Blockchain Game

Aurory’s USDC pool drained on Arbitrum’s DEX Camelot

According to initial reports and on-chain data, the attack targeted Aurory’s SyncSpace bridge, draining nearly 80% of the AURY-USDC pool’s liquidity.

Solana-based gaming ecosystem Aurory was reportedly breached on Dec. 17, resulting in a drop of nearly 80% in liquidity of the AURY-USDC pool on the decentralized exchange (DEX) Carmelot.

According to unconfirmed reports on X (formerly Twitter), the exploit targeted Aurory’s SyncSpace bridge on Arbitrum’s native DEX Camelot around 13:00 UTC, reducing the liquidity of the AURY-USDC pool to roughly $312,000 from $1.5 million.

Cointelegraph reached out to Aurory’s team, but has yet to receive a response.

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How the crypto bull run can impact Web3 gaming beyond play-to-earn

Web3 gaming has remained unfazed by the bear season. But how does the expected bull run impact interest in blockchain-based games?

On-chain data tracker DappRadar recently reported that another $600 million was poured into Web3 gaming projects in Q3 2023, making the total investments surpass $2.3 billion in the year so far. 

Another report from the blockchain gaming community, Game7, indicates a stabilization in Web3 gaming despite the market correction.

The interest in Web3 gaming — a general term used to describe the ecosystem housing blockchain-based video games — is clear and remains unfazed by the so-called “crypto winter.”

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Game studios quietly integrate blockchain without the buzzword

Blockchain technology is facing backlash from players and gaming developers, forcing some studios to avoid “buzzwords” tied with Web3.

Cointelegraph was on the ground during the second edition of the Madeira Blockchain 2023, held between Nov. 30 and Dec. 1. The event explored regional Web3 developments, as well as how the Portuguese islands are looking for startups and tech talent to grow their economy in the digital age.

During a roundtable discussion at the conference, gaming studios working on blockchain features discussed the challenges associated with integrating the technology into games, including getting acceptance from developers, players and publishers.

Redcatpig is a Web3 game development studio, but the firm has run into obstacles in integrating the technology into its pipeline. “One of the toughest challenges I faced was communicating with my internal team to help them understand that this [blockchain] technology can greatly benefit gamers and enhance games,” noted Marco Bettencourt, the company’s CEO.

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NFT.NYC: Play-to-Earn is not dead, but game publishers are looking for alternatives

The Cointelegraph team was on the ground in New York to bring exclusive insights from the NFT event.

The play-to-earn (P2E) business model may not be dead, but game publishers and developers are exploring alternatives to replace it, according to a panel at the NFT.NYC 2023. The Cointelegraph team was on the ground in New York to bring exclusive insights from the NFT event. 

According to the CEO of gaming platform OP Games, Chase Freo, companies that branded themselves as P2E are shifting their strategy amid the crypto prices downturn. “It’s a model that is not sustainable at all,” he noted, citing Axie Infinity’s shift in some of its flagship titles as an example.

From left: Chase Freo, Minoru Yanai, Paul Flanagan and Paul-David Oosthuizen at the NFT.NYC 2023. Source: Cointelegraph

Minoru Yanai from Minto, a Japanese manga and anime design company, said that game companies are now “looking at play and fun, and sometimes earn or swap,” adding that players can still earn tokens and rewards, but publishers and developers are more focused on being sustainable and flexible.

Also speaking at the panel, Paul Flanagan, head of business development at Estonian mobile game developer CM Games, claimed the core problem with P2E models is that it is a “zero-sum.“ “As we all know, most of them are Ponzi schemes, so if you are putting branding sponsorship as a source of money, that might work, but we still need to see that happening,” he said.

Related: Play-to-Earn vs. Move-to-Earn explained

Alternatives flourishing in the industry include marketplaces and partnerships that allow players to return tokens to the game ecosystem instead of playing and liquidating them, the panelists noted. “More companies right now are trying to make sure that the game has a really good core loop that enables these players to put back whatever they earn into the game. That’s very challenging […]. I don’t think play-to-earn is ever going to come back, but there will be variations of how it’s going to look like in the future,” stated Freo.

