Pantera Capital Invests in GAMEE’s TON Expansion

Pantera Capital has invested in GAMEE, a subsidiary of Animoca Brands and the mobile gaming platform behind the WatBird game.

GAMEE, a blockchain gaming firm, developed WatBird as a Telegram Mini App to introduce the messaging app’s users to Web3 through fun, meme-inspired gameplay.

Pantera Follows TON to Back GAMEE

Animoca Brands, the gaming giant, disclosed the investment in a Wednesday press release. The statement indicates that GAMEE will use the funds to expand its presence on The Open Network (TON) through WatBird. The initiative aligns with GAMEE’s goal to strengthen its footprint within TON ecosystem by introducing its gaming experiences to that blockchain.

GAMEE currently boasts over 90 million registered users and has facilitated more than 10 billion gameplay sessions across various platforms. Notably, over 4 million GAMEE users have already linked their TON Wallets to WatBird.

Pantera Capital, which manages over $5 billion in assets, has become the first US institutional investment firm to focus exclusively on blockchain.

Read more: 6 Best Toncoin (TON) Wallets in 2024

Animoca Brands’ GAMEE’s recent integration with TON may have increased its appeal to Pantera. On August 18, TON Venture invested in GAMEE to help develop Telegram mini apps.

With this integration, the Web3 gaming firm is now positioned to tap into Telegram’s vast user base and its potential for mainstream blockchain onboarding. Justin Hyun, director of investments at TON Foundation, described Telegram as a “Trojan horse” for mass blockchain adoption — a potential Pantera Capital likely recognized.

 “We are excited to be able to support the growth of applications within the TON ecosystem. We have been impressed by the traction that GAMEE has found with its Telegram Mini App games and look forward to seeing it expand its presence on TON,” Cosmo Jiang, portfolio manager at Pantera, said.

VC Funding Remains a Controversial Issue

While GAMEE accepts venture capital support, its peer on the TON blockchain, Hamster Kombat, remains firm against external funding. As reported by BeInCrypto, this stance is part of Hamster Kombat’s strategy to safeguard its players’ interests. The decision reflects concerns that venture capitalists may prioritize their exit strategies, potentially compromising the long-term well-being of the project.

“Too many Web3 projects have built audiences only to use them as exit liquidity for their venture capital backers. This has, unfortunately, become the norm in the industry. Instead of creating innovative projects that generate real value and revenue, companies often focus on making a convincing pitch to secure funding, spend it on marketing, conduct an airdrop or even a public ICO, and then walk away — leaving users holding the bag,” Hamster Kombat team explained.

Read more: Top 8 Hamster Kombat Alternatives in 2024

The concern follows recent research revealing how most tokens backed by leading VCs slumped. Nevertheless, Pantera Capital’s interest in GAMEE reflects a common trend among VCs. They target new businesses, primarily startups with high growth potential.