2024: A Year of Transformation in Gaming Industry with Illuvium’s Shared-Revenue Model & Major Investments
Summary:
The gaming industry anticipates a surge of releases in 2024, with developers exploring metaverses, non-fungible tokens, and play-to-earn features. Illuvium, a game developer, is introducing a revenue-sharing model in its upcoming release. Investment in the gaming industry is flourishing, with venture capital firm Andreessen Horowitz putting $30 million into tech-centric gaming startups. Crypto Biz also highlights Binance's formation of its first board of directors, Paradigm's potential raise of up to $850 million for a new fund, and cryptocurrency mining firm Bitfarms' $240 million investment in equipment upgrades ahead of the Bitcoin halving.
Expect a wave of highly anticipated video games to come crashing in 2024, following a phase of diligent development since the previous boom era. Competition is pushing game developers to reimagine their business tactics to attract and keep players. Some studios are continuing to explore options involving metaverses, nonfungible tokens (NFTs), and even play-to-earn components. For example, game designer Illuvium is crafting an intertwined environment that integrates three different games into one joint experience. Illuvium's forthcoming launch introduces a shared-revenue model, explained by co-founder and CEO Kieran Warwick, “All the in-game revenue from players is used to buy ILV from the market which we then distribute to the protocol stakers. The longer you stake, the larger your portion of each distribution.” The platform has successfully accumulated $12 million in support of the game's projected launch in the second quarter of 2024. Warwick is confident the gaming market is about to make a grand splash. Another entity forecasting a similar outcome is venture capital firm Andreessen Horowitz, which announced a $30 million investment to bridge technology and gaming. Source: Sam Altman
This week's Crypto Biz gives attention to renewed hopes in the gaming industry, the establishment of Binance's debut board of directors, Paradigm's fresh crypto fund venture, and preparations among miners for the Bitcoin halving.
Andreessen Horowitz revealed its plan to inject $30 million into technologically driven gaming startups specialising in areas like artificial intelligence (AI), virtual and artificial realities (VR/AR), and Web3 games. “We aim to finance the crossroad where technology meets gaming, encompassing AI/infra, 3D tools, VR/AR, web3 games, and gamified consumer applications,” stated Andrew Chen, a partner at Andreessen Horowitz who supervises the Games One Fund. Over the next 45 days, the firm's "SPEEDRUN" early-stage accelerator program will distribute the $30 million, with each associated startup receiving $750,000.
For the first time, crypto exchange operator Binance Holdings has assembled a seven-person board of directors, comprising both company executives and independent members. Binance's newly-minted board of directors is helmed by Gabriel Abed, the previous ambassador for Barbados to the United Arab Emirates. Other members include Binance CEO Richard Teng, co-founder Heina Chen, and additional notable industry figures. The establishment of the board signifies one of the most substantial transformations in Binance's leadership since Teng transitioned from head of regional markets to CEO in November 2023.
Crypto venture capital firm Paradigm is reportedly in talks to raise anywhere between $750 million to $850 million for its new fund. A successful raise would constitute Paradigm's biggest since its record-breaking $2.5 billion fund generated during the bull run peak in November 2021.
Bitcoin mining firm Bitfarms has unveiled plans for a substantial $240 million upgrade to its mining equipment, angled towards maintaining profitability after the forthcoming Bitcoin halving. Bitfarms mined 286 BTC in March 2024, an achievement underscored by the steady rise in hash rate capacity needed to stay profitable in Bitcoin mining. The past two months saw Bitfarms sell almost all its mined Bitcoin to reinvest in expanding its mining fleet.
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Published At
4/6/2024 12:00:00 AM
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