On October 31st, VanEck announced its private crypto fund has invested in gaming startup Gunzilla Games. This marks the asset manager’s second bet on Web3-enabled gaming.
About Gunzilla Games and Off The Grid
Gunzilla is the creator of Off The Grid, a dystopian cyberpunk shooter where players earn Gunzilla’s native GUN token. According to Matt Maximo, VanEck’s representative, "We see crypto as a tool to enhance gaming experiences and improve monetization strategies."
The Gaming Industry Sees Significant Investment
In the third quarter of 2024, gaming startups attracted $517 million in investment, according to data from Konvoy, a venture capital firm. This influx of capital highlights the growing interest in Web3-enabled gaming.
VanEck’s Previous Investment in Parallel
In March, VanEck invested in Parallel, a Web3 card game where tradable cards are represented onchain as non-fungible tokens (NFTs). The $35 million funding round also included contributions from Solana Ventures and Coinbase’s Base Ecosystem Fund.
Maximo’s Vision for Gaming and Blockchain
As Maximo noted, "Gamers have been building systems to enable selling of in-game items for decades." He added that Steam’s peer-to-peer gaming marketplace has seen more than $32 billion in trading volume. "Blockchain can solve gamers’ desire for transparency and control over in-game items," Maximo said.
Off The Grid Gameplay and GUN Token Usage
In Off The Grid, players earn GUN tokens, which unlock in-game items that players can hold in Web3 wallets. Players also use GUN tokens to purchase in-game items directly on Off The Grid’s Web3 marketplace. Gunzilla’s marketplaces are operated on an Avalanche (AVAX) subnet called GUNZ.
The Impact of Blockchain on Gaming
As Maximo explained, "The blockchain component of OTG is a technical solution to creating a marketplace for players to trade cosmetic items — an ultra-successful model pioneered by Steam" and others. This innovative use of blockchain technology aims to provide transparency and control over in-game items.
Gunzilla’s Creative Team and VanEck’s Investment Strategy
Gunzilla brought on Richard Morgan, author of Altered Carbon, and director Neill Blomkamp to lead Off The Grid’s creative design. In 2022, VanEck launched its Digital Asset Alpha Fund to invest in liquid tokens using traditional valuation methodologies.
Conclusion
VanEck’s investment in Gunzilla Games marks the asset manager’s continued interest in Web3-enabled gaming. As the gaming industry continues to grow, it will be interesting to see how blockchain technology is integrated into future games and marketplaces.
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