|FOTA has already successfully garnered $8.3 million in one fundraising round
The final event in a series about games that feature non-fungible tokens (NFTs) featured discussions on the attraction of the Vietnamese blockchain game market, and domestic startups in general, when it comes to raising funds and creating a comprehensive ecosystem.
Vietnam is leading the trend in this regard, the panel heard, and is predicted to become a future blockchain capital. Notable ventures recently include the enormously popular Axie Infinity; Sipher, which captured over $7 million from American and South Korean investors; HeroVerse ($1.7 million); and Faraland ($2.4 million). The gameplay ranges from pet rearing to role-playing to multiplayer battle games, and clearly demonstrates quick thinking, grasping trends, and a dynamic business spirit.
Vietnamese startups also have a competitive edge due to a large pool of human resources (HR). Trinh Ngoc Duc, CEO of FOTA, has successfully raised $8.3 million in an angel fundraising round and was valued at $100 million. He and his team have attempted to fully leverage HR paired with marketing experience in order to reach the worldwide market. However, these benefits come with a slew of drawbacks.
“While the industry has a lot of potential, it is facing numerous challenges that prevent Vietnamese blockchain gaming businesses from obtaining overseas financing. The state has not completely authorised cryptocurrency ventures, leaving investors and businesses without the required legal protection,” Duc said.
From the investor’s viewpoint, Duc added, the more unique and innovative the idea is, the more likely it is to capture the industry trend in time. Using today’s most popular search terms, such as blockchain, metaverse, or GameFi, the formation of a blockchain gaming project is undoubtedly easier to draw attention to.
Jennie Hoang Phuong, CEO of D.lion Media & Solutions, recalled a previous failure to remind startups when seeking foreign finance and running a Vietnamese blockchain gaming project. “This is the stage in which the market size is measured and a comprehensive technical system is prepared, eliminating the danger of failing to keep up with investors’ fear-of-missing-out mindset, which typically forms a rising wave on the day of the debut,” she said.
The pace of blockchain growth is growing rapidly, resulting in a situation in which there are numerous programmers, but not enough to fully comprehend and execute everything. As a result, implementing a blockchain project cannot flow effortlessly into a chain, some items may malfunction, and a promising project may be abandoned.
It is feasible that a game-savvy team and a blockchain specialist may disagree on a GameFi project, Phuong added, and alternatively, the programmer may be proficient on one side but require further training on the other.
Since blockchain gaming remains a new industry in Vietnam, it is difficult to avoid fraud, build up mass media enterprises to attract funds, and then leave discreetly, according to William Do, CEO of HOBBIT Investment. When huge amounts of money from foreign funds flow into Vietnamese blockchain games in the setting of a market with numerous volatility and challenges, investors must be cautious to prevent or limit risks to the bare minimum. This may be found in any investing industry besides blockchain gaming.
“It is vital to increase expertise and distribute information in the blockchain community in order for legitimate blockchain gaming ideas to be identified and investment capital supplied to the right people,” Do said. “Rather than avoiding danger, I would opt to face it and clarify it.”
In order to identify the right project, careful evaluation is essential. Strategic vision, cash flow control, and managerial abilities are all important factors to consider, Do added, before an investor decides whether or not to fund a blockchain game project that is suitable for them.
CEOs like Do want to welcome all young people to the blockchain world, a place where they can find help from human resources, financial resources, expertise, and quality relationships to work together and form a complete blockchain ecosystem. The expectation is that blockchain gaming ventures will not only increase in quantity but also in quality, boosting foreign capital flows to Vietnam, he concluded.