Yield Guild Games Raises $4 Million to Power Its Play-to-Earn Proposal
Yield Guild Games, an online gaming guild, has raised $4 million to power its play-to-earn proposal in a Series A funding round. The funding round was led by Bitkraft, a venture capital company specializing in e-sports investments. Other blockchain and crypto-related companies also participated. The company plans to include more gamers in its activities with these new funds.
Yield Guild Games Raises $4 Million in Series A Funding Round
Yield Guild Games, an online gaming guild, has managed to raise $4 million in its series A funding round, according to a company blog post. The round was led by Bitkraft, an e-sports and interactive world venture capital fund. The funding round also saw participation from Atelier Ventures, Fabric Ventures, Greenfield One, IDEO CoLab, Mechanism Capital, ParaFi Capital, and Third Prime Capital.
With these funds, Yield Guild Games plans to further deepen its sponsorship of players. This will enhance its play-to-earn proposal. Yield Guild Game’s business model consists of putting the money behind players in profitable NFT-based games like Axie Infinity. In this way, gamers with little resources can benefit from their expertise in these interactive experiences, and investors also receive part of the profits made. Gabby Dizon, a co-founder of Yield Guild Games, stressed:
Our primary goal is to scale play-to-earn to millions of players around the world.
Yield Guild Games just had its seed financing round in March. Led by Delphi Digital, the Philippines-based company raised $1.3 million dollars at that time. Investors are becoming more and more attracted to these types of companies — ones that base their rewards on interactive worlds. However, only Axie Infinity has achieved 100K active users daily, a lot less than other traditional games. This makes them believe the play-to-earn movement has just started, and will keep growing over time.
Axie Scholarships and Their Effect
Yield Guild Games is one of the organizations advancing the concept of play-to-earn in its country. Play-to-earn games are interactive experiences that reward the player with in-game currency that can be traded for funds in the real world. However, these play-to-earn experiences have a significant entry cost. That’s where organizations like Yield Guild Games come in.
Yield Guild Games rent their NFT’s to players and obtain a part of the profits these generate by “farming” the native currencies of the games. This is known as a “scholarship,” and the demand for a slot in these structures is raging in countries like the Philippines and Venezuela. Being one of the few games that managed to establish an economy, scholarships for Axie Infinity are the most demanded.
The actual effect of these play-to-earn games has been positive so far. These games have become a legitimate source of income in countries hit by Covid-19 restrictions and inflation this year. Players have even bought houses with this income. More games introducing this kind of economy are expected to appear in the future.
What do you think about Yield Guild Games’ Series A funding round? Tell us in the comments section below.
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