Speakers on the panel also highlighted that the Web3 gaming industry is seeing more tangible products on the market following years of development. In East Asia, a better regulatory environment allows Web3 gaming companies to raise more funds and seek alternative business models and solutions to improve players’ experience.

Magazine: Why join a blockchain gaming guild? Fun, profit and create better games

Razer gaming incubator zVentures issues call for Web3 submissions

Gaming hardware giant Razer has issued a call for Web3 gaming submissions through its zVentures corporate venture capital arm.

Razer, a U.S.-Singaporean consumer electronics company best known for its gaming hardware and peripherals, has sent out a call for new Web3 partners and game submissions. 

Citing the market need for quality games built on blockchain technology, a zVentures blog post details Razer’s push for increased developer involvement.

“We believe that the foundation of any successful game (be it Web 2.0 or Web 3.0) is immersive and engaging gameplay,” reads the blog post, which goes on to state that “many blockchain games on the market today focus primarily on utilizing blockchain technology rather than creating an engaging and enjoyable gameplay experience, resulting in a lack of player interest and retention.”

Razer’s zVentures was established in 2016 as a venture capital fundraising arm intended to spur growth and innovation in the gaming industry — a market some analysts now claim is worth more than $300 billion globally. By comparison, the worldwide blockchain market is expected to surpass $100 billion by 2028, assuming it reaches its predicted compound annual growth rate of 55.8%. The growth of blockchain gaming is expected to be aided by major tech companies entering the space. Among them are IBM, Intel and Amazon Web Services.

Related: Chiliz announces $50M incubator and accelerator program for early-stage blockchain projects

According to zVentures, the incubator is looking for projects from new developers with a focus on “gameplay experience first,” as well as submissions from established industry veterans with a proven track record in creating “successful Web 2.0 games as they transition to incorporating blockchain technology and enter the Web 3.0 ecosystem.”

Paris Blockchain Week 2023: A net positive for the entire crypto industry

The theme of PBW revolved around the evolution of Web3 in the mainstream and the crypto industry’s past, present and future.

Paris Blockchain Week 2023 brought together some of the biggest names in the blockchain and crypto industry. Starting on March 21, the three-day event turned out to be a net positive for the crypto industry, with prominent industry players coming together to discuss and share their thoughts on the decentralized ecosystem’s past, present and future.

The Cointelegraph team was present on the ground to bring readers some behind-the-scenes content, exclusive interviews, insightful video bites from industry experts and more. Cointelegraph editor-in-chief, Kristina Lucrezia Cornèr; head of video, Jackson DuMont; and reporter, Joseph Hall, were tasked with bringing readers a bird’s eye view of the event.

The Cointelegraph team making sure you get the best angle

Father of the metaverse reflects on the industry today

Even before the main event kicked off on March 21st, the Cointelegraph team caught up with Neal Stephenson, an American author who first coined the term “metaverse” in the 1990s. Cointelegraph’s editor-in-chief sat down with Stephenson to reflect on the meaning of the word in today’s world.

Stephenson said that the meaning of the word has definitely changed. While reflecting on the failure of the metaverse to see mass adoption and very few takers in the bear market, he said that people and companies are skipping the important steps of building an economy first.

The first day of the event kicked off on March 21 and turned out to be eventful. The opening keynote speech by Ethereum co-founder Joseph Lubin reflected on the growing demand for a Web3-based payment infrastructure and the need for a decentralized solution in traditional finance.

Industry experts discuss the potential impact of MiCA

Among numerous expert panels throughout the day, the one that caught everyone’s attention was a discussion on the implications and potential impact of the European Union’s Markets in Crypto-Assets (MiCA) regulation.

Experts on the panel unanimously agreed that the upcoming regulations would help the European crypto industry overall. It would set a certain standard that other nations could potentially use in the future. Janet Ho, head of EU policy at Chainalysis, stressed the need for a review of the implementation and obligations of the law, and to consider feedback from government supervisors and industry participants.

