Blockchain Game Shrapnel Completes $7M Token Sale
Independent Games studio Neon has raised $17.5 million so far to bring Shrapnel to Avalanche. The game is a “blockbuster” title that features an avalanche mechanic. The game was originally pitched as a $5 million project on Kickstarter, but after failing to reach its funding goal, the team turned to private investors and completed a $7 million token sale on the Avalanche blockchain platform.
Dragonfly and Three Arrows Capital backed Neon to complete a $7 million token sale. The $17.5 million just raised is an increase from last year’s fundraising of $10.5 million. The funds raised from the token sale will be used to finance the development of the game, as well as marketing and community-building efforts.
Shrapnel, a futuristic shoot-’em-up game built on the Avalanche blockchain. The game is set in a post-apocalyptic world where players must use blockchain-based weapons to survive.
The game is being developed by Neon games, a subsidiary of Dragonfly, which is also behind the popular Neon District role-playing game.
Dragonfly is one of the most active investors in Avalanche, having invested $3 million in the project last year. Three Arrows Capital, another early investor in Avalanche, also participated in the token sale.
Avalanche is a platform that enables developers to create decentralized applications and launch their own digital currencies. The platform is designed to be scalable and efficient and can handle up to 10,000 transactions per second. Avalanche is a smart contract platform that supports multiple virtual machines including Ethereum’s EVM. The mainnet went live in September 2020. Transactions on Avalanche are near-instant and fee-less. The mainnet boasts of over 300 dApps and 3,000 assets. The aim is to create an ecosystem where developers can launch new protocols quickly without the need for a hard fork.
The Shrapnel token sale is the latest example of how developers are using Avalanche to raise funds for their projects. GameFi is still in its early development days, suggesting a need for caution and optimization regarding tokenomics infrastructure and greater interoperability.
Ed Chang, director of gaming at Ava Labs, the developer of Avalanche explained that, “We have some game developers who are seeing this as almost like a publishing opportunity. If they can build a meaningful enough subnet following for their game, they can attract other games to deploy on their subnet as well. So if they have the other games using their token, there’s more value and governance attributes.”
Shrapnel is the first game on Avalanche and is developed by neon>brightsun, a studio based out of Seoul, South Korea. The team has experience with PC and mobile games development having worked on Call of Duty: Online and Lineage 2M. The game was soft-launched in South East Asia in October 2020.
Blockchain gaming is on an uptrend over the last 16 months owing to the NFTs and metaverse craze. NFT transactions have since cooled down, but the GameFi side of the industry continues the uptrend.