7 Startups to follow in Blockchain Gaming
The world of gaming is evolving every day. The pandemic has further accelerated the big changes in the gaming industry. As there are over 2.6 billion players globally, there is an increasing need for gaming community platforms. The gaming industry is valued at $175.8 billion (2021) opportunities (Newzoo) and can grow to $300 billion by 2025 (Globaldata). However, Bitkraft has valued the gaming industry at $336 billion in 2021.
The gamers spent the money to buy items like skins, weapons, avatars, etc. in the game. However, virtual goods are not verifiable and there are no real ownership prospects. Further, these virtual goods have limited functionality and are confined to a single platform.
So these numbers must be boggling your mind and I agree with that. However, your jaw will be on the floor when you will hear about Blockchain Games. Wait, what is that?
In simple words, Blockchain Games use blockchain technology in general. It allows the players to purchase NFTs within the games. The players can sell or trade these items in the marketplace. Blockchain games are gaining popularity owing to play-to-earn (P2E) models and the spurt in NFTs. Around 804,000 unique active players connected to blockchain-based games in July 2021 (Blockchain Game Alliance).
The blockchain game market is are any games that include blockchain technology in its backend or mechanics in general. One feature driving the adoption and use of blockchain tech in games is the ability of players to store items on the blockchain. Purchased items can be transferred to a wallet, making them permanently yours. The players can truely own the assets rather than making only entertaintment expenditure. (Venturebeat)
The value of blockchain gaming is estimated at $1.5 billion. However digital ownership via NFTs can be a $15 billion opportunity. Further, it is estimated that blockchain gaming can grow to $50 billion by 2025. Most gaming platforms will have marketplaces where users can purchase and exchange items. The blockchain gaming sector is proving to be a magnet and attracting millions of dollars of funding in the last 10 months.
If you are curious about this space, the following are the top startups to follows:
Forte (www.forte.io)
Forte is building blockchain platform for games, as well as, set up an equity-free developer fund to accelerate the adoption of blockchain technology in the gaming industry. The game publishers can use the blockchain platform to integrate features like NFT marketplace, payment rails, and token wallets into their games. Forte is not building games on its own but establishing itself as an infrastructure company to support blockchain games. The company has raised $725 million in Series B funding(November 21) and $185 million in Series A (May 21).
Dapper Labs (www.dapperlabs.com)
Dapper Labs is a developer of an online gaming platform intended to offer games built upon blockchain technology. The company has two main platforms: NBA TopShot (nbatopshot.com) and CryptoKitties (www.cryptokitties.co). The platform allows users to buy, sell, and create different kinds of virtual kittens in the form of NFTs as collectible digital assets. The most expensive Cryptokitten was sold for $172,000). The company has raised $650 million so far, of which $250 million was raised in September 2021 at a post-money valuation of $7.6 billion.
Mythical Games (www.mythicalgames.com)
Mythical Games is another amazing blockchain gaming company, as it has launched its own game (first game: Blankos.com) and also building player-owned economies with top game developers and publishers. The company is bringing 3 key industries together — Gaming, Blockchain, and Marketplace. Through smart contracting, the company ensures that the gamers get verifiable products and also creating a marketplace to trade NFTs. Mythical turned into a unicorn with its recent round of $150 million of Series C (Nov 2021) at a post-money valuation of $1.25 billion. Previously, it raised $120 million in Series B funding (June 2021).
Axie Infinity (www.axieinfinity.com)
Axie Infinity is the most popular blockchain gaming platform and allows players to earn in-game resources and trade them for their own token (AXS). The platform is built on the Ethereum network platform. It is a Pokémon-inspired universe, where players can battle, collect, raise, and build a land-based kingdom for their pets. It is one of the largest and strongest communities in NFT gaming. The company raised $152 million in Series B funding (October 2021) at a post-money valuation of $3 billion. The current value of the AXS token is $8.7 billion.
Animoca Brands (www.animocabrands.com)
Animoca Brands, based in Hong Kong, is the developer of play-to-earn blockchain games that allow players to collect and trade NFTs on its platforms. The most popular title is The Sandbox, which allows players to create and monetize in-game assets such as lands, wearables, and equipment. The company has raised $65 million (October 2021) at a valuation of $2.2 billion. It has raised $217 million to date.
Immutable (www.immutable.com)
Immutable, based in Sydney, Australia, has built Ethereum blockchain-based eSport games and a marketplace for gamers to transform digital asset ownership in the video-gaming world. It is the creator of the Gods Unchained NFT-based collectible card game. The company is planning to issue a $GODS token, which will be embedded within Gods Unchained’s “play-to-earn” game loops. The company has raised $82 million in Series B funding (September 2021). In total, it has raised around $105 million.
Horizon Blockchain Games (www.horizon.io)
Horizon Blockchain Games, based in Toronto, is one of the new entrants in the blockchain gaming industry. The company is developing blockchain-powered video games and building a free-to-play community-driven eco-system for decentralized games. The most popular free-to-play card game under their banner is Skyweaver (www.skyweaver.net) — allows players to win, own, trade, and gift their cards. The company has raised $4.5 million of pre-series A venture funding (July 2021).
GAMERS Vs. BLOCKCHAIN
It’s mind-boggling to watch how these firms have grown in such a short period of time. However, the blockchain gaming firm has already begun to face criticism from players and game publishers. Recently, Valve Corporation recently decided to ban all games using blockchain technology from its platform. It mentioned that applications built on blockchain technology that issue or allow the exchange of cryptocurrencies or NFTs shouldn’t publish on Steam. On the other hand, Epic welcomed blockchain games on its platform. It will be interesting to see how the world of gaming will change.
