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DeFi and Fun Element Can Boost Gaming, says Billion-Dollar Crypto VC

Key Takeaways
  • Framework Ventures' Michael Anderson suggests blockchain game developers need to create games that are enjoyable to play while also simplifying wallet setup procedures
  • Anderson highlighted the importance of game studios establishing multi-platform ecosystems and universes
  • As tech giants Apple and Google relax their restrictions on blockchain-powered games, opportunities for distributing web3 games on iOS and Android platforms have emerged
02-Aug-2023 By: Sudeep Saxena
DeFi and Fun Element

Billion-Dollar Crypto VC Suggest A Way to Boost Gaming

Since Framework Ventures announced at the beginning of 2017 that it has "earmarked" approximately $200 million for blockchain gaming, investment in cryptocurrency-enabled video games but there has been a slowdown. Moreover, according to the company's co-founder and partner Michael Anderson, this can eventually change if developers can find out how to unleash token potential, eliminate friction, and migrate across many platforms.

When asked to explain what must happen to revitalize the blockchain gaming industry, Anderson emphasized the same idea: create games that are "actually fun to play."

Although the appeal of having fun shall be more significant than generating money when it comes to persuading players to play blockchain-powered games. Whereas, the crypto component can still be important. With several intriguing games scheduled to launch in the upcoming months, Anderson said that the standout titles will probably "take a page from DeFi" and "rely on token models that accrue value generated by their ecosystems."

Simplifying the process of wallet setup

According to Anderson, if players do acquire valuable digital goods, they'll want to keep them safely, and that process should be made simpler. He also said that he's seen some testing that may indicate game makers are getting closer to expediting the registration process for players.

It's crucial for the gaming industry to find a way to convince regular customers to use web3 without burdening them with a complicated wallet setup, he added. We're optimistic that a solution will be discovered soon because we're already observing several games experiment with pre-funded wallets or temporarily paying for or subsidizing them on behalf of the players.

Anderson further talks about the attempts made by gaming companies to establish multi-platform universes. But, he has not specifically mentioned the name of any such successful company. 

The idea of studios building ecosystems and universes in which dwell many games that differ in platform, gameplay, and even complexity, he added, is one of the most pervasive concepts now in use. "With this model, web 3 game studios can penetrate the mainstream mobile gaming market."

Push to distribute Web3 Games on Apple and Google

Recently, as Apple and Google have reduced their restrictions on blockchain-powered games, there has been a move to distribute web3 games on iOS and Android mobile devices. That has sent "powerful signals for the future of mobile in this space," says Anderson.

Framework reported raising $400 million for its third cryptocurrency fund in April of last year, increasing the firm's total assets under management to $1.4 billion. At the time, it stated that it will devote around $200 million, or half of the fresh round, to the gaming industry. The venture capital business has financed video game initiatives including InfiniGods and Dynasty Studios.

According to K33 Research, web3 venture financing is down drastically this year compared to 2022, falling by 80% in the first quarter.

Also Read: FTX Bankruptcy Exit Plan Faces Creditor Backlash, Risks Liquidation

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