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Animoca Brands, a prominent blockchain gaming and metaverse investment firm, announced a strategic collaboration and investment agreement with Neom, a large-scale Saudi Arabian urban development project, on Monday to boost crypto technology adoption in the Gulf area.
The companies agreed to work together on digital infrastructure initiatives that will support Neom’s Vision 2030 aims and create a hub to promote the local blockchain ecosystem. Neom first announced an investment in Animoca Brands last week, but did not provide further specifics.
Neom’s investment arm will also invest $50 million in Animoca Brands, subject to approval. According to the announcement, Neom will spend $25 million on convertible notes issued by the company and another $25 million on Animoca shares purchased on the secondary market.
“We are excited to partner with Animoca Brands to support the development of Neom’s digital infrastructure,” stated Majid Mufti, CEO of Neom Investment Fund, in a press release. “Web3 technology and infrastructure development will not only be an important foundation of Neom’s tech stack and architecture, but also has potential to revolutionize global industries.”
In the projected 34,000 square mile development in northern Saudi Arabia, Animoca Brands will assist Neom in the creation of blockchain-based services that can enable new models for living and working. Their collaboration will involve a variety of Web3 and metaverse initiatives customized to Neom’s vision for the future.
“We have always referred to the growth of the Web3 ecosystem as the emergence of a new meta-nation, and now Neom could very well become the first region to fully harness the power of blockchain,” said Yat Siu, co-founder and chairman of Animoca Brands, in a statement.
Neom is a projected metropolitan metropolis in Saudi Arabia’s Tabuk Province that will embrace emerging technologies in pursuit of a futuristic, green energy-powered city.
The project is anticipated to cost $500 billion in total, however it has been met with controversy and attention due to allegations of forced relocation of indigenous tribe members.
Animoca Brands is a well-known blockchain game publisher and metaverse investor. The company is responsible for games such as The Sandbox and Formula E: High Voltage, and it has backed hundreds of Web3 companies such as NFT marketplace OpenSea, NBA Top Shot producer Dapper Labs, and Axie Infinity gaming studio Sky Mavis. Last year, Animoca was valued at $5.9 billion.
