A Look at 17 Web3 Games Shutting Down in 2025: Behind the Major Retreat in Blockchain Gaming Lies Financial Struggles and a Crisis of Confidence
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A Look at 17 Web3 Games Shutting Down in 2025: Behind the Major Retreat in Blockchain Gaming Lies Financial Struggles and a Crisis of Confidence
In Q1 2025, Web3 gaming investments plummeted 71% to $91 million as investor interest shifted toward AI and real-world assets.
Navigating Web3 tides with focused insightsText: Shiela Bertillo, Bitpinas
Translation: Felix, PANews
Web3 games, once hailed as the future of interactive entertainment, are now facing a wave of shutdowns.
Tr3vor, a Web3 gaming content creator and host of the Ronin Network podcast, tweeted about 15 Web3 games that announced closures this year, including Nyan Heroes, Mystery Society, and Blade of God. These games have either paused operations, shut down, or plan to close by 2025. Additionally, two more games not on the list also announced closures earlier this year.
2025 Web3 Game Closures
1. Anterris
Anterris is an open-world third-person creature-collecting role-playing game (RPG) where players collect Pokémon-like 3D creatures. It was developed by blockchain game developer Battlebound, known for creating Evaverse.
Anterris launched on the Monad testnet for trial gameplay. Testing ran from February 19 to February 23, during which players could also collect testnet NFTs.
Rumors suggest Anterris has been tested on Steam, but no official release date has been announced.
Gameplay:
Anterris is an open-world creature-collecting game where players explore diverse regions to discover and capture wild creatures called "Antera." Each region features unique Antera, encouraging exploration across land, air, and sea.
Players form combat squads using captured Antera, each possessing unique spells and ultimate abilities. Dungeons offer powerful artifacts that enhance or modify skills. Players can challenge them solo or team up with friends, earning rare items and experience points as rewards through cooperation.
Closure Reason:
This Web3 game has been indefinitely suspended following the collapse of its developer, Battlebound, which shut down after four years of development.
The studio cited funding shortages and "extremely harsh market dynamics" as reasons for closure, despite efforts to extend operations and secure new financing.
They noted that although the project attracted thousands of participants in recent game tests, its future remains uncertain.
The team described the game as being in a "paused" state, with potential revival possible if new funding is secured.
BattleBound, the developer of Anterris, stated: "Despite recent strong momentum, our lean and driven team has fought for four years, stretching resources as far as possible while striving to secure the next round of funding... Ultimately, like many studios before us, we must close due to exceptionally tough market conditions."
2. Blade of God
Blade of God X (BOGX), developed by Void Labs, is a blockchain-based action RPG introducing a "play-to-train" mechanism where player actions in-game influence AI model training.
BOGX combines advanced AI agents with blockchain technology, enabling real-time AI development through gameplay. Set in a mythological world where gods have fallen and chaos reigns, it aims to transcend traditional gaming by merging storytelling, AI, and digital interaction into a unique, immersive experience.
The game received backing from major crypto investors; last year, BOGX raised $6 million to integrate blockchain mechanics with advanced AI.
Gameplay:
Set in Norse mythology, players take on the role of a "Successor"—a reborn warrior—beginning their journey on the fiery continent of Muspelheim.
As they explore worlds connected by Yggdrasil, players face choices between sacrifice and redemption: whether to use ancient relics to influence the world's fate or seek guidance from deities like Odin and Loki.
Closure Reason:
A former executive of BOGX accused the project of abandoning Web3 development after securing funding in the crypto space. Amber Bella, the game’s former chief marketing officer, claimed the Web3 development roadmap was scrapped, team salaries were unpaid, and promised NFT-related benefits for players were ignored.
Bella also alleged that the Web2 team unfairly claimed cash rewards meant for players using internal accounts. Despite early support from Web3 investors, the game reportedly shifted toward pure Web2 development.
3. Blast Royale
Blast Royale is a mobile battle royale game playable on iOS and Android. Its whitepaper emphasized combining fun, competitive gameplay with blockchain features, allowing players full ownership of in-game items such as characters and gear.
Players can join matches, complete battle passes, participate in tournaments, and earn rewards based on skill. The game also includes engaging mini-games, events, and leaderboards. Players can trade acquired items, join leagues, and even aim to become professional players.
The game uses the $NOOB token, which powers the Blast Royale ecosystem, known as the "Blastverse." $NOOB can be used for trading, unlocking features, and granting players a say in the game’s development.
