A week of killing your L3
Geist and Treasure Chain, we hardly knew ye
Top 300 Web3 Games Index: ↑6% today, ↓60% YTD
Ronin Games Index: ↑8% today, ↓69% YTD
Immutable Games Index: ↓2% today, ↓64% YTD
AI Gaming Agents: ↑7% today, ↓70% YTD
Jon’s TX Games Index: ↑5% today, ↓59% YTD
Jon’s 2025 Reboot Index*: ↑7% today, ↓57% YTD
*Definitely not investment advice
Last week it was TreasureDAO that announced it was downsizing its team and shuttering its new Treasure Chain L3.
This week, it’s Aavegotchi core developer Pixelcraft Studio that’s downsizing its team and shuttering its Geist L3.
Both projects are OGs in the blockchain gaming sector, and both have been relatively successful in terms of raising retail capital against an ambitious vision.
In retrospect, however, both also over-spent funds in the attempt to build out those visions, realizing too late that not only did they not have product-market-fit, but that they were burning multiple millions of dollars in a combination of staff and chain operational costs.
Of course, today is not a period when such projects can refinance.
Still, at least they haven’t spent $90 million as top US studio Neon Machine is reported to have spent in the attempt to build out its PC shooter game Shrapnel and its underlying Avalanche-based gaming blockchain.
Even — or especially — in blockchain, uncontrolled monthly burn rate will kill you quicker than the market cycle.
But there remain plenty of bright spots and plenty of new projects who have been successful in terms of raising capital against an ambitious vision.
The latest is game distribution and esports platform Ultra which has raised $12 million in the attempt to “eat a chunk of Steam” as new CEO Gus van Rijckevorsel puts it.
Sponsored by Hiro Capital: investing 📈 in the future 🔮 of gaming 🎮
Weekly News roundup
Gamee starts phased launch of degen Telegram-based TCG Moon Cards.
Pool Masters goes live on app stores ahead of How to Train Your Dragon collab.
Mobile-first gaming L2 ZKcandy’s mainnet goes live.
Horizon Blockchain Games rebrands to Sequence, buys chain abstraction builder Light.
South Korean outfit BPMG expands into Japanese market and web3 gaming.
Azra hires ex-PlayStation Mobile head Kris Davis as CBO.
No video this week…
Delayed Gratification news
Proof of Play has opened up claims for Pirate Nation’s third play-to-earn season. The twist this time is that 10% of rewards are available to claim now with more dynamically unlocked on a hourly basis. You have to wait 180 days to get your total claim, which comes with a bonus reward of Proof of Play Points.
However, given that the price of the PIRATE token continues to fall, most people would likely be better off claiming now — or at least at some time before 180 days — but my diamond hands mindset will see me forgoing today’s $13.5 payoff.
We’ll see what I get on 8th October. I’m sure it will be lower than the claim’s nominal $135 value based on today’s PIRATE price, but it’s not about the money. 💎 🙌
Additional Links
EVE Frontier’s 10 day free access period has started.
NFTs still not dead; an alien CryptoPunks sells for $6 million.
Team Liquid has partnered with Wildcard as the game goes into closed beta testing via Steam.
Man who’s been running a bunch of community wikis about Ronin games says he’s stepping down as no-one’s paying him. Sky Mavis marketing guy says ‘Check your DMs’, so maybe it will all turn out okay.
All the principle characters in Treasure’s Bridgeworld have now been turned into fully-fleshed AI personalities.
Forthcoming MMOG Axie Infinity: Atia’s Legacy has surpassed 15 million pre-registrations.
One Year Ago: Solana deck builder Eternal Dragons announced it was shutting down.