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Game studio Phat Loot raised more than $ 500,000 for the development of the MMO game Untamed Isles. The company invested the money received in cryptocurrencies and lost them with the advent of the recession on the market.
New Zealand game developer Phat Loot launched a Kickstarter crowdfunding campaign in 2021 to raise funds for the development of the MMO Untamed Isles. In a few months, the startup raised almost $ 530,000 and the company began to create a game. In early August, Phat Loot announced that it was taking pre-orders ahead of the game’s release on October 6. However, later the developers reported that they were leaving for a break, as the company had financial difficulties.
It turned out that the studio’s managers invested the collected money in cryptocurrencies. As stated by the founder and head of Phat Loot Joshua Grant (Joshua Grant), during some period of development it helped the company to pay for the creation of the game and the work of employees, but after a sharp collapse of the market in the spring, the studio lost part of its budget. This deprived the company of the opportunity to pay specialists and continue to create the game.
“Since we started development in 2020, the economic landscape has changed dramatically both in general and specifically for cryptocurrencies, and now we are uncertain about the current market. We have run out of financial resources and at the moment we cannot continue development,” Grant said.
The company’s management decided to take a break until the situation on the cryptocurrency market changes for the better. Phat Loot expects that the value of Bitcoin (BTC) and other cryptocurrencies will recover in the near future, and then the developers will be able to continue creating the game.
Earlier, Polygon Vice President Urvit Goel (Urvit Goel) said that developers of traditional games are interested in the field of GameFi, since games using NFT have a clear advantage.
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