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.