Animoca Brands Optimistic About Blockchain Gaming Sector
While waiting for a license to launch its metaverse fund, the company continues to back multiple gaming projects set to release by the end of 2023.
Blockchain Gaming Sector Gains Momentum
Animoca Brands emerged as a leader in the blockchain gaming sector when blockchain-based games gained popularity in the crypto space. As the sector expanded and attracted more users, the company's products garnered attention from investors.
Web3 gaming secured approximately $4.5 billion in funding last year, with asset managers, venture capitalists, and investment funds recognizing the opportunities in blockchain gaming. The sector's growth and potential have attracted institutional investors seeking innovative gaming approaches.
Animoca Brands' Metaverse Fund Journey
Animoca Brands proposed a metaverse fund in November 2022 to invest in mid to late-stage startups dedicated to building metaverse products. However, the company is still awaiting the necessary license to proceed with its creation. The initial $2 billion fund was scaled back to $1 million in January and reportedly further reduced to $800 million in March due to crypto market volatility.
Despite the licensing hurdle, Animoca Brands has made numerous investments and currently has over 450 portfolio companies. Co-founder Yat Siu expressed optimism about upcoming AAA titles backed by the company, with several expected to be released by the end of the year. Siu emphasized that immediate breakout success is not the sole measure of success, highlighting the importance of games being built on open protocol systems like Polygon and Ethereum.
The quality of upcoming blockchain games is closely tied to the underlying blockchain infrastructure. Scalable protocols like Polygon and technological advancements such as zero-knowledge proofs have enabled developers to create more sophisticated and improved gaming experiences.