Game studio Phat Loot lost $528 804 in donations on the collapse of the crypto market
The startup’s head Joshua Grant reported that further development of the MMO Untamed Isles is currently impossible
18.08.2022 - 11:55
What’s new? In 2021, Phat Loot, a New Zealand game studio, launched a crowdfunding campaign on the Kickstarter platform to raise funds for the development of the MMO Untamed Isles. Within a few months, it managed to raise $528 804, the studio was supported by 3052 users. On August 1, Phat Loot announced that it was accepting pre-orders ahead of the game’s October 6 release. However, the developers later announced that they were taking a break due to financial difficulties. As it turned out, the executives of Phat Loot invested all of the collected funds in the cryptocurrency and lost them as a result of the collapse of the market.
What do the studio’s representatives say? The head of the studio Joshua Grant explained that the company has run out of financial resources, and further development is not possible at this time. He admitted that executives of Phat Loot had invested all the money they had raised in cryptocurrency, but because of the collapse in the digital asset market, they lost them. According to Grant, because of this, the studio lost the ability to pay employees and continue developing the game.
As a result, it was decided to take a break until the situation in the digital asset market stabilizes. Grant expects the value of bitcoin and other cryptocurrencies to rise soon, and then the studio will be able to continue development.
Earlier, Babel Finance, an Asian lending platform, lost $280 million on trading with customer funds. The company lost about 8000 BTC and 56 000 ETH in June, facing liquidations due to a significant downturn in the market.
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