Investment in Blockchain Gaming Explodes
The blockchain gaming space could be poised for explosive development in 2022, as investors line up behind startups and major developers begin assembling teams.
The fourth quarter has seen breakneck growth in the relatively new space of blockchain and NFT centered gaming, with hundreds of millions in capital flowing to new ventures.
Making a splash this week was Forte, which is developing a blockchain development platform to spur the creation of new games. This week it announced it raised a $725 million Series B led by Sea Capital and Kora Management, and supported by a cadre of well known crypto funders.
That comes a month after Sky Mavis, makers of Axie Infinity, announced a $152 million raise that valued the group at $3 billion. Axie Infinity has done more than $3 billion in sales and claims more than 2 million active users.
All this has caught the attention of many traditional gaming giants. In recent weeks, Electronic Arts, Square Enix and Ubisoft all announced plans to dive into play-to-earn gaming and NFTs and have each started to hire to fill out the project plans.
And it’s not just video games that are digitizing. Hasbro, who owns card-game Magic: The Gathering, indicated they were exploring using NFTs with the brand.
Crypto-native card games are already popular. Parallel Alpha, which has only released some of its digital cards and does not yet have a functioning game already has more than $150 million in sales, according to data aggregation site CryptoSlam.io.
Blockchain gaming is fundamentally different from most other gaming enterprises because of how it approaches ownership. Here’s how exchange Zipmex put it:
“Blockchain gaming gives players complete control over the digital assets they earn or gain through their participation in the games. Even if players pay real money for their digital assets in traditional games, they will lose access to them if the server is ever turned down. Both the money and the game assets would remain the property of the publisher or developer.
Meanwhile, players in blockchain games retain total ownership of their digital assets, allowing them to freely trade them with other players, sell them for real money, and potentially use them across numerous game universes.”
The blockchain gaming space could be poised for explosive development in 2022, as investors line up behind startups and major developers begin assembling teams.
The fourth quarter has seen breakneck growth in the relatively new space of blockchain and NFT centered gaming, with hundreds of millions in capital flowing to new ventures.
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