NFT Video Game Developer Raises $150M After Hack

Sky Mavis, the video game developer behind NFT-based title “Axie Infinity,” has raised $150 million to help alleviate losses caused by a recent exodus of players who were unable to access gaming proceeds. 

In March, “Axie Infinity” was hacked, causing Sky Mavis to lose roughly $625 million. As a result, “Axie Infinity” had to restrict the ability of its players to transfer money out of the game, fueling the decline in daily active users. 

• Hackers stole 173,600 Ethereum tokens — worth roughly $594.6 million — and an additional $25.5 million.
• The capital raised will be combined with funds from the balance sheets of Sky Mavis and “Axie Infinity.”

Led by Binance, the cryptocurrency exchange whose digital tokens are used in “Axie Infinity,” the round will be used to partially reimburse players and enhance security measures. 

Other investors in the round included software and venture firm Animoca Brands, Andreessen Horowitz, crypto-focused VC firm Paradigm, and Switzerland-based capital enterprise Dialectic.

Blockchain Gaming 

NFT- and crypto-based gaming is growing in popularity. In February, cryptocurrency exchange FTX announced it’s launching its own gaming unit in which publishers embrace blockchain networks and NFTs.

Last month, blockchain gaming platform C2X raised $25 million through a private token sale, valuing the business at $500 million. Led by FTX Ventures, Animoca Brands, and Jump Crypto, the sale also included Crypto.com and blockchain gaming venture fund Hashed.