Web3 Gaming Faces Closure: Ember Sword's Bitter Lesson
In a striking turn of events, the Web3 MMORPG Ember Sword, developed by Brightstar Studios, was abruptly shut down on May 21, 2025. This closure comes amidst a challenging period for the Web3 gaming sector, with declining investor interest and a tougher funding environment.
Ember Sword initially garnered attention with its vision of a player-driven economy powered by blockchain technology and NFTs. The project managed to raise approximately $7.1 million in investor funding and secured pledges worth $203 million from 35,000 gamers for 40,000 virtual land NFTs, with $11 million realized in sales. However, the project's inability to navigate these challenges underscores the precarious nature of the industry.
The game launched its native token, EMBER, on June 13, 2024, for players to earn rewards through in-game activities. Unfortunately, EMBER has since crashed over 50% in the last 30 days, or down 99% from its peak on Jun 14, 2024. The NYAN token of Nyan Heroes, another Web3 game, has also experienced a similar fate, decreasing by 99% in value from its all-time high.
Criticism towards Web3 projects includes the tendency to overpromise with "giant projects" without delivering functional games. Many users label Ember Sword a "pure scam," pointing to the rapid depletion of funds. However, it's important to note that a successful $1.5 million land sale took place in May 2023, though it faced technical challenges due to overwhelming demand.
The game rolled out its Origins Collection NFT launch and offered early access gameplay in December 2024. Despite early traction, Ember Sword struggled to sustain its momentum and could not secure enough funding to continue development. This shutdown highlights the volatile nature of Web3 gaming projects.
Indeed, the Web3 gaming sector has faced headwinds since the NFT boom of 2021. A 2023 CoinGecko report revealed that 75.5% of Web3 games launched between 2018 and 2023 failed, with an average annual failure rate of 80.8%. The Chainplay 2024 report analysis of 3,279 GameFi projects found that 93% are dead, having either dropped 95% from their all-time high or fallen below 100 daily active users, with an average lifespan of just 4 months.
At least 16 web3 games are either paused, shut down, or were set to close in 2025, including Blade of God, Metalcore, Blast Royale, Nyan Heroes, and others. This shutdown of Ember Sword is not an isolated incident but rather a reflection of the broader market context that also played a role in the struggles of projects like Ember Sword.
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