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Gaming

Mechanism Capital launches $100 million fund dedicated to gaming

17 Jan 2022 : 15:53
2 min read
  • After a series of successful investments in the sector the company decided to focus on blockchain-based games
  • It sees mobile gaming as the next big growth area in the industry
  • It looks like blockchain-based games are the latest hot trend in the crypto industry

Mechanism Capital announced Monday that it has launched “Mechanism Play,” a $100 million fund focused on play-to-earn gaming.

Mechanism Capital  is eyeing mobile gaming

Originally founded in August 2020, focusing on decentralized finance (DeFi). After a series of successful investments in the sector, including metaverse platform Star Atlas, play-to-earn game Ember Sword, and Yield Guild Games, the company decided to focus on blockchain-based games. The company plans to provide capital and partner directly with studios to develop games.

It sees mobile gaming as the next big growth area in the industry and has hired Steve Cho as its newest partner to lead the fund in the right direction. Cho joins Mechanism Capital from Apple, where he led efforts to better understand “NFTs and blockchain games” for the App Store. Mechanism had already published its theses on crypto games in November in a report called “The Financialization of Fun.”

Blockchain-based games are a new trend

We have seen many blockchain gaming funds in recent months as the sector began to grow. Solana Ventures, Forte, and Griffin Gaming Partners recently raised a $150 million investment fund for games being developed on Solana. Gala Games, a blockchain gaming platform, also announced the launch of a $100 million blockchain gaming fund in partnership with C² Ventures. It is clear that Mechanism Capital is not the only company that sees gaming as a sector with growth potential.

It looks like blockchain-based games are the latest hot trend in the crypto industry. The year 2021 has set the stage for further capital inflows and expansion in the sector, as just a month ago, French gaming giant Voodoo made it clear that it plans to invest $200 million in new studios developing blockchain-based games in 2022 and Binance Smart Chain and Animoca Brands also launched a $200 million program to invest in blockchain gaming projects built on BSC.


About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

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