Yield Guild Games (aka YGG) has secured $4 million from multiple venture capital firms and angel investors as the company moves to expand its network and promote its pay-to-play model, Cointelegraph reported on June 17.
The company announced Wednesday that the recent cash infusion will be used to invest in non-homogenized tokens or NFTs (game-earning assets.) YGG describes itself as a decentralized guild of gamers who earn revenue from NFT-based games.
The first round of funding was led by BITKRAFT Ventures, a venture capital firm focused on eSports. A.Capital Ventures, IDEO, CoLab, Mechanism Capital and ParaFi Capital also participated, as did several angel investors.
Gabby Dizon, co-founder of YGG, further explains the rationale behind the association:
At its core, YGG is a community of paying gamers. For example, we can think of it as a massively multiplayer online (MMO) guild, but it spans several games, invests in revenue-generating NFTs in those games, and lends those in-game assets and inventory to our player base.
Jens Hilgers, founding partner of BITKRAFT Ventures, believes that games and virtual worlds are a hotbed of real economic activity. He said.
Yield Guild is the catalyst for this shift, offering a very forward-looking concept around a novel game-earning game model.
Blockchain technology and gaming are two fast-growing industries that will converge in a more direct way in the coming years. According to industry data, the global gaming industry generated nearly $178 billion in revenue in 2020. Meanwhile, the blockchain space continues to attract new investors, business models and use cases, as evidenced by its soaring market capitalization.
This “play first, earn later” model is ideal for blockchain-based games that enable true digital asset ownership through NFTs. While the “play-and-earn” model is viable in traditional cryptocurrency systems, it is difficult to implement without using blockchain, cryptocurrency or NFTs.
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