Web3 Gaming Resilience through Fully Onchain Games
FOCG and Autonomous Worlds: Beyond the Hype, Into the Promise
A Glimpse into the Current Crypto Landscape
Navigating the choppy waters of the crypto market can sometimes feel like a heart-stopping rollercoaster ride. With its unpredictable ups and downs, many sectors struggle to hold their ground. But amidst the chaos, blockchain gaming stands wounded, but not beaten.
Have you ever been in a storm and noticed one tree that refuses to bow to the wind? That's what web3 gaming feels like in the current crypto climate. While the market watches, often in disbelief, as staggering amounts simply vanish from digital asset books, one belief remains strong: don’t fade web3 gaming. Many of us believe it might just be the gateway that introduces a fresh wave of enthusiasts to the mesmerizing world of crypto.
And it's not wishful thinking. Numbers back this up. Messari Crypto's report was an eye-opener: in Q3 alone, the gaming sector outshone all other consumer application segments, raking in an awe-inspiring total of over $140 million in funding. Achieving such numbers, even as the market tests our resolve, speaks volumes about the potential in blockchain gaming.
Of course, it's not all smooth sailing. The crypto gaming landscape, like any other industry, faces its share of turbulent waters. Take for instance the recent news from METAPIXEL, announcing the halt on their flagship game Gran Saga Unlimited. Given METAPIXEL's reputation as one of the most ambitious and eagerly anticipated games, the news left us pondering about the future.
But, you know what they say about challenges? They often pave the way for innovation. Instead of getting lost in the shadows of setbacks, I'd rather shine a light on the success stories that inspire.
Let's dive into a couple of trailblazing projects in the fully onchain games. Their impressive funding not only underlines the industry's promise but also rekindles our faith in its bright future.
Celebrating Fully Onchain Gaming Successes
In the past month alone, the fully onchain games sector has witnessed a surge in funding. Proof of Play, the masterminds behind the 'Pirate Nation' game, successfully raised $33 million in a funding round spearheaded by a16z and Greenoaks.
Simultaneously, Paima Studios, developers of the Paima Engine, clinched a $1.4 million grant from Cardano. Notably, this grant represents the largest allocation ever made for autonomous worlds within the web3 space.
Following the fundraising announcement by Proof of Play, the floor price of their Founder’s Pirate NFT experienced a spike, climbing from 0.05 ETH to 0.14 ETH in merely an hour after the news broke on Twitter. This rapid appreciation was driven by a wave of eager buyers, many of whom, caught up in the FOMO (Fear of Missing Out), accumulated multiple genesis NFTs in anticipation of capitalizing on the funding news.
At the time of this writing, the floor price for the Founder’s Pirate NFT stands at an impressive 0.1659 ETH, marking a remarkable +316% surge over the past 30 days. But is every massive funding story a guarantee of success?
Funding: A Blessing or a Curse?
The recent mania around NFT flipping after big funding news might suggest so. But we've all seen projects rise and fall, raised then failed, haven't we? Big bucks in the bank doesn't always translate to longevity or prosperity.
Consider Ascenders, a highly anticipated AAA action RPG game. The hype around their project was real. Yet, just recently, they dimmed the lights on their flagship project. Why? Their Land NFT mint, which they'd hoped would be their saving grace, didn't meet their expectations.
Now, remember, these were the same folks who had $6.5m in funding back in March of last year. That should've fueled them for a good two years. But a little over a year later? They hit a financial dead end.
Simon Davis, the CEO of Mighty Bear Games, once pointed out a paradox. Many games in the recent past had raised "just enough money to fail." He likened this trend to the mobile games era of 2010. While funds became harder to come by over the years, valuations soared. Ascenders had the funds, no doubt. Yet, here's what baffles me - why pin all hopes on a Land NFT sale?
Now, let's flip back to Proof of Play. Last October, they took a path less traveled. Instead of selling, they chose to give away their Founder's Pirates NFTs for free. Why? Charging people for a game still in its beta phase didn't sit right with them. Especially in a market that’s been rough on many.
They weren't following trends or trying to make a quick buck. They genuinely believed it was the right thing to do, and they had the funds to support that belief.
