Is Web3 Gaming Investment Arena Overcorrecting? Possibly, WAX Exec Says
In a recent chat with Cryptonews, Michael Rubinelli, industry veteran and Chief Gaming Officer at Web3 ecosystem for gaming WAX, discussed how macroeconomic trends affect the gaming industry, what is happening in the gaming investment arena, and the positive future awaiting blockchain-based games.
Rubinelli stated that he may not be an expert on how global macroeconomic trends affect gaming investment, but they “undoubtedly exert a considerable influence on the world of venture capital.”
He noted the reaction to the performance of major games like Axie Infinity. Per Rubinelli, there was an initial overreaction to the success of such games.
Rubinelli argued that,
“When a potential ‘Northstar’ opportunity in a relatively unexplored market segment is identified, it often triggers a rush of investment driven by the fear of missing out (FOMO).”
At the time, many funding pitches revolved around the premise of being ‘like Axie, but better.’ There is no need for a deep understanding of the underlying complexities, so this can be a persuasive strategy to secure investments. That’s especially the case in a rapidly trending sector.
As a result, “substantial amounts of capital” were given to projects that may not have undergone due diligence.
Rubinelli opined that,
“Unfortunately, the subsequent crypto-winter brought about a series of failures among gaming studios and broad investments in Web3, leading to a necessary correction.”
Therefore, a question arises, he said. Are we witnessing an overcorrection in the gaming investment landscape?
“It’s a possibility,” Rubinelli said when talking to Cryptonews in late October.
He noted, however, that venture capitalists in general have been growing increasingly risk-averse.
“Until a more robust and
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