$35 million raised for an NFT game marketplace

The Twitch co-founder’s Fractal company Justin Kan raised $35 million to create an NFT marketplace focused on video games. It was in San Francisco that the company opened a marketplace for video game players to buy and sell non-fungible tokens, offered by the early collections of gaming companies to their audience. Among the investors, we find for example Paradigm with Matt Huang who will join the board of directors of the company, but also Multicoin Capital or Andreessen Horowitz and many others, who participated in this first round of funding. These first investments come two months after Fractal was announced to launch to the public on December 30, 2021.

35 million to develop the world of NFT gaming

These new funds will be used to recruit and finance game developers, improve an ecosystem of GameFi participants, but also to hire more engineers essential to this project. In addition, Fractal is very meticulous and demanding in the choice of Web3 games participating in its project. After checking the quality, only 5 percent of the applicant games are accepted, explained Justin Kan. There are real-time strategy games like House of Sparta, racing games like Yaku, but also online role-playing games like Cinder and Nekoverse. The co-founder of Twitch explained his choice in these terms: “ I wanted to associate myself with the coolest games of the moment “.

An arduous task that is met with resistance to NFTs

Another reason for this selective choice of “best video games on the Web3” is the resistance on the part of some gamers and game developers to NFTs. One example is Ubisoft, which experienced this in December 2021, when its fans received its collection of NFTs for Ghost Recon very badly. But it’s not the only gaming company that has faced this kind of rejection.

The risks of hacking

Other risks are added to this mistrust on the part of players: Fractal indeed suffered a security breach when it was launched in December 2021. A hacker hacked into the Discord community announcement robot, which sent a scam link to thousands of users. The bill for the newly created company came to $150,000. These kinds of flaws are a major risk in the blockchain world. Sky Mavis experienced this recently when hackers stole $624 million in Ethereum from the Ronin network of the game Axie Infinity.

Fractal wants to be “a trusted marketplace for the best blockchain games” said Justin Kan again. To deal with the rejection of NFTs in gaming by some players and the risk of hacking, the company has invested considerably in the security of its marketplace and precisely selects the video games that can integrate it. The project appears to be paying off, as the games’ NFT collections have already raked in over $2 million in the initial sale.

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Gregory Morat

Student passionate about entrepreneurship and fascinated by the technologies behind cryptos! And yes, I am convinced that the two are intimately linked: blockchain and NFTs are revolutionizing many sectors and presenting unprecedented opportunities.

We want to thank the writer of this short article for this amazing material

$35 million raised for an NFT game marketplace

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