business development and revenue growth in the blockchain space.
Unlike blockchains powered by the proof-of-stake (PoS) consensus mechanism like Ethereum, which require users to lock up their cryptocurrency to validate transactions and maintain network security in exchange for a reward, the Fastex Chain takes a different approach. This new hybrid PoSA model considers the amount of cryptocurrency staked in a node and a user’s network activity level.
A user’s likelihood of becoming a block producer or validator is based on their actions on smart contracts, and the rewards they receive also reflect this. According to Fastex, this approach increases a user’s earning potential on the chain and can drive engagement in-kind. The Fastex Testnet went live on February 1 and is currently gathering feedback from users to fine-tune the network ahead of its planned Mainnet launch.
Once launched, the new secure blockchain will help Fastex scale its offerings beyond the existing 40 million users and 700 gaming partners the network already supports as it works to become a leading provider in the Web3 gaming segment. In combination with the freshly raised funds, Fastex will also pursue other initiatives marked out in its roadmap, like developing and introducing a feed provider oracle and a decentralized sports platform.
At a point when blockchain fundraising is ebbing due to market conditions and fear surrounding the outlook, Fastex’s token sale results highlight that investors are still lining up behind Web3 gaming and its potential.
Besides paving the way for Fastex to expand its own footprint in the segment, the latest developments may encourage other gaming organizations to employ Fastex’s multi-faceted infrastructure. Moreover, it highlights how blockchain networks can embrace models that encourage growth by incentivizing activity instead of relying upon staking alone to drive adoption.
