Investing in Web3 Gaming During a Downturn

Summary:
Despite a 37% decline in game tokens in 2024 and skepticism about the future of Web3 gaming, angel investors see this downturn as an opportunity to invest in innovative projects. Emfarsis, an investment and advisory firm, is particularly bullish on Web3 gaming, believing it can drive significant innovation, adoption, and impact.
Having been involved in blockchain since 2016, Emfarsis saw the potential of the technology to empower marginalized groups. Their belief in Web3 was further cemented by the success of games like Axie Infinity, which demonstrated significant adoption without simplifying blockchain’s complexity. Axie’s peak saw nearly 3 million daily active users, mainly from emerging economies, highlighting the potential for financial empowerment through gaming.
The rise of scholarship models within Axie, created by the community to lower participation costs, showcased the entrepreneurial spirit within Web3 gaming. Although now obsolete due to free-to-play models, these innovations hinted at the creative possibilities in the sector.
Emfarsis continues to invest in Web3 games, seeing them as the most promising use case for blockchain technology. Despite current economic challenges, they note significant progress and creativity in Web3 game development, with over 994 quality games available as of July 2024. Emfarsis remains optimistic about the future, believing Web3 gaming will lead the next wave of blockchain adoption and innovation.
The firm holds various cryptocurrencies and continues to invest in Web3 startups, maintaining transparency about their investments.