Tatsumeeko, Nyan Heroes, Blast Royale, and Rumble Kong League announced their shutdowns within just one week, and despite raising more than $20 million collectively, these projects struggled to maintain long-term engagement and sustainability, reflecting deeper issues in the blockchain gaming space.
High Hopes, Sudden Closures
Tatsumeeko: Lumina Fates, the latest to announce its end, was shut down after months of player feedback and internal evaluations. The developers cited concerns about the game’s long-term sustainability and quality alignment with community expectations, despite positive signs during eight rounds of playtesting.
Nyan Heroes had perhaps the most striking fall. With $13 million in funding and a team that included developers from hit franchises like Halo and Destiny, the game had strong potential. But it failed to keep players engaged after initial testing phases. Without further investor support or acquisition interest, the project was eventually canceled.
Blast Royale, which raised $5 million aiming to build a web3-style battle royale game, also couldn’t scale. Although the game will officially shut down by the end of June, the team has open-sourced its codebase in hopes the community might find new use for the project.
Rumble Kong League, known for its splashy marketing and support from NBA star Steph Curry, ended after facing multiple internal issues. Its native token $FAME launched with weak liquidity, resulting in sharp value drops. As funding dried up and core team members left, the project was quietly sold to a company in Brazil.
The Hidden Cost of Early Success
These closures weren’t due to a lack of resources. In fact, many of the games received significant funding during the peak of the 2021 crypto boom. The problem, some analysts suggest, was receiving too much money too early. With large investments come high expectations, and when early-stage games fail to meet rapid growth milestones, funding often disappears just as quickly as it came.
In web3 gaming, funding tends to be performance-driven. If user numbers or traction fail to impress, further financial backing is typically withheld. Even talented teams can find themselves out of time and money before delivering a final product.