Tim Draper has a song about the current banking crisis with a Bitcoin twist

The American venture capital investor Tim Draper took the stage at Paris Blockchain Week 2023 to talk about decentralization and the future of money. Draper addressed the ongoing banking crisis and promoted Bitcoin (BTC) to be the true capital hedge. In his keynote speech, he said:

“They have shaken our confidence in the banking system. […] What a really strong leader would do is build that trust back. Trust the banks that now remain and set them free.”

He also sang a Bitcoin song he had written four years ago but believed was more relevant today.

No shortage of passion in the Parisian people despite  nationwide protests

The PBW 2023 had no shortage of enthusiasm or energy despite the host country seeing nationwide protests following the French government’s controversial pension reforms. Cointelegraph reporter Joesph Hall talked to the CEO of Animoca Brands, Robby Yung.

Yung said that the local government had provided a “warm embrace” for crypto and blockchain enthusiasts amid a sea of protests. He told Cointelegraph:

“All of that stuff happening out there is why we’re here, to begin with […] The reason that we decided that decentralization was a better way to do things was precisely because of our concern as to what might happen in the financial sector, which continues to be borne out.”

The second day of the event was equally packed and full of energy, with the Cointelegraph team on the front line bringing the latest updates. The first major panel discussion revolved around the complicated relationship of ethics in Web3. The industry experts took to the stage to discuss how current innovations will shape the future of ethics in Web3. Loic Brotons, CEO of Galeon, said that mixing innovation and ethics is complicated and explained:

“Usually, innovation comes first, and sometimes we have really bad things happen. After comes the ethics because we look at what the innovation has done.”

The collapse of banks is a ‘crash course to Bitcoin’

Cointelegraph journalist Hall sat down with Ledger CEO Pascal Gauthier to get his view on what the current banking crisis teaches us. He said that the recent series of events show how BTC can be a safe haven against the threat of central authorities.

Ledger CEO Pascal Gauthier sits down with Cointelegraph at Paris Blockchain Week 2023

“Bitcoin was designed in reaction to Lehman Brothers in the 2008 crisis. It was designed because you can’t trust central authorities. And it’s designed because it’s clear that central authorities will fail. It’s not a question of if. It’s more a question of when.” Gauthier added.

Don’t trust anyone, verify: 1inch co-founder

In another exclusive interview with Cointelegraph, 1inch Network co-founder Sergej Kunz reflected on the need for self-custody. He said that the FTX saga helped people understand the importance of self-custody, and the current banking crisis only highlights the importance even further.

He also talked about the reasons behind a curtailed mass adoption of crypto, saying that people’s understanding and education would be the key to achieving this.

Magazine: US enforcement agencies are turning up the heat on crypto-related crime

Sony eyes NFT transfers across multiple game platforms, reveals patent

Sony’s NFT framework aims to integrate NFTs into gameplay, with the technology representing skins and other popular in-game functionalities.

Sony Interactive Entertainment, the video game goliath running the PlayStation brand, filed a patent for a framework allowing users to transfer and utilize nonfungible tokens (NFTs) across multiple game platforms. 

Over several years, Sony’s interest in crypto has been evidenced by numerous partnerships and trademark registrations. Adding to this list, Sony filed a patent titled “NFT framework for transferring and using digital assets between game platforms.”

Snippet of Sony’s NFT framework patent filing. Source: patentscope.wipo.int

Sony’s NFT framework aims to integrate NFTs into gameplay, wherein the technology can represent skins and other popular in-game functionalities. Summarizing the patent, the abstract explained the intended features:

“Responsive to the determination, the NFT is provided to the first end-user entity so that the digital asset may be used, via the NFT, across plural different computer simulations and/or across plural different computer simulation platforms.”

Moreover, it added that the NFT’s ownership could be transferred to other end-user entities for their own use across different simulations and platforms. The below diagrams detail Sony’s intended use of NFTs in gameplay.

