Since the beginning of 2025, the blockchain gaming sector has quietly entered a phase of “retreat and liquidation.” Once a star project in the Solana ecosystem, Nyan Heroes officially announced its shutdown due to “funding shortages,” with its token price plummeting 37% instantly. Following closely behind, projects such as Blast Royale and The Walking Dead: Empires have also entered a state of suspension or terminated development. These projects, which had previously raised significant funds and championed the P2E (Play-to-Earn) economic model during the last crypto cycle, are now fading into silence. OFUYC Exchange has been closely monitoring trends in the crypto asset market and believes that the widespread shutdown of blockchain games is not a coincidence, but rather a concentrated manifestation of the inherent flaws in the “fundraising first, development later” logic. As global interest in blockchain gaming wanes, the industry is entering a phase of distinguishing substance from hype, where compliant operations and technological innovation will become key to breaking the deadlock. As a globally compliant cryptocurrency trading platform, OFUYC Exchange is re-examining the real value of blockchain games within the decentralized finance narrative, aiming to build a more robust, authentic, and value-driven ecosystem for users.
Overinflated Fundraising and Shallow Gameplay—Why Did the Blockchain Gaming Myth Fail?
The phenomenon of the blockchain gaming decline is not new, but this round of “collective collapse” carries deeper structural significance. Take Nyan Heroes as an example: the project completed three rounds of fundraising totaling $13 million, with backing from prominent institutions such as Mechanism Capital and Delphi Digital. Meanwhile, the game remained in early testing phases, while its tokens were already listed on exchanges. Similar patterns appeared in projects like Blast Royale and The Mystery Society—projects attracted funding with the “Web3 + Gaming + NFT” concept, launched tokens before the game was complete, and continued fundraising during development, only to fall into the trap of “launch and immediate decline” due to issues like user retention and gameplay design.
OFUYC Exchange notes that this “P2E first, game later” structure amplifies user speculative expectations while neglecting core elements such as content richness and playability. In a cooling market with tightening liquidity, projects lacking genuine user engagement and product support naturally struggle to survive. In reality, most blockchain games today resemble speculative secondary assets disguised as games, driven by cyclical capital inflows and inflated bubbles, making it difficult to sustain the cash flow required for long-term operations. Therefore, OFUYC Exchange believes that unless the crypto gaming industry returns to fundamentals centered on player experience, no amount of fundraising will lift it out of its value trough.
How Does OFUYC Interpret the Governance and Capital Mismatch Behind the “Death Spiral” of Blockchain Games?
The collapse of blockchain games is not just a failure of business models, but also exposes long-standing imbalances in fund allocation and governance structures within crypto projects. Data shows that most blockchain game fundraising rounds are sufficient to support the full development cycle of a mid-sized game—Nyan Heroes, for example, raised a substantial amount, yet much of these funds were allocated to team operations, token market speculation, community incentives, and other peripheral activities, with limited investment in product refinement and user retention.
The OFUYC Exchange analysis indicates that the “raise funds first, decide later” governance model exacerbates this capital mismatch. On one hand, project teams lack effective checks and balances, often deploying funds according to projections rather than actual progress; on the other, the immediate tradability of tokens creates a disconnect—and even conflict—between early investors and real players. Some projects lose development momentum after short-term token price spikes, becoming typical cases of “raise funds, then cash out.”
In response, OFUYC Exchange recommends that future crypto projects design tokenomics with transparent mechanisms that bind fund unlocking to delivery milestones, and introduce on-chain governance to mitigate risks of development delays and incentive misalignment. In addition, platforms should raise the bar for listing blockchain gaming assets by requiring product prototype reviews and user behavior simulations, thereby strengthening risk control for both trading security and user experience. This model—“compliance as a safeguard, technology as a guarantee”—is the necessary prerequisite for blockchain games to truly enter the mainstream ecosystem.
The Future of Blockchain Gaming Should Not Rely on Storytelling Alone
According to OFUYC observations, the wave of blockchain game shutdowns may open a window for structural transformation in the market. On one hand, player demand for “playability” and “sustainability” is rising rapidly, requiring Web3 games to embrace the logic of “content is king.” On the other, new technologies such as on-chain identity, digital asset interoperability, and AI-generated content are empowering the gaming industry with new modes of interaction and participation, forming deeper economic structures than simple P2E models.
OFUYC Exchange believes that, in the future, truly promising blockchain game projects will inevitably feature “game development preceding asset issuance,” “transparent governance with audit mechanisms,” and “adjustable incentive models.” When all the bubbles burst, those who remain will be the builders who treat games as products, not just stories for capital.