Blankos Block Party Raises $1.25B from a16z

A16z Crypto's Continued Investment in the NFT Space

A16z Crypto has demonstrated significant activity in the NFT market throughout the year. In July, the firm provided backing to NFT marketplace OpenSea, resulting in a valuation of $1.5 billion. Furthermore, they participated in a September funding round for Dapper Labs, the creators of NBA Top Shot, which established the company’s worth at $7.6 billion.

Recently, they invested in the development team responsible for the play-to-earn cryptocurrency game Axie Infinity, valuing the project at $3 billion. While the NFT ecosystem is still in its nascent stages, a16z’s most recent investment represents a slightly earlier-stage venture than their previous engagements.

Mythical Games Secures $150 Million in Series C Funding

Mythical Games is currently raising $150 million in a Series C funding round led by a16z, achieving a valuation of $1.25 billion. This comes just months after completing a $75 million Series B raise. The company’s primary game, Blankos Block Party, is an NFT-integrated game currently in “early access” and boasts a monthly active user base in the “high tens of thousands.”

According to CEO John Linden, the company wasn’t actively seeking funding at this time. However, a16z Crypto proactively approached them with an offer, recognizing their strong position and potential. This allows Mythical Games to operate with substantial capital reserves for the foreseeable future.

The Emerging Landscape of Crypto Gaming Startups

The number of cryptocurrency gaming startups remains relatively limited. A significant portion of these ventures are spearheaded by founders deeply rooted in the crypto world, prioritizing crypto economics as a central element of their game designs.

Consequently, many blockchain games feature sophisticated economies but often lack refined gameplay mechanics. Mythical Games distinguishes itself by prioritizing gameplay experience, with blockchain-based investment features serving as a secondary consideration.

Blankos Block Party: A Gameplay-First Approach

Blankos Block Party, Mythical Games’ flagship title, feels less focused on cryptocurrency than many other NFT games. It offers a polished gaming experience, resembling titles like Fall Guys, and incorporates a revenue model that blends a BattlePass subscription with a non-crypto in-game currency.

Players can utilize this currency to purchase NFTs, which can then be sold for real money on a secondary marketplace. This “play-to-earn” system rewards users for their engagement with the platform. Users have the option to participate in these features without directly interacting with cryptocurrencies.

Linden indicates that Mythical Games intends to further integrate crypto mechanics, but emphasizes a cautious approach, carefully evaluating where to adhere to established norms and where to innovate.

A16z's Vision for Blockchain Integration in Gaming

Mythical Games’ achievement of unicorn status signifies a16z Crypto’s belief that game developers will be receptive to a more nuanced integration of blockchain-based in-game economies. The studio is collaborating with smaller development teams to incorporate its infrastructure, including marketplace services, compliance technology, token management, and access to a custom blockchain.

Their goal is to facilitate the adoption of complex in-game economies based on NFTs within the gaming industry, while simultaneously ensuring a user-friendly experience that avoids the complexities often associated with cryptocurrencies.

Arianna Simpson, a general partner at a16z Crypto, states, “This represents the future of gaming, the future of how players will expect to engage with games, and be rewarded for their time and investments. It’s a multitrillion-dollar market, without question.”

Challenges Facing Blockchain-Based Gaming

Currently, blockchain-based mechanics can present a challenge for game studios. The platform environment remains somewhat unfavorable for NFT-based titles. Apple and Google have shown limited interest in supporting crypto payments or NFT sales within their mobile app stores, while Steam has explicitly prohibited NFT games from its PC game store, directly impacting Blankos.

This reluctance is partly attributed to the desire of platforms to protect their existing in-game payment systems, but also stems from legal uncertainties surrounding the potential classification of some titles as securities.

Blankos Block Party's Current Availability and Future Prospects

At present, Blankos is exclusively available as a desktop PC client, downloadable directly from the official website. Mobile applications are not yet available, nor is the game listed on any PC game stores.

Despite the current lack of mobile accessibility, a16z Crypto anticipates significant opportunities for Blankos and the broader crypto gaming sector. Simpson notes that while mobile is undoubtedly important, desktop gaming remains a substantial market, with the majority of high-value transactions currently occurring on desktop platforms.