SINGAPORE – A blockchain project developed for gamers has raised $20 million ($28.1 million) from prominent names in cryptocurrency and gaming despite headwinds in the digital currency sector.
Oasys, as the project is being called, expects to issue 10 billion tokens, with the private launch making up 10 percent.
These tokens can be used to offset transaction costs, purchase items and accessories that sell the games, and enable holders to make decisions about the project, among other things.
Oasys, which is based in Japan and Singapore, said the money would be used to solve problems such as slow transaction speeds and high costs.
The funds will also be used to strengthen partnerships with game developers and digital asset exchanges, increase the local workforce and run marketing campaigns.
Oasys has approximately 20 employees, most of whom are game developers and industry executives based in Singapore or Japan. A few others are in countries like South Korea and the United States.
The fundraising was led by blockchain financing and investment platform Republic Capital, which includes other entities such as trading firm Jump Crypto, exchanges Crypto.com and Huobi, and venture capital firm Mirana Ventures.
It comes as major crypto players face bankruptcy or restructuring, including hedge fund Three Arrows Capital, Singapore-based lender Vauld and broker Voyager Digital, following a plunge in crypto prices.
But Oasys director Daiki Moriyama told The Straits Times that “we’re not that heavily influenced by market movements,” adding that the game industry, in particular, is resilient.
“During a recession, people will spend more time at home looking for cheap forms of entertainment or generally looking for video games that operate on a longer business model and are good value for money,” Moriyama said.
The crypto market may be on the decline now, but he said his team is looking for better products for when the industry recovers.
The blockchain gaming industry is seen as an example of a use case for tokens.
The chief executive of Rainmaker Games noted in May that the video game industry, of which blockchain gaming is a part, was valued at US$336 billion by venture capital firm Bitkraft.
And an April report said the blockchain gaming industry has grown 2,000 percent in the past year. It added that the sector recorded $2.5 billion in investments in the first quarter of this year, compared to $4 billion in all of 2021.