Ex Populus Raises $8.5M Amid Fears Web 3 Gaming Is Growing Frothy

The game platform closed the round at a $80 million valuation, a modest sum by today’s standards.

AccessTimeIconDec 14, 2021 at 6:59 p.m. UTC
Updated May 11, 2023 at 7:12 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Blockchain gaming projects like Illuvium have reached remarkable valuations in the tens of billions in recent weeks, despite sometimes featuring highly stripped-down or no currently playable games.

It’s an environment in which Ethereum- and Solana-based gaming studio Ex Populus is attempting to find its footing, one that co-founder Soban “Soby” Saqib calls a “predatory” investment landscape built on hype.

  • Earn Alliance CEO on Helping Gamers Discover Web3
    17:22
    Earn Alliance CEO on Helping Gamers Discover Web3
  • Web3 Gaming Market Still Growing in 2023: Game7 Data
    01:21
    Web3 Gaming Market Still Growing in 2023: Game7 Data
  • State of Web3 Gaming in 2023
    08:11
    State of Web3 Gaming in 2023
  • Ethereum's 'Next Wave' of Adoption Is Coming: Optimism Unlimited Chief Growth Officer
    08:38
    Ethereum's 'Next Wave' of Adoption Is Coming: Optimism Unlimited Chief Growth Officer
  • The project announced Tuesday an $8.5 million funding round, part of a push to bring different player earnings models to blockchain gaming – and a more down-to-earth valuation, currently at $80 million.

    The company closed the round with participation from Akatsuki Inc, Gerstenbrot Capital, Blockwall Digital Assets, Citizen X, Fisher 8 Capital, Perpetual Protocol, Yolo Ventures, Libra Capital Ventures, 8186 Capital and Sneaky Ventures, among others. Ex Populus also previously raised a $3 million seed round led by Animoca Brands in October.

    “We think as more people start this play-to-earn model, there will be a supply shock and a race to the bottom,” Saqib said in an interview with CoinDesk.

    He compared the phenomena to forks of popular decentralized (DeFi) protocols that “out-bribe” other platforms by printing tokens. In the same way, blockchain games can currently reach large market capitalizations but offer little by way of players, earnings or other important metrics.

    Ex Populus is also hoping to attract attention with a novel token distribution method: 40% of the platform’s forthcoming token supply will be earned by players, with the majority going to the best players in a “proof-of-skill” distribution system – a play on “proof-of-stake” and “proof-of-work,” two foundational consensus and mining mechanisms in blockchain.

    The company’s long-term goal is to become a multi-game platform and publisher, similar to Steam or Enjin. Blockchain gaming platform Enjin is also an investor in Ex Populus, according to Saqib.

    Currently, Ex Populus has two games in development: LAMO, a shooter with NFT-backed collectibles, and Decentralized Autonomous GigaUnits, a trading card game that will be accompanied by an animated series, with more in development.

    “That’s what I’m excited about – bringing really good, complete games into the ecosystem, because I don’t understand how people can go and buy something at a $20, $30, $40 billion valuation. Nintendo is at a $42 billion valuation. It’s disgusting,” Saqib said.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Andrew Thurman

    Andrew Thurman was a tech reporter at CoinDesk with a focus on DeFi.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


    Read more about