Web3 Gaming Investments Need Rigorous Scrutiny Amid Crypto Market Downturn: Animoca CEO
Summary:
Animoca Brands' CEO, Robby Yung, emphasized the need for heightened scrutiny in Web3 gaming investments during a recent address at the European Blockchain Convention. He indicated that investors are now more selective and require evidence of project progression before investing. While user acquisition obstacles persist for Web3 games, Yung stated several deals have been completed in the latter half of 2023, indicating a drift towards quality. Additionally, he highlighted the ongoing challenges with game distribution on major gaming platforms due to uneasiness about the integration of Web3, which he believes hinders platforms from exploring potential opportunities in the sector.
Animoca Brands' CEO, Robby Yung, has indicated that investing in Web3 gaming now requires a heightened level of careful examination amid the challenging cryptocurrency market. Yung, who doubles as a co-creator of the popular Metaverse platform, The Sandbox, emphasized an escalated scrutiny in Web3 gaming investments during his address at the European Blockchain Convention held in Barcelona. He likened investments to identifying the perfect blend of enthusiastic teams with the requisite skills who are intent on developing products that fit into the existent market. Yung is quoted, "Given the current crypto winter and economic recession, as investors, we have the luxury to be particularly selective as capital is quite limited." He further explained that the development phase of potential projects for Animoca Brands to invest in now has to be further advanced compared to a few years back. From Yung's perspective, investors are quite demanding and thus, they require clear evidence of project progression before they decide to invest. In his words, "You must have an operational prototype. Ideally, there should be some form of user testing when you begin to seek outside funding. It's nearly impossible to attract investors solely based on a business strategy in the current market." Yung noted that even though investments are more selective, companies keep finding ways to raise funds with a variety of deals being completed in the latter half of 2023. He pointed out, "It has gotten better, but there has been a drift towards quality." Attracting users continues to be a stumbling block for Web3 gaming, a fact that Yung connects to the difficulties associated with game distribution. He drew attention to the reluctance of major gaming platforms to feature games embedded with Web3 technology. Yung admits that these big name institutions remain unsure about the impact of incorporating Web3 into their platforms, often resulting in an instantaneous negative reaction. He opined, "Integrating Web3 could potentially sidestep their business models, especially the distribution fees they collect." Yung concluded by noting that this reaction has hindered platforms like Steam, EA, and Epic Games from further exploring the opportunities and engaging the Web3 community for solutions that could cater to the broader gaming audience.
Published At
10/31/2023 8:15:04 AM
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