GG Story of the Year 2025: Crypto Gaming Funding Collapse

Crypto gaming faced one of its toughest years in 2025 as venture capital funding nearly dried up, forcing multiple projects to shut down and communities to disappear.

◼️ What happened

◼️ VC funding for crypto gaming largely evaporated in 2025

◼️ Numerous games shut down due to lack of runway

◼️ Developers laid off, players abandoned, NFTs & in-game assets lost value

◼️ “Forever games” promises failed when funding stopped

◼️ Why funding disappeared

◼️ Most studios raised capital during the 2022 bull cycle and ran out of runway

◼️ Investors lost trust after token supply changes and broken commitments

◼️ VCs demanded unrealistic returns in shorter timeframes

◼️ Crypto funds stopped deploying capital by mid-2023

◼️ Token-first pressure

◼️ Investors pushed developers to launch tokens early to secure exits

◼️ Many games weren’t mature enough for token generation events

◼️ Gaming tokens underperformed heavily across the market

◼️ Market reality

◼️ No gaming tokens in the top 150 by market cap

◼️ IMX down over 85% YoY

◼️ GUN token down ~89% from ATH despite active player base

◼️ Key takeaway

◼️ Strong gameplay and community metrics were not enough

◼️ Hype, influencers, and token exits replaced long-term game building

◼️ 2025 exposed structural flaws in Web3 gaming funding models

Crypto gaming didn’t just struggle — its investment model broke.

The next cycle may depend less on tokens and more on sustainable game economics.

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