Oct 25, 2022

Blockchain gaming startup raises the rounds on the heels of rising play-to-earn demand The company raised $3 million from several venture firms at a valuation of $30 million The startup has also partnered with several well-known gaming guilds, which it plans to tap to increase its market share. Blockchain-based gaming platform OpenBlox has raised its seed round as the company looks to ride the wave of interest in play-to-earn gaming in preparation for its first game launch later this year. OpenBlox raised $3 million at a $30 million valuation and plans to set aside funding for product and business development, game design, and additional staff. The round was led by venture capital firm Shima Capital, a recently launched San Francisco firm run by veteran venture capitalist Yida Gao. Venture firms including 3Commas Capital, 100×100 Venture Capital, Digital Strategies and MC Ventures also participated in the seed round. OpenBlox, which uses Ethereum Virtual Machine (EVM) technology in an effort to create a bridge between blockchains, also has an NFT marketplace in the works — and is partnering with several major gaming guilds in the meantime. The team plans to launch three games – players can deploy blockchain applications, including NFTs (fungible tokens), in a trio of metaverses. The gaming platform intends to create a Web3-powered community as opposed to casting digital collectibles on a one-time basis – an approach that can provide immediate benefits, but one that rarely drives sustained user engagement. Also read: Its digital universe is based on a collection of 7,998 Genesis Bloks NFTs that can reproduce through in-game mechanics similar to the blockbuster play-to-earn giant Axie Infinity. The fundraising comes as a growing number of top-tier traditional game-makers — including Ubisoft — are looking to employ blockchain elements. Industry participants say blue-chip, so-called AAA developers, have a leg up on game design and gameplay, but have faced a tough sell from gamers wary of NFTs due to environmental concerns. Starting only with Ethereum, the team has focused on the Arbitrum blockchain, a side-chain, as it works to expand its decentralized finance (DeFi) transactions. The startup plans to introduce an in-game token, which might convey governance features down the line. The long-term plan is to create a decentralized autonomous organization (DAO) that will be controlled by the game players. Gao, who has previously backed other play-to-earn Web3 startups, said the team has “deep experience” in both traditional video games and crypto natives. OpenBlox is also working with a number of top-tier developers and graphic designers, which helps, he said. The challenge is to bridge traditional video gamers – accustomed to stunning graphics and engaging gameplay – with crypto native veterans who may be less picky on the gameplay front, but more especially when it comes to the blockchain technology in play and creating Ability to earn your time and money as a consumer in return for loyalty. “You basically want these new kinds of ways to play games, where the ownership is in the hands of the players, not the developers, and you’re able to bring in other users and bring other counterparts into the space,” Gao said. “So, instead of letting all the graphic designers and people making games in the studio control everything, you can bring in others.” The game’s graphics are noticeably sharper than your average crypto-native game, said Elle Sia, a Web3-focused investment director at OpenBlox backer Digital Strategies. And the team, according to Sia, is working hard to make sure the gameplay is fun and engaging. “It needs to be fun,” Sia said. “Otherwise, no one is going to play it. Otherwise, it becomes a bit Ponzi, requiring new players to come as far as you can.” The startup will rely heavily on its partnerships with gaming guilds – including Gaming Guilds (RDG), Ancient 8, Good Games Guild and BreederDAO – to drive interest in the Metaverse venture and acquire players around the world. Openblox founder Dr X said in a statement that the startup’s up-and-coming investors “bring a large network of stakeholders” to the venture. Get the top crypto news and insights of the day delivered to your inbox every evening. Subscribe to Blockworks’ FREE newsletter now. Michael Bodley managing editor Michael Bodley is the New York-based Managing Editor for Blockworks, where he focuses on the intersection of Wall Street and digital assets. He previously worked for the institutional investor newspaper Hedge Fund Alert. His work has been published in The Boston Globe, NBC News, The San Francisco Chronicle and The Washington Post. Contact Michael via email [email protected]