Gameplay:
Players compete in a survival contest aiming to be the last one standing. They can choose any drop location on the map.
During matches, players search for rare chests containing powerful guns, ammunition, medkits, armor, and other scattered items. They can also pick up items dropped by eliminated players. However, most collected items do not carry over after matches, except special coins usable in larger game worlds.
Players receive rewards based on match performance—the higher the rank, the better the rewards. Progression through the Blast Pass, honor system, and leaderboards earns players currency and items that can be used or traded.
Players also earn trophies based on match rankings and kill counts. Collecting more trophies helps improve leaderboard standings and win special rewards.
Closure Reason:
Blast Royale’s developers announced on Discord that they will officially halt game development, with servers shutting down on June 30, 2025. In another message, the team said this decision was made after exhausting all other options.
As a farewell gesture, the game will go fully open-source starting June 1, allowing community members unrestricted access to, use of, modification of, and redistribution of the game code. The original development team will support any community members interested in continuing the project.
All in-app purchases have been disabled, and the team pledged to unlock and distribute all remaining $NOOB tokens, which will still be tradable on Aerodrome.
The Blast Royale Discord server will remain open as a community space, and the team encourages players to enjoy the remaining time, explore new characters, and participate in final events and live streams.
4. Champions Ascension
Champions Ascension is a fantasy fighting game set in a gladiator-style arena.
Running on the Polygon network, it allows players to play and enjoy the full experience without owning NFTs or connecting wallets, making it a free-to-play game.
Players can buy and sell unique NFT characters and in-game items via the official Grand Bazaar marketplace or supported third-party platforms.
Last year, the game won the 2024 Gam3 "Best Fighting Game" award. It is available through the Champions Ascension website or the Epic Games Store.
Gameplay:
Heros start as Grunts and gradually ascend to become powerful NFTs known as "Eternals," unlocking new skills and earning cryptocurrency rewards.
Combat is strategic, influenced by each hero's family, class, essence type, and unique body parts. Players can fight in multiplayer PvP modes such as 1v1, 3v3, and free-for-alls, or engage in PvE battles like boss fights. The Extreme Mode offers advanced rewards, but non-Eternal heroes risk permanent death upon defeat.
Players can upgrade, craft items, and promote heroes by earning Essence. Prime Eternal NFTs offer special perks such as daily rewards and rare abilities.
Closure Reason:
Luke Jech, Rough House Games’ community and social marketing manager, announced on their Discord server that Champions Ascension servers—including features like Imperial Expeditions and Dudo—will be temporarily shut down as the development team shifts focus to a new project called REACH Labs. This move aims to allocate all resources to REACH, a Web3 publishing platform co-developed by Rough House Games and Overworld.
Although the project is paused, KEYS rewards will continue to be distributed to eligible players to ensure ongoing recognition of their in-game efforts. Developers assured the community that Champions Ascension is not canceled but under reevaluation, with further updates expected after REACH launches.
"REACH is our next big step—a bold project with the potential to redefine distribution in gaming and beyond. While Champions Ascension development and servers are paused, the technology we're building will play a crucial role in shaping its future."
5. Derby Stars and Derby Race
Derby Stars is a blockchain-based horse racing metaverse game built on Polygon. Players can own, breed, train, and trade unique racehorse NFTs composed of over ten customizable body parts. Derby Race is a real-time "pick-the-winner" horse racing game playable on Telegram.
Gameplay:
Derby Stars incorporates a "play-to-earn" mechanism, allowing users to participate in races, improve horse skills, and earn cryptocurrency rewards not only through winning but also via training and breeding. The game features a dual-token economy comprising governance and utility tokens.
Derby Race offers quick, engaging two-minute gameplay sessions where players predict and select winning horses to earn rewards.
Closure Reason:
Ham Seon-Woo, CEO of HypeDream, announced in a blog post that Derby Stars and Derby Race have officially shut down due to prolonged financial difficulties. He noted that the team suffered major setbacks since the 2022 Terra collapse, wiping out their NFT revenue and significant seed funding.
Despite relaunching on Polygon and later attempting migration to Immutable, these projects failed to attract sufficient investment or achieve user growth, ultimately leading to the decision to terminate all services.
6. Goombles
Goombles is a 3D tower defense game designed to bridge Web2 and Web3 through gaming and physical products. Built on the Cardano blockchain, it features collectible candy-themed characters serving as exclusive access passes.
While Goombles is not a "play-to-earn" game, it leverages blockchain technology to enhance gameplay, offering surprises and rewards through ownership of different Goombles NFT types.
