Why Are So Many Crypto Games Shutting Down? Experts Weigh In

Crypto gaming saw a worrying trend Projects excluding or abandoned after years of hype, selling token and chaos. Experts say that this is not a big surprise, given the challenge of the development of the games and pointed to toys tokens as a flawed system that exerts too much pressure on projects in their infancy.

It is easy to say that we all saw that it was coming, but in reality many recently abolished titles once left Blockchain experiences.

The deadFor example, he was once led by the popular Streamer Dr. Disrespect And he had a significant hype, before the studio crashed in January after removing the creator of the content due to the alleged violation of the law. Saltworks Sagittarius of cats Nyan Heroes added more than 250,000 wishes of wishes on stores, but Excluded in May When funding spilled.

He doesn’t mention it Raini: Lords of light,, Metalcore,, Blast Royale,, Mojo Melee,, Open season,, Areas of Aluryeand more, s The Walking Dead: Empire and Simbiogenesis They both close in the coming weeks. Recently, she doesn’t look good for a crypto play.

“Even in the traditional world of games, 90% of games fails,” John Linden, co -founder and executive director Mythical gamessaid Decipher. “This is a kind of what we see on Web3 – 90% will not succeed. I think the problem is only public, because on the traditional game you do not have the players who invest and that you are part of that game design before it fails. You see it after it comes out.”

When they go out of traditional games and they are the main flop, the industry is upset – in some cases the players return their money, for example when the CD project Reduced the players yes refund Cyberpunk 2077 after a catastrophic launch in 2020. But more often than not, the traditional games will not succeed before the public can spend money on it – ie the last of us: fractions, Spinoff for multiple players who was Canceled in 2023.

This is not the standard in the crypto industry. Games routinely betray tokens and NFTS Before the full game is ready, often when it’s a little more than a team with the idea, and a refund on this property is extreme rarity. For example, in the case of Deadtropa, the players were forced Requirement of requests through their banks and credit card providers After the game, the studio was silent. However, not everyone was successful, because it was on the discretion of financial institutions.

However, the landscape of the crypto play changes, and the money to invest becomes harder.

“Three or four years ago, you had your random blockchain games with tokens and NFTs -it was much easier for you to get funds from different VCs and also get a traction from users,” Keith Kim, Chief of Strategy at Maplestory N Developer Nexpacesaid Decipher. “Because people were not too well -versed […] In aspects of sustainability, income and all these things. “

“It was kind of like: hey, take my money. I’m pretty sure it’s going to 10x or 100x,” he added.

Today, this hype died after countless examples of the crypts of the games that broke or did not fulfill their expectations. Recently, if additional funding has not been provided, the leading cause of the closure of the blockchain game, listed in many upper examples.

Mythical’s Linden – whose studio launched blockchain games like FIFA -in rival and NFL rivals– He delighted these feelings, claiming that he believed that playing the web3 was not focused on “basics”, and instead it focused on “hype and speculation”.

“There was simply no real game that would be a kind of avant -garde of quality,” said Veteran Games manufacturer John Smedley, who faced Everquest, Planetside and H1Z1, he said Decipher.

Smedley added that he believes that too much crypto of the games closes the door to traditional players, the audience is notoriously hostile to the integration of Blockchain. He said that ignoring this group of players, they significantly narrow their potential audience.

That’s why his crypto scorer who will start soon Reaument real,, It will include a market that operates for both traditional and crypto players, and the games in the game are offered as NFTs or traditional shopping in the computer market.

Similarly, one of the most successful blockchain titles in recent years, Out of networkalso allows playing games on platforms that are not acceptable like steamPlayStation and Xbox to expand their potential audience.

It is also worth noting that both these titles were launched after years of production that were mostly performed behind the scenes – with a network that requires alpha testers to sign strict NDA. It is a great contrast to some of the announced titles announced, and then started to release tokenized property before the game was somewhere near playing.

“It takes a while to make games,” Linden explained. “One of my good friends was one of the original creator of the Grand Theft Auto franchise, isn’t he? His new game is just coming out, and he works on it before we started mythical … We have been since 2018.”

To put it in perspective, Deadtrop has allowed people to play in the game UA phase before alpha as long as they bought a Founders pass nft for $ 50. It was in production for almost two years before it ended in the end, still seven years of shy production time, which Linden’s GTA co-creator sent for his latest project.

Krypticroloks, for a fraction of a fractional uprising for the pseudonym of the factional uprising Crypto Game Studio Decipher that the chipboard chipboard made immense pressure during production Crypto Battle Royale Sagittarius.

He explained that he would work 18 hours a day because he was forced to juggle the game by supporting the token, because investors threw out that his price would not increase quickly enough. Now there is a game stopped development In the midst of a lack of funding, with the creatives converted to a simpler game without the integration of token.

“We had so many expectations that we were doing things with a community sign. People are like” Pump a Token “, this or that and all they care about was the price,” said Krypticroox. “Adding Token is just a fucking nightmare.”

In a sense, Linden agrees, despite mythical games Myth token for your own Mitos Blockchain ecosystem.

He explained that the brackets related to small projects simply make no sense because of the demand for certain titles of video games that fluctuate over time. Linden said that the demand will be rejected from the game in the end, which will make the Token to be impossible for it. As such, mythical games do not betray “one game tokens,” said any property, in fact, before the game is ready to go out.

The opposite of Krypticroloks thinks more Tokens are ahead of front and pointed to last year’s launch appearance Pump.fun as the moment that changed everything.

“People do not have attention for individual tokens when you have 18,000 tokens that are released, which spread liquidity daily,” he explained. “They opened Pandora’s box.”

Pump.fun is a popular Solana Meme Coin Launchpad that allows anyone to create a token for free in minutes. According to Creation in January 2024. Dina datawas responsible for creating more than 11.8 million tokens and even launched Rival Launchpads who help to start thousands of more coins every day.

Some traders reacted negatively, pushing back against the floods of meme coins that were entering the market Excessive statement is negative for industry. Still, the trend persists and did not show the signs of stopping.

Krypticroloks said that the trend of Launchpad did more than the overpowering trenches; He also shortened the investor’s attention range – like a ticter, but for the crypto degens. As a result, the tokens for games bleed, such as an example, with none of the playing token that remains in Top 100 Crypto Currency per market cap.

“Attention extends [have] It has reduced even shorter because people are trying to capture market cycles that have been 10-15 minutes, “he said.” I think it’s hard to fuck the web3 play. “