Yield Guild Games Raises $13.8M in a Funding Round Co-Led by A16z Crypto and DWF Labs
- Yield Guild Games (YGG) has recently closed a $13.8 million token sale, which attracted capital from big firms such as A16z Crypto and DWF Labs.
- The capital will be used for the development of YGG's Soulbound Reputation Token (SBT).
- The success of YGG's fundraiser indicates that play-to-earn blockchain gaming is still a very popular segment of the industry.
Yield Guild Games (YGG) has revealed that it has raised an additional $13.8 million in a funding round co-led by A16z Crypto and DWF Labs. This marks A16z's second big investment in YGG, after the Web3-focused venture capital firm was one of YGG's earliest supporters that participated in the $4.6 million funding round already back in 2021. Other participants in the most recent token sale include Galaxy Interactive, Sangha Capital Fund, Sanctor Capital, and angel investor and former corporate attorney at Google, David Lee.
Web3 #gaming just got a power-up with our $13.8m round led by @DwfLabs w/ participation from @a16zcrypto @SanctorCapital @SanghaCapital @glxydotgg ?
— Yield Guild Games (@YieldGuild) February 17, 2023
Join the community Update AMA with the YGG Core team tonight!?
Check out the full article below!?https://t.co/DAqKG5rVeR
As YGG did not disclose the exact number of tokens sold as part of the latest token sale nor the price at which the tokens were sold off, we can only speculate that the sale accounted for around 35% of the total value of assets in YGG's treasury. Nevertheless, even after the latest sale, YGG is estimated to control around 45% of the firm’s token’s maximum supply.
Funds will be used to accelerate the development of the Soulbound Reputation Token
The capital raised from the latest funding round will reportedly be used to accelerate the development of YGG's Soulbound Reputation Token (SBT). The SBT will serve as proof of someone's achievements and reputation in the blockchain gaming ecosystem. As the name implies, SBT will be non-transferable and therefore permanently linked to a person's wallet. In addition, YGG has already test-launched the SBT tokens to a part of its community as the tokens were placed as rewards for completing certain in-game activities. In addition, YGG is expected to launch a new and improved version of its web app in March 2023, in which the novel Soulbound Reputation Token is expected to play an important role.
YGG's fundraising success highlights the growing popularity of play-to-earn gaming, which has emerged as a promising use case for blockchain and cryptocurrencies. In fact, play-to-earn gaming quite quickly became a lucrative industry, allowing many people to earn a living income, especially in developing countries, where traditional employment opportunities are scarce. As the P2E industry continues to grow, companies like YGG will likely play a pivotal role in shaping its future.
About Yield Guild Games
Yield Guild Games is a play-to-earn game guild DAO that focuses on earning yield through blockchain-based games. The income is generated through the sale and rental of in-game assets as well as investments into metaverse assets, NFTs and blockchain gaming in general. The DAO started off as a scholarship program for the popular NFT game Axie Infinity and has enabled players in the Philippines to make a living by playing this game. Today YGG is the largest in-game asset manager and investor in Axie Infinity. Over time YGG has grown far beyond Axie Infinity and today the Guild participates in many other play-to-earn (P2E) games such as Zed Run, Aavegotchi, Guild of Guardians, Star Atlas, and more.