NEWSLETTER
The web3 game industry faces stricter investment conditions as capital flows become more selective, and investors prioritize sustainable projects on fundraising based on exaggeration.
In February, the director of Gunzilla Games Web3, Theodore Agranat, described Blockchain Gaming as a “game of musical chairs” in which the same capital Cicla itself through different projects and “without new money.” After that, they leave and look for the next project.
In the same month, the long -awaited Web3 Illuvium game announced a dismissal of 40%, demonstrating the need for the teams to become “super inclined” in the current market. The co -founder and CEO of Sky Mavis, Trung Nguyen, announced a similar movement in October 2024, reducing 21% of its staff to optimize their budget for the next projects.
Despite these events, web3 games professionals said that capital still exists and explained some of the factors that contribute to the industry's trend.
Investors no longer blind their money on projects
The Sky Mavis co -founder, Jeffrey Zirlin, told Cintelegraph that web 3 games do not fight in a unique way, but experience the same capital limitations that affect the broader cryptographic industry.
The executive said that web3 Gaming does not face a unique challenge since the landscape is “tight in all areas.”
Even so, Zirlin pointed out exceptions. He cited Fableborne, a mobile web3 game that was in excess of 16,000% despite the recession of the market, as shown that “fresh capital was flowing to Ronin”, the Red Sky Mavis Blockchain. Added:
“It is not that the investment has dried completely. It's just that investors are no longer throwing money on projects as they did with the so -called “Axie murderers” who failed to deliver. “
“Axie Killers” was a term used to describe game projects that claimed to be the next great web3 game that would overcome Axie Infinity, the Sky Mavis web3 game.
Meanwhile, the co -founder and director of Operations of Sandbox, Sebastien Burget, told Cointelegraph that the description of “game of musical chairs” suggests a certain degree of randomness. Borget said he doesn't agree with this.
The executive said that while the new capital is more limited and that investors are more cautious, there are less than unpredictability previously fed by exaggeration cycles.
“The success of Blockchain games depends more and more on the ability to meet traditional game metrics. These include offering convincing content and play, promoting sustainable user acquisition, establishing a strong economy in the application and building a loyal user base, ”he added.
Related: Axie Infinity makes fun of the new web3 game as nft Outlook becomes positive
The projects cannot simply “slap nft” in a game and raise millions
Josh Gier, marketing director of the Coliseum Game Tournaments Platform, told Cointelegraph that the days of simply adding non -fungible tokens (nft) to a game and obtaining a massive support from cryptographic investors have gone.
“Yes, Blockchain Gaming's speculative phase, where projects could raise millions only with NFTbear in a game, has cooled. But that does not mean that capital has disappeared,” Gier said.
The executive said that the capital is becoming more selective and flows to projects with solid foundations and sustainable economies.
“Investors show interest in the games that make up the web3 elements in a way that improves the player's experience instead of focusing solely on financial incentives,” Gier added.
Vineet Budki, the CEO of the Risk firm Sigma Capital, said that some main investors, such as Animoca's brands, focus specifically on the Blockchain Games segment. He said that games take longer to build, unlike other niches, so investments in the games take longer to bear fruit.
Even so, said the Executive, raising the web3 game capital has become more complicated. “Behind were the moments when you made a video about the game, you have an attractive tokenomic and raised capital,” Budki said in a statement sent to Cointelegraph.
The executive said that the teams that build excellent games and that have knowledge of the distribution process are the elements that can attract capital.
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