The gaming industry is set to release a massive crop of games in 2024, following a few years of development since the last bull cycle, with game developers reimagining business models to attract and retain players amid growing competition.
Metaverses, nonfungible tokens (NFTs) and even play-to-earn features are still on the table for some studios. Game developer Illuvium, for instance, is working on an interconnected environment that will combine three different titles under the same experience.
In addition, Illuvium’s upcoming release will offer a revenue-sharing model. “We take all the in-game revenue from players spending to travel, cure shards, purchase cosmetics, and fuel and then use it to buy ILV off the market. We then take the ILV and distribute it to stakers in the protocol. The longer you stake, the higher the amount you receive from each distribution,” Kieran Warwick, Illuvium’s co-founder and CEO, told Cointelegraph.
The platform recently raised $12 million to support the gaming launch, which is scheduled for the second quarter of 2024. “The gaming market is about to explode,” predicts Warwick.
Venture capital (VC) firm Andreessen Horowitz is in the same boat. It recently announced it would inject $30 million into the intersection between tech and gaming.
Along with the revived sentiment surrounding the gaming industry, this week’s Crypto Biz explores Binance’s new (and first) board of directors, Paradigm’s new crypto fund and how miners are gearing up for the Bitcoin halving.
Andreessen Horowitz to invest $30 million in tech-fueled gaming startups
Venture capital firm Andreessen Horowitz (a16z) has announced it will invest $30 million in technology-centric gaming startups, including artificial intelligence (AI), virtual and artificial reality (VR/AR) and Web3 games. “We are investing at the intersection of TECH x GAMES, which means AI/infra, 3D tools, VR/AR, web3 games, gamified consumer apps, and much more,” said Andrew Chen, a general partner at a16z, who oversees a16z’s Games One Fund. The $30 million will be invested across the next 45 days via the firm’s early-stage accelerator “SPEEDRUN” program, Chen said in an April 1 X post, with $750,000 handed out to each startup that joins the program.
Binance forms board of directors for the first time
Binance Holdings, which operates the cryptocurrency exchange of the same name, has formed a seven-person board of directors filled with company executives and independent members. According to Binance’s website, the firm’s board of directors is now chaired by Gabriel Abed, the former ambassador of Barbados to the United Arab Emirates. Other members included Binance CEO Richard Teng, Binance co-founder Heina Chen, Bayview Acquisition Corp CEO Xin Wang, Gojo & Company managing partner Arnaud Ventura, Roger Wang and Rock He. The board’s formation is likely one of the most significant changes to Binance’s leadership since Teng moved from his position as head of regional markets to become CEO in November 2023.
Crypto VC Paradigm seeking up to $850 million raise for fund: Report
Crypto VC firm Paradigm is reportedly negotiating a raise of up to $850 million for a new fund. Paradigm is discussing with investors to raise between $750 million to $850 million as crypto markets have returned over the past months, Bloomberg reported on April 3, citing people familiar with the matter. If Paradigm completes the raise, it would be its largest since it raised a $2.5 billion fund in November 2021 at the peak of the last cycle’s bull run — which was the largest cryptocurrency fund ever at the time. Some of Paradigm’s most notable Web3-related investments include Coinbase, Fireblocks, Blast, Optimism, Uniswap, Gitcoin and Friend.tech.
Bitfarms announces $240 million mining upgrade to triple post-halving hash rate
Bitcoin (BTC) mining company Bitfarms will invest nearly $240 million to upgrade its mining equipment as it aims to remain profitable after the upcoming Bitcoin halving. Bitfarms earned 286 BTC through mining in March 2024, with a monthly operating hash rate of 6.5 exahashes per second (EH/s). In March 2023, the firm mined 424 BTC with 4.8 EH/s — indicating the importance of increasing hash rate capacity to stay profitable in Bitcoin mining. Bitfarms sold nearly all the Bitcoin it mined over the past two months as it continues to reinvest into growing its mining fleet.
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