The contrasts between Ascenders and Proof of Play are stark. One relied heavily on NFT sales to stay afloat, while the other confidently moved forward, secure in their funding and vision.
Now, don't get me wrong. It's not about pitting one against the other. Each game, each project, is unique. But it's essential to understand the core of these developments. In a bearish market, securing funds is like finding water in a desert. While Ascenders had early promise, their substantial funding couldn't guarantee success. The game's destiny, ultimately, rests on its creators' shoulders and, most crucially, on their intent.
As for Proof of Play, the journey has just begun. Their intentions might be spelled out in Medium articles, and their coffers might be filled to the brim, but fate still keeps its secrets. How they play them will decide the fate of their game.
Paima Studios and the Evolution of Fully Onchain Games Infrastructure
Diving deeper into the Paima Studios narrative, it’s evident that there’s more at play here than just game mechanics. That trip to Singapore for Token2049 last month was an eye-opener. As I mingled in a room with passionate discussions echoing from every corner, Sebastien Guillemot of Paima Studios caught my attention.
He was there, showcasing Tarochi, a fully onchain MMORPG similar to the pixel retro-Pokemon on console. I'll confess, amidst the excitement of new connections and handshakes, I only caught snippets of his demonstration. But after revisiting AW Research’s recap of the event, everything clicked.
One particular debate that I recalled was the discussion on too many founders working on infrastructure projects and not enough focus on creating high-quality games. David Amor of Playmint offered a cautionary perspective on infrastructure outpacing the very games it supports. My vantage point is slightly different. I believe it's the soul of a game – its gameplay requirements and mechanics – that truly carves the path for infrastructure. It's reminiscent of the Web2 era where custom game engines, tailored to a developer's vision, held the spotlight.
But let's not get sidetracked by game engines. In this dawn of onchain gaming, where perfect formulas are still elusive, and everyone is still experimenting, my bet leans toward the infrastructure.
The flexible and permissionless nature of onchain games, the freedom to mod and adapt, beckons a destiny brimming with innovation. And isn't it curious how sometimes the offshoot outshines the original? Think of how Counterstrike stole the spotlight from Halflife, or Dota eclipsed Warcraft 3.
So, what's brewing for Paima Studios? Are they gearing up to unveil a token, perhaps anchoring a decentralized autonomous organization (DAO) of game developers and founders? Or maybe an NFT licensing agreement, granting developers the power to craft their own experiences on their Paima Engine? We’ll have to wait and see. But with Paima Studios' visionary approach and ample resources, it's a story I eagerly anticipate.
Closing Thoughts
In the early days, many dismissed the premise of fully onchain games, labeling them as fleeting bubbles soon to burst. But as the pages turned, they have not only stood their ground but have flourished.
During my daily scrolls on Twitter and while gathering insights for thecoreloop, a clear trend emerged. The conversation around fully on-chain games and autonomous worlds has amplified. There's a palpable shift as projects, like thecoreloop's 'Onchain Space Station' and the collaborative efforts of Composable Labs and KlickGG, spotlight the potential of on-chain gaming. Even niche outlets like Ben Giove’s WASD blog are now riding this wave, underscoring the growing passion of the community for this space.
Yet, the winds in the gaming industry are unpredictable. Though there are tales of onchain games and projects braving the bear market and thriving with significant funding, deep pockets don't always chart the path to success.
As Simon Davis rightly pointed out, a robust team, hefty funding, and even successful launches don't guarantee a game's longevity or consistent returns for its stakeholders. Today's market is tumultuous, often unkind to underfunded ventures, making the fundraising landscape challenging to navigate.
But here's where my heart truly lies: in this volatile landscape, it's the grit, vision, and adaptability of the teams that will dictate their fate. Challenges will come and go, but it's the resilience to adapt, to make tough calls—be it reducing headcount, accepting down-rounds, or foregoing unbeneficial partnerships — that will shape tomorrow. I believe in the fire of those who stand firm in the face of adversity; they are the ones poised to champion the next bull run.
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h/t to thecoreloop contributors: @0xkapital_k @chng_raymond @cloudxgmf @wassiecapital @iandaog @playtern @friandoteth @0xconglomerate @itsbambam