Against stiff headwinds of distrust, one project is building a town square for gaming NFTs – with a bevy of big-name backers.
Fractal, Paradigm and Multicoin Capital led a seed round of $35 million for the e-game platform. Andreessen Horowitz, Solana Labs (a16z), Animoca Brands and Coinbase Ventures are some of the other investors. Terraform Labs CEO Do Kwon is another investor.
The platform, launched in December by Twitch co-founder Justin Kan, functions as a marketplace for players to buy Solana-based NFTs directly from game companies as well as a secondary marketplace for peer-to-peer trading.
“There’s always been lots of hype around NFTs, but what investors are now seeing is that it’s actually durable,” Kan told CoinDesk in an interview. “Even if it’s a bear market, even if the prices might go down, the idea that people want to collect digital assets on the internet, that’s going to stay. Digital items in gaming, it’s like a new category of e-commerce basically.”
Although play-to-earn gaming hype has been cooling in recent months, institutional investments have continued to flood the space with money.
Notable investments in March alone included a $25 million raise for Terra-based gaming platform C2X, a $4.8 million raised for blockchain gaming startup Battlebound and a $6 million raise for the Polygon-based Crypto Raiders NFT game.