[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Richie [@skullrichy](/creator/twitter/skullrichy) on x 2099 followers Created: 2025-05-21 07:33:06 UTC In just one week (May 2025), four major Web3 games shut down: •@nyanheroes •@blastroyale •@RumbleKongs •@tatsumeeko Together, they raised over $20M. So what went wrong? Let’s dive into the data, the reasons, and what’s next. Let’s start with the Major Shutdowns This Month Here’s a quick snapshot of what we lost: •Nyan Heroes ($13M raised): Shut down after failing to secure final funding. •Blast Royale ($5M): Killed by app store policies + low engagement. •Rumble Kong League: Quietly sold after token failure + team exits. •Tatsumeeko: Another RPG that couldn’t survive. These weren’t rugpulls they were real projects with real teams. ⸻ According to ChainPlay: •93% of Web3 games launched since 2017 are now dead. •2,981 out of XXXXX projects lost 99%+ of activity. •In 2023 alone, XXX of XXX new games failed (71%). And 2024–2025 has been even more brutal. Why did so many of these games fail? Some common themes: •Reliance on VC funding that dries up. •Poor gameplay too focused on tokenomics. •Repetitive play-to-earn mechanics that burn players out. •App store bans + Steam’s Web3 restrictions. Gaming in Web3 is fighting on multiple fronts. Here are some of the numbers behind the Crash •$19B was invested into Web3 gaming since 2018. •But funding crashed: only $1.5B in 2023, and less than that in early 2025. •Players? Many are airdrop hunters, not gamers. Nyan Heroes had 1.3M signups but not enough stayed. ⸻ The Case Studies: ➢ Nyan Heroes This was a AAA shooter on Solana with cats in mechs. •1M+ players in playtests •250K wishlists •6.7M $NYAN tokens airdropped Retention dropped. Funding disappeared. And just like that, it died. ➢ Blast Royale: Open Source, Closed Chapter Raised $5M, launched on Polygon, pivoted to Immutable. •Aimed to be mobile-first •Struggled with iOS/Android store rules banning crypto features •Team will open-source the game code on June X Too little, too late? ➢ Rumble Kong League: Even Steph Curry Couldn’t Save It NBA-backed, $FAME token economy, slick branding. •But token liquidity tanked •Core team left •Quietly sold to a Brazilian company in May 2025 Another case of hype > substance. It’s Not Just Them, Even big Web3 studios like: •Xterio (raised $80M) •TreasureDAO …have seen major cutbacks or shutdowns. The dream of “player-owned economies” feels more like VC-owned hype. Gamers aren’t staying. The tokens aren’t holding. The fun isn’t there. Still, There’s Hope Some Web3 games are still winning: •Pixels: 2M+ wallets, simple farming game, low friction •Off the Grid: Surging on Epic Games Store •The Sandbox: Surviving with big IP (e.g., Jurassic World) These games focus on gameplay first, crypto second. What We’re Learning Web3 gaming success = • Fun gameplay • Sustainable, optional tokenomics • Better onboarding (Web2.5 approach) • Avoiding overpromising airdrops + unsustainable rewards The next wave of games must feel like games and not finance apps. The lessons are clear. Founders and builders should remember: • Fundraising ≠ Product • Airdrops ≠ Players • Hype ≠ Fun  XXXXX engagements  **Related Topics** [20m](/topic/20m) [$13m](/topic/$13m) [$20m](/topic/$20m) [blastroyale](/topic/blastroyale) [nyanheroes](/topic/nyanheroes) [web3](/topic/web3) [Post Link](https://x.com/skullrichy/status/1925092473073729551)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Richie @skullrichy on x 2099 followers
Created: 2025-05-21 07:33:06 UTC
In just one week (May 2025), four major Web3 games shut down:
•@nyanheroes •@blastroyale •@RumbleKongs •@tatsumeeko
Together, they raised over $20M. So what went wrong? Let’s dive into the data, the reasons, and what’s next.
Let’s start with the Major Shutdowns This Month Here’s a quick snapshot of what we lost:
•Nyan Heroes ($13M raised): Shut down after failing to secure final funding. •Blast Royale ($5M): Killed by app store policies + low engagement. •Rumble Kong League: Quietly sold after token failure + team exits. •Tatsumeeko: Another RPG that couldn’t survive.
These weren’t rugpulls they were real projects with real teams.
⸻
According to ChainPlay:
•93% of Web3 games launched since 2017 are now dead. •2,981 out of XXXXX projects lost 99%+ of activity. •In 2023 alone, XXX of XXX new games failed (71%). And 2024–2025 has been even more brutal.
Why did so many of these games fail?
Some common themes:
•Reliance on VC funding that dries up. •Poor gameplay too focused on tokenomics. •Repetitive play-to-earn mechanics that burn players out. •App store bans + Steam’s Web3 restrictions. Gaming in Web3 is fighting on multiple fronts.
Here are some of the numbers behind the Crash •$19B was invested into Web3 gaming since 2018. •But funding crashed: only $1.5B in 2023, and less than that in early 2025. •Players? Many are airdrop hunters, not gamers. Nyan Heroes had 1.3M signups but not enough stayed.
⸻
The Case Studies:
➢ Nyan Heroes This was a AAA shooter on Solana with cats in mechs. •1M+ players in playtests •250K wishlists •6.7M $NYAN tokens airdropped
Retention dropped. Funding disappeared. And just like that, it died.
➢ Blast Royale: Open Source, Closed Chapter Raised $5M, launched on Polygon, pivoted to Immutable. •Aimed to be mobile-first •Struggled with iOS/Android store rules banning crypto features •Team will open-source the game code on June X Too little, too late?
➢ Rumble Kong League: Even Steph Curry Couldn’t Save It NBA-backed, $FAME token economy, slick branding. •But token liquidity tanked •Core team left •Quietly sold to a Brazilian company in May 2025 Another case of hype > substance.
It’s Not Just Them, Even big Web3 studios like:
•Xterio (raised $80M) •TreasureDAO …have seen major cutbacks or shutdowns.
The dream of “player-owned economies” feels more like VC-owned hype. Gamers aren’t staying. The tokens aren’t holding. The fun isn’t there.
Still, There’s Hope Some Web3 games are still winning: •Pixels: 2M+ wallets, simple farming game, low friction •Off the Grid: Surging on Epic Games Store •The Sandbox: Surviving with big IP (e.g., Jurassic World) These games focus on gameplay first, crypto second.
What We’re Learning Web3 gaming success = • Fun gameplay • Sustainable, optional tokenomics • Better onboarding (Web2.5 approach) • Avoiding overpromising airdrops + unsustainable rewards
The next wave of games must feel like games and not finance apps.
The lessons are clear. Founders and builders should remember: • Fundraising ≠ Product • Airdrops ≠ Players • Hype ≠ Fun
XXXXX engagements
Related Topics 20m $13m $20m blastroyale nyanheroes web3