SG web3 gaming IP Pixelmon scores $8m in Animoca Brands-backed round

SG web3 gaming IP Pixelmon scores $8m in Animoca Brands-backed round

Image from Pixelmon's website.

Pixelmon, a Singapore-headquartered decentralised web3 gaming IP, has raised an $8-million seed round backed by Hong Kong-based blockchain gaming developer Animoca Brands and several other investors.

The round included participation from Delphi Ventures, Amber Group, Bing Ventures, Bitscale Capital, Cypher Capital, Foresight Ventures, Mechanism Capital, Sfermion, Spartan Labs, Vista Labs, Emfarsis, and others, according to an announcement.

Pixelmon is a massively multiplayer online role-playing game (MMORPG) designed for web3. Developed by LiquidX Studios, it incentivises players with NFTs that have fractional IP benefits, allowing holders of these NFTs to have ownership rights over a portion of an item’s or a character’s IP.

The startup delivers ownership of IP and in-game assets through its IP fractionalisation system called Mon Protocol.

“The decentralised IP system that Mon Protocol is establishing is significant because it will empower creative communities and IP core fan bases to participate actively in the long-term success of a consumer franchise,” said Yat Siu, co-founder and executive chairman of Animoca Brands.

The startup said it will use the fresh funding to continue the development of casual and mid-core games.

The funding follows the launch of Kevin the Adventurer (KTA), Pixelmon’s first hypercasual game. Deployed in October 2023 on Coinbase’s native Layer 2, Base, the side-scroller saw 36,000 active players and 10,100 hours played in its launch month.

A second hypercasual game, PixelPals, which features pet and habitat management blended with trading card mechanics, is set to launch on Mantle Network in the first quarter of 2024, according to the announcement.

Pixelmon is headed by Giulio Xiloyannis, co-founder and CEO of LiquidX. Xiloyannis was part of the founding team of the Southeast Asian online fashion retailer Zalora.

“The level of support we’ve received is proof that Pixelmon has truly ‘respawned’ from its tumultuous initial mint and it is a demonstration of Web3’s relentless drive to make this industry a success,” said Xiloyannis.

Earlier in March 2022, Pixelmon raised $70 million in NFT sales, but it faced challenges as its NFT project was criticised due to poor art that did not reflect the original teasers of the project.

Today, the startup said it has over 25,000 unique NFT holders, with more than 60,000 wallets engaged on-chain across its NFT collections and minigames.

Web3 venture investing started looking up halfway through 2023 after a significant drop in 2022.

In August last year, ZTX, a Singapore-based Web3 virtual world and creator platform, announced raising $13 million in its seed funding round anchored by Jump Crypto, the cryptocurrency arm of proprietary trading firm Jump Trading.

Animoca Brands and Japanese trading and investment company Mitsui & Co also formed a partnership last year to create a new business that will explore the Web3 market in Japan.

Edited by: Padma Priya

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