Arbitrum's $400M Gaming Fund

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Good Morning.

ETH Dencun upgrade was a success and spot Bitcoin ETF inflows continue to hit new ATH. Private market are getting hot with 9-figure valuation deals closed on the daily. Seems like we’re entering the second phase of the bull market fairly soon. Let’s see if we break the $3T market cap ceiling this week.

In Today's Email:

• What Matters: Arbitrum’s $400M Gaming Fund 🎮️ 

• Founders Highlight: Evgeny of Zerion 👝

• Deal Flows: Eclipse’s $50M Series A💰️ 

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WHAT MATTERS

Arbitrum Proposes $400M Gaming Program

State of play: Arbitrum Foundation proposes to allocate 200M $ARB (~$400M) to attract game publishers and developers to create games on its blockchain through the “Gaming Catalyst Program” (GCP).

• The proposal suggests allocating 160M ARB to incentivize publishers and developers to create games on Arbitrum.

• The remaining 40M ARB will be allocated to support infrastructure projects for gaming on Arbitrum.

• GCP aims to attract talented developers and expedite their game development processes.

Why it Matters: GCP targets 200-300 developer applications, seeks a 20% share of new web3 games, aims to be the top choice for migrations from other Layer 2 platforms, and plans to launch over 25 Orbit projects.

For builders and investors: The GCP was announced three days before Arbitrum is set to unlock 673.5M $ARB (~$1.3B) for its team and advisers during a March 16 "cliff unlock" event.

BUILDER-INVESTOR HIGHLIGHT

Evgeny Yurtaev of Zerion

Intro: Evgeny Yurtaev is the Co-Founder and CEO of Zerion, a web3 smart, social wallet and investment tool that allows mobile users to manage their DeFi and NFT portfolios, supporting all chains and thousands of protocols.

• Evgeny is also an angel investor in Trela, Copy.ai, and Hashflow.

Previous background: Evgeny started his career as a Software Engineer who interned at Google and worked for Jufy Projects. He holds a Bachelor's degree in Computer Science from Minerva University.

The big idea: Zerion is developing the ZERO Network, a Layer 2 solution expected to launch in late Q2 or early Q3 this year, designed to offer zero fees to facilitate easier crypto onboarding.

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INSIGHTS

Why Founders Should Care About the Market

Credits to Joel John for the original tweet.

Joel John from Decentralised.co shares his view on why founders should not only focus on building but also need to pay attention to the market.

Joel emphasizes the critical importance of understanding the market dynamics and financial strategies for founders, particularly in the crypto space.

Here is the summary of his tweet:

• Success is not just about creating good products but also understanding and leveraging market structures, aligning incentives with growth, and recognizing the capitalistic nature of the industry.

• Joel shares insights from working with around 200 crypto teams, highlighting the value of strategic planning, the role of valuation in driving growth, and the necessity of adapting to market feedback.

• Savvy founders build financial reserves during bull markets and capitalize on acquisitions during downturns.

• Market perception, symbolized by price movements, significantly affects a project's success.

• Ultimately, Joel advocates for a balanced approach where both product development and market engagement are essential for making a significant impact.

DEAL FLOWS

Eclipse Labs’s $50M Series A

Deal flows remain steady this week, we saw $180M+ in deals 💼

Eclipse Labs has raised a $50M Series A co-led by Placeholder and Hack VC. Eclipse Labs is a San Francisco-based software firm contributing to the development of the first Ethereum L2 using the Solana Virtual Machine.

• Other participants in the round included Polychain Capital, Delphi Digital, Maven 11, GSR, Auros, and OKX Ventures.

• Various researchers and builders participated as angel investors, including Barnabé Monnot (Ethereum Foundation), John Adler (Celestia Labs), Austin Federa (Solana Foundation), and ZachXBT.

• The company intends to use the funds to expand operations and development efforts.

Deal flows in the past week:

• Blockus, $4M Pre-Seed Round

• Fjord Foundry, $4.3M Seed Round

• Munchables, Undisclosed $ Seed Round

• NFTfi, $6M Series A Round

• Clique, $14M Series A Round

• Eclipse Labs, $50M Series A Round

• Berachain, $69M Venture Round

• Elixir Protocol, $8M Series B Round

• Pallet Exchange, $2.5M Private Round

• MetalCore, $5M Private Round

• Qna3, Undisclosed $ Private Round

• UXUY, Undisclosed $ Private Round

• Cellula, Undisclosed $ Private Round

• Ethena, Undisclosed $ Private Round

• Derivio, Undisclosed $ Private Round

• Shogun, Undisclosed $ Private Round

• NFPrompt, Undisclosed $ Private Round

• Param Labs, Undisclosed $ Private Round

• Polyhedra, $20M Strategic Round

QUICK BITES

• UK Judge says that Craig Wright is not Satoshi.

• Avalanche reveals the five community coins it holds.

• BlackRock’s Spot Bitcoin ETF crosses $15B in AUM.

• SEC charges 17 people in $300M crypto ponzi scheme.

• MicroStrategy plans to raise $500M to buy more Bitcoin.

• EBA takes the next step in finalizing the stablecoin policy.

• Dencun Upgrade goes live, ushering in a new era for Ethereum.

• South Africa is set to license 60 crypto platforms by month-end.

• Hong Kong regulator lists Bybit as a ‘suspicious’ trading platform.

• Crypto funds break the 2021 inflow record in under 3 months in 2024.

NOTEWORTHY READS

• The Generalist’s read on the future of Farcaster.

• Folius Ventures’ read on Chinese developer report.

• Rob Sarrow’s read on the intersection of AI and crypto.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.