Drawing depicting the workflow of Sony’s NFT framework. Source: patentscope.wipo.int

Once implemented, PlayStation 5 users will be able to experience NFT use cases via mainstream gaming titles. As of December 2022, the total number of active users on the PlayStation Network worldwide was 112 million, which continues to grow year-on-year.

Related: Theta Labs to help Sony launch 3D NFTs compatible with Spatial Reality Display

To understand what goes behind creating successful games, Cointelegraph recently interviewed former Age of Empires producer Peter Bergstrom.

“There are no black-and-white answers in game design,” Bergstrom said while highlighting that GameFi is about adding a new dimension of compelling gameplay to Web2 games.

According to him, gamers don’t care about the technology behind a good game. As a result, crypto entrepreneurs must incorporate “blockchain, NFTs, play and earn, AI [artificial intelligence], G5, or whatever to make a better game, and gamers will buy.”

Magazine: Justin Sun vs. SEC, Do Kwon arrested, 180M player game taps Polygon: Asia Express

Animoca Brands cuts metaverse fund target to $800M: Report

The company announced in November 2022 that it was working on a new Animoca Capital fund with a target of $2 billion but then halved that target in January 2023.

Hong Kong-based Animoca Brands, a developer of blockchain gaming technology, has reportedly cut its target for its metaverse fund by a further 20% to $800 million, Reuters reported, citing sources familiar with the matter.

The blockchain gaming technology company reportedly scaled back on its billion-dollar goal due to volatility in the crypto sector. The company had previously announced in November 2022 that it was working on a new Animoca Capital fund with a target of $2 billion but then halved that target to $1 billion in January 2023. 

In recent developments, people familiar with the matter shared that the company had once again reduced its target by another 20% to $800 million. Reuters shared that its sources preferred not to be named, as they had not been authorized to speak to the media.

Two sources reportedly disclosed to Reuters that Animoca’s market capitalization, which was previously valued at roughly $6 billion following a Temasek-led financing round in July 2022, has fallen to below $2 billion, with its shares trading at a considerably lower valuation in secondary markets.

The decreased fundraising target and declining valuation signal a change in sentiment on the crypto industry, as excitement around such technologies has dwindled following scandals ranging from the collapse of FTX to the bankruptcy of several crypto lenders. 

Related: GameFi needs a wider choice of products to take off, says Animoca Brands CEO

In 2022, Animoca Brand was named the most funded metaverse developer by Nasdaq, with Animoca having the most metaverse deals in 2022, closing 15 deals and receiving over $564 million in funding. 

Animoca, as a prominent player in the metaverse industry, holds a majority stake in The Sandbox, a leading metaverse platform. Apart from this investment, the company has actively participated in developing nonfungible tokens (NFTs) and GameFi. According to Yat Siu, one of Animoca’s co-founders, GameFi is expected to become one of the main gateways for the general public to access the metaverse.

CCP Games secures $40M funding for upcoming Web3 game

The financing was led by venture capital firm Andreessen Horowitz, with participation from Makers Fund, Bitkraft, Kingsway Capital and Hashed, among others.

Independent game developer CCP Games, known for its multiplayer online game Eve Online, has announced that it has secured $40 million in financing from external partners to develop a new AAA title set in the Eve universe. 

The financing was spearheaded by venture capital firm Andreessen Horowitz, with participation from Makers Fund, Bitkraft, Kingsway Capital, Hashed, Nexon and other investors.

According to CCP Games, the upcoming project will rely on blockchain technology and smart contracts to develop core game systems, prioritizing persistence and composability, and enabling open third-party development to connect players and virtual worlds. CCP Games aims to create a new relationship between virtual worlds and players by developing a game with a deeper level of player autonomy and agency. The developer believes blockchain technology will aid in that objective

Founded in 1997, CCP Games is headquartered in Reykjavik, Iceland and has additional studios in London and Shanghai.

Related: What are Web3 games, and how do they work?

