Blockchain games publisher EON Foundation has raised $5 million in a seed funding round that it said will boost its efforts to disrupt traditional game development by harnessing the power of blockchain and cryptocurrency.
The Palo Alto, California- and Singapore-based games company said, the latest funding round was led by Cherubic Ventures, UpHonest Capital partner Wei Guo, and Feng Li, an early investor in Ripple and Coinbase.
The company said, it will use the fresh funds to start EON Protocol, which will allow other game makers to reach more players at less cost, with guidance from a team of advisors from Zynga, Facebook, and USC GamePipe Lab.
The EON Protocol can be used to exchange traffic among developers and gamers and help game creators launch their games on different blockchains.
The driving force for the project is its own blockchain-based game, Crypto Alpaca, which was launched early this year, according to EON Foundation’s CEO and co-founder Aron Lyu.
Crypto Alpaca is a pet-raising simulation game where players can adopt and breed alpacas. Unlike the other pet-raising games that reward players based on how they aesthetically breed their pets, Crypto Alpaca rewards players based on their participation in the game.
The game accepts Ethereum and the EON token.
“Common publishing considerations like maximizing profit or finding an audience are totally different on blockchain. We’ve built successful blockchain games and now we want to help other developers thrive in this emerging market,” Lyu said.
Aside from launching the EON Protocol, the company said it is also building a decentralized game network, the EON Network, a blockchain platform for developers to launch their titles on. The network is set to be launched in 2019.
According to a Forbes report, blockchain technology and cryptocurrency are having an impact on the gaming sector, which is expected to become a $143-billion global industry by 2020.
“We see gaming as a big market for blockchain applications,” said MK Li, a partner at UpHonest Capital, one of the lead investors in EON Foundation’s seed round.