SINGAPORE - A blockchain project developed for gamers has raised US$20 million (S$28.1 million) from prominent names in cryptocurrency and gaming despite headwinds in the digital currency sector.
Oasys, as the project is called, expects to issue 10 billion tokens, with the private launch making up 10 per cent.
These tokens can be used to offset transaction fees, buy items and accessories the games sell, and allow holders to make decisions about the project, among other things.
Oasys, which is based in Japan and Singapore, said the funds would be used to solve issues such as slow transaction speeds and high fees.
The funds will also be used to strengthen partnerships with game developers and digital asset exchanges, increase local headcount and run marketing campaigns.
Oasys has about 20 staff, most of whom are game developers and industry executives based in Singapore or Japan. A few others are in countries such as South Korea and the United States.
The funding raising was led by blockchain financing and investment platform Republic Capital, with other entities such as trading firm Jump Crypto, exchanges Crypto.com and Huobi and venture capital firm Mirana Ventures pitching in.
It comes as sizeable players in crypto face bankruptcy or restructuring, including hedge fund Three Arrows Capital, Singapore-based lender Vauld and broker Voyager Digital, following a plunge in crypto prices.
But Oasys director Daiki Moriyama told The Straits Times that "we aren't so heavily influenced by market movements", adding that the gaming industry, in particular, is resilient.
"During a recession, people will spend more time at home, seeking inexpensive forms of entertainment or are generally looking for video games that operate on a longer-tail business model, representing good value for money," Mr Moriyama said.
The crypto market might be on a decline now, but he said his team is looking to evaluate better products for when the sector recovers.
The blockchain gaming industry has been viewed as an example of a use case for tokens.
Rainmaker Games chief executive noted in May that the video gaming industry, of which blockchain gaming is part, was estimated to be worth US$336 billion by venture capital firm Bitkraft.
And a report out in April said the blockchain gaming industry grew 2,000 per cent over the past year. It added that the sector recorded US$2.5 billion in investments in the first quarter of this year, compared with US$4 billion in all of 2021.
Mr Moriyama said: "What we're seeing now is more and more buy-in from traditional game developers and gaming companies, who are now realising the tremendous value that blockchain gaming offers to players and developers alike."
For instance, Oasys is backed by global gaming players such as Bandai Namco, Ubisoft and Sega.
Japan's government passed a law in June allowing it to regulate stablecoins, or cryptocurrencies that are pegged to fiat currencies like the yen or US dollar, to protect investors.
"So we believe that Singapore's jurisprudence towards crypto strikes the right balance for a blockchain gaming business hub in Asia-Pacific," said Mr Moriyama.
The Monetary Authority of Singapore is looking at setting additional consumer protections, including limiting retail participation and imposing rules on the use of leverage when transacting in cryptocurrencies.