Andreessen Horowitz, also known as a16z, is a leading venture capital firm that lost billions in the crypto industry in 2022. Despite suffering losses, a16z said it remained committed to investing in the crypto market and the Web3 vision of the internet. Speaking to The Wall Street Journal on Oct. 26, a16z general partner Chris Dixon said the crypto market downturn represented an opportunity to continue supporting crypto entrepreneurs and that the sector has a long-term horizon for growth.

On Jan 17, Carry1st, a mobile games publisher in Africa, raised $27 million in a funding round that saw participation from Andreessen Horowitz. The funding will be used to advance its publishing and digital content creation platform, as the backers believe that the African continent is ripe for Web3 adoption. 

Former Age of Empires producer talks blockchain game adoption and GameFi

Web3 gaming is the future, and mainstream veteran Peter Bergstrom reveals how the ecosystem can expedite the inevitable.

The crypto ecosystem has spent over a decade proving it can disrupt the status quo as crypto and blockchain technologies like cryptocurrencies, nonfungible tokens (NFTs), and blockchain-based games go head-to-head against their mainstream counterparts.

While Bitcoin (BTC) has managed to shoulder its way closer to mainstream adoption, the same cannot be said for other crypto subsectors. In the gaming world, blockchain games were afforded hype and passion similar to their mainstream competitors over the years.

However, challenging the status quo of an established industry is no easy feat. As a result, the blockchain gaming industry is tasked with delivering everything mainstream games offer, exceeding gamers’ expectations with new features and experiences.

Considering the potential of crypto innovations to disrupt the mainstream, the crypto community has not given up on GameFi — the fusion of gaming and finance. Building on the foundation laid by crypto entrepreneurs, mainstream gaming veterans have taken up the challenge to deliver a highly-anticipated comeback for the blockchain gaming industry.

For over 25 years, Peter Bergstrom worked at mainstream gaming publishers, including Microsoft Game Studios and Sony Interactive Entertainment. As a producer of Age of Empires, he saw what it takes for a game to make an impact across generations. Bergstrom has now stepped into the Web3 world to help bring blockchain gaming up to par with traditional video games.

In an interview with Cointelegraph, Bergstrom dives into the factors that make or break a game title. He shares his take on why blockchain games haven’t taken off, and what needs to be done to change that.

Cointelegraph: Despite evident setbacks over the years, both gamers and capital investors continue to bet big on the success of blockchain gaming and the GameFi ecosystem. Looking back and comparing it to the traditional gaming industry, what do you think is missing? Is there a need for rebuilding the ecosystem from scratch, or can we build on the existing winning formula known to the gaming industry for decades?

Peter Bergstrom: The traditional game business has had decades to invent and fine-tune what players find exciting:

  1. A compelling challenge and conflict 
  2. The balance between player strategy and how to deal with chance events 
  3. Aesthetics 
  4. Compelling themes and story 
  5. Rewards that are not just money based 

The GameFi ecosystem has not had time to come close to making items 1–4 compelling or competitive with traditional games. In regard to rewards, it seems GameFi has primarily relied on earning money/crypto and little else — very complex systems and not compelling to many players.

Besides, there are no GameFi publishers that can come close to competing with the online (or retail) distribution systems of iOS, Android, Steam, Xbox, Playstation and Nintendo. Additionally, too little effort has been made to make onboarding to a GameFi game user-friendly or to play the game easy. Ease of use has largely been ignored.

CT: Will mainstream titles eventually make their way into blockchain/Web3 gaming?

PB: Eventually, AAA game developers will integrate Web3 […] and make hit titles. By using non-traditional forms of distribution, perhaps through evolved social media, a new artificial intelligence (AI)-driven distribution platform, or an acquisition of an established Web2 publisher — Web3 gaming will eventually find a solid audience

CT: In your experience working for one of the most iconic titles — Age of Empires (AOE) — what was the most crucial factor that helped the AOE franchise develop a relationship with fans and gamers that spans generations?

