An up-and-coming contender in the blockchain gaming industry, Gameplay Galaxy has now secured $11.17 million in a seed extension round. This latest funding round elevates the company’s total valuation to $71 million and brings its total funding to $24 million. Co-led by Blockchain Capital and Merit Circle, the seed extension round will chiefly finance the development of Trial Xtreme Freedom, the company’s first blockchain-based game. However, the company has a much loftier goal in mind: redefining how gamers interact with digital assets in an extreme sports ecosystem.
The Role of Token Warrants in Blockchain Gaming Investments
The design of this funding round has raised a lot of eyebrows in the blockchain community. It wasn’t just an equity round like those typically seen in the gaming and tech industries. Nor was it a simple ICO, as one might expect from a blockchain-based company. Instead, the Gaming Galaxy employed a hybrid structure that featured both equity and token warrants. According to my sources, this setup of the round has made many in the blockchain community sit up and take notice.
Investment in token warrants is a mix of equity and tokens, which allows an investment proposition to be attractive and flexible. Traditionally, equity investments secure ownership, on which a claim can be made to the future earnings of a company. Token warrants are a sort of next-generation upgrade on that model. They mix the security of equity with the upside potential of fully appreciating tokenized assets, particularly in markets like blockchain gaming that are rapidly maturing.
Gameplay Galaxy’s Business Expansion
With the fresh influx of funds, Gameplay Galaxy will accelerate its plans for further expansion. The company aims to break into new gaming markets and has plans to unveil a new business model in the coming months that could help it build key partnerships with major brands and gaming influencers. This strategic refocus could help the company enlist high-profile partners and elevate its brand even further in the blockchain gaming space.
Trial Xtreme Freedom, a blockchain-based game from Gameplay Galaxy, is set to be fully released in Q1 of next year. The game is currently in its soft launch phase and stands apart from traditional gaming platforms through its integration of web3 elements, such as blockchain-based progression and ownership of digital assets. Part of the funding received will go towards simplifying the onboarding for Web2 users and integrating wallets and other web3 functionalities.
Market Impact and Future Prospects
Blockchain gaming represents the next natural step in the evolution of the gaming industry, according to Doron Kagan, co-founder and CEO of Gameplay Galaxy. The studio aims to position itself at the forefront of this new era by combining the features of web3, or the decentralized web, with traditional gaming mechanics.
With its platform steadily growing and user base expanding, Gameplay Galaxy’s valuation stands to increase. Building on its current momentum, the company plans to enroll a number of major brands and KOLs to its platform and, hence, increase its user base. This bodes well for the future adoption and valuation of the platform.
In conclusion, the recent investment round for Gameplay Galaxy, which was backed by a token warrant structure, may well indicate the future direction of investment in the blockchain gaming sector. As companies within the blockchain gaming space continue to play with hybrid models, the potential for increased return alongside equity security makes token warrants a seemingly natural fit for gaming investments.
Editor’s note: This article was written with the assistance of AI. Edited and fact-checked by Owen Skelton.
