Animoca Brands CEO Discusses Investment Challenges in Web3 Gaming

According to Cointelegraph, Animoca Brands CEO Robby Yung has stated that investing in Web3 gaming requires a greater level of due diligence, especially during a testing cryptocurrency bear market. Yung, who is also the co-founder of the Metaverse platform The Sandbox, spoke about the challenges of investing in Web3 gaming at the European Blockchain Convention in Barcelona.Yung explained that investment propositions involve finding a mix of passionate teams with specific skill sets who are building product ideas with a clear market fit. He added that the stage of development of prospective projects that Animoca Brands considers investing in is typically more mature compared to the standards it had a couple of years ago. Investors are more demanding as a result, requiring tangible progress for projects seeking to raise capital.User acquisition remains a hurdle for the Web3 gaming space, which Yung attributed to challenges around the distribution of games. He pointed to hesitance from mainstream gaming platforms to list games that have Web3 infrastructure. Yung believes that mainstream players remain uncertain about the implications of including Web3 infrastructure in their offerings, which has initially led to a knee-jerk reaction. The Animoca Brands CEO added that the conclusions drawn prevented players like Steam, EA, and Epic Games from learning more about the possibilities and engaging with the Web3 community to find solutions that cater to the wider gaming market.