PB: Age of Empires was and is great because you were allowed to choose your own pace of gameplay. The games begin with you expanding a civilian populace; then, you build a military force to protect them, expand the civilian populace to support the military, and gradually build your empire over the course of a match. Some Age of Empires skirmishes can last for hours because the series places more control in your hands by giving you more options, which results in a slower, more considered and strategic play style.

Age of Empires games come in three basic modes: single-player campaign, single-player skirmish and multiplayer. The campaign and skirmish modes are all about playing against the computer and trying to win a scenario. Multiplayer is a more frantic affair because players are craftier and focused more on total military domination than the computer.

Screenshot of Age of Empires Definitive Edition. Source: PCGamer

In Age of Empires, you can win peacefully by building and defending a wonder, like the Great Pyramid or the Colosseum, keeping it standing for 5–10 minutes, or by capturing relics, artifacts, and ruins and holding them for a set period of time. These win conditions have a lot in common with games like Civilization, emphasizing more than just military dominance.

CT: What’s more important for mass adoption — a good gaming experience or more rewards?

PB: Both — There are no black-and-white answers in game design. What makes the game business so successful is that brilliant game designers continually design new and different ways of gameplay and incorporate this into the rest of what’s already there seamlessly. This will surely happen with GameFi Web3 games as well. Not everything will happen at once but a little at a time by different game designers and developers.

CT: Many believe that gameplay, not payments, attracts gamers. Who is the primary target audience for the GameFi industry — crypto investors, gamers, or both?

PB: Obviously, gamers are the primary target — GameFi is about adding a new dimension of compelling gameplay to Web2 games. Crypto investors are the new Web3 financiers of games, venture capitalists (VC) and individual investors alike — as opposed to the traditional Web2 publishing funding model that is primarily controlled and monopolized by large tech companies.

CT: What are your thoughts on the claim that, unlike NFTs, the GameFi ecosystem has lower dependence on the price of cryptocurrencies?

PB: Because the GameFi tokens and its ecosystem is part of a proven business model that has experienced growth for 35 years, there are 3.09 billion gamers globally, generating $185 billion as of 2022. Some of these gamers will likely become early adopters of Web3 gaming (as we already have seen in the Philippines with Axie Infinity). Even a 1% slice of the game business amounts to 31 million players. Most business analysts look at the huge consumer installed base and likely incorporate that in their investment recommendations — thus incentivizing investors where they should put their investments.

CT: In your experience, what can blockchain games do to mend their reputation and come up to par with mainstream publishers?

PB: Players don’t care about the technology behind a good game. Drop the blockchain/NFT/play-to-earn (P2E)/metaverse/Web3 talk. Make a good game and invisibly incorporate blockchain, NFTs, play and earn, AI, G5, or whatever to make a better game, and gamers will buy. They don’t care if it’s a Unity or Unreal engine in the game — as long it’s a good game. They just want to have an entertaining playing experience — not a science lesson.

CT: What is the fastest way to GameFi adoption — Mobile, PC, consoles, virtual reality (VR)? And what does the full potential of GameFi look like to you?

PB: When it comes to expedited GameFi adoption, PC takes the cake because it is the least monopolized by tech giants that oppose Web3 gaming. It is also not hardware sales-dependent like VR. However, your guess is as good as mine when it comes to predicting the future. That is for our brilliant game designers and developers out there to create.

CT: Finally, what is your advice for the GameFi ecosystem entrepreneurs and developers?

PB: After the investment boom in 2021 and 2022, 2023 is about cutting costs and lengthening your financial runway, then building your game and inventing new, more attractive solutions to the gameplay while you wait for the VC money to reappear. Also, network for connections, alliances and partnerships with companies that are synergistic for you in your space. Exchanges, Tier 0,1,2,3 blockchains, metaverse builders, avatar plugins, Web3 game publishers, middleware providers etc., and, of course, never stop looking, and make friendly contacts with VCs and other investors.

Bergstrom ended the discussion by highlighting that gaming will be the single biggest consumer application of blockchain in 2023, bar none — given the size of the total gaming market and current momentum.