Gameplay:
Goombles is a tower defense game where players defend their base in Sweetopia, a candy-themed world, by strategically placing towers and controlling mechs against cunning enemies known as "Sours."
Players start with a mech NFT avatar and use it along with upgradable towers to slow down, attack, and progress through single-player adventures, player-versus-player battles, and team competitions.
Closure Reason:
Goombles shared a screenshot announcement on X, stating that after over two years of development, the team decided to stop game development. Although the game launched in 2024 with 339 players installing it, activity levels were insufficient to sustain further development.
Developers noted that while development has stopped, servers will remain operational so players can continue enjoying the game.
7. Jungle
Jungle is a Web3 game publisher focused on mobile-first, community-driven hybrid games powered by blockchain.
Its first title, For The Win (FTW), is a mobile shooter reported to have surpassed 100,000 downloads during initial testing in Latin America, with plans for global rollout.
Closure Reason:
Grail.ETH posted a screenshot on X showing Jungle will cease all Web3 development and instead focus on building a completely free mobile game.
The statement indicated that after a year of active community engagement through game nights, tournaments, and NFT sales, the team decided to prioritize sustainability by moving all development off-chain and discontinuing Web3 integration.
8. Kryptomon
Kryptomon is a Web3 mobile MMORPG where players collect, breed, train, and battle unique NFT creatures—Kryptomons.
In 2023, Playdex, a Philippines-led social gaming platform, launched a rental marketplace for Kryptomon: Genesis, allowing players to rent Kryptomon NFTs for just 1 peso (Philippine currency) per day.
Gameplay:
Kryptomon: Genesis is a blockchain-based Web3 RPG set in the Kogaea metaverse, where players act as "trainers," exploring the world, completing quests, and battling using NFT-based digital creatures called Kryptomons. Core blockchain features include NFT ownership, earn-through-play mechanics (players earn $KMON token rewards), and secure digital asset management via Web3 integration.
To begin playing, users need three Kryptomon NFTs, which can now be rented through Playdex for as low as 1 peso per day. These rented assets can also be used in upcoming Playdex GameHub tournaments, giving players chances to win leaderboard prizes and additional rewards.
Closure Reason:
In Tr3vor’s X thread, he shared a screenshot from the Kryptomon (KMON) Discord community indicating that game development has been put on hold due to lack of funds.
Market reports suggest the team has exhausted its resources and is currently seeking new funding or potential buyers to revive the project.
9. Loot Legends
Loot Legends is a free mobile dungeon-crawling game developed by HYCHAIN, available on App Store and Google Play. It includes over 10 chapters, 200 dungeon stages, and more than 1,500 weapons and armor pieces.
The game uses multiple in-game currencies including diamonds, gold, and honor badges, with $TOPIA at the core of its economy. Players can earn $TOPIA through gameplay and use it to purchase premium items. It also features a marketplace called "The Outpost," where players can trade in-game items as digital collectibles.
Gameplay:
In Loot Legends, players dive into a rogue-like dungeon crawler where every adventure offers a fresh experience.
They explore over 10 chapters and more than 200 handcrafted dungeon stages, battling monsters, avoiding traps, and defeating powerful bosses. Along the way, players collect valuable loot such as weapons, armor, and special items that can be upgraded or crafted to boost their power.
The game offers both solo and multiplayer modes, including guilds, raid instances, and PvP challenges. By blending action, strategy, and treasure hunting, it delivers a fast-paced and rewarding gameplay experience.
Closure Reason:
On February 28, 2025, HYCHAIN announced it would shut down its game publishing division to fully concentrate on developing its flagship game platform, HYTOPIA.
This decision marks the end of HYCHAIN’s publishing business, including titles like Loot Legends and Dragon Legends. According to the company, this move aims to streamline operations and consolidate resources into HYTOPIA, which they believe holds greater long-term potential.
Loot Legends, a Web2 game acquired and migrated to a Web3 platform by HYCHAIN, will continue operating but will receive no further updates. The game previously attracted over 25,000 active players and cultivated a loyal community.
10. MetalCore
MetalCore is a mech-based combat game emphasizing intense strategic multiplayer battles, developed by Studio 369. It blends first-person and third-person shooting elements with crafting and vehicle-building mechanics.
The game is currently in early access on the Epic Games platform. Built with Unreal Engine 5, it supports cooperative and competitive multiplayer modes. Season 1, launched on September 12, 2024, introduced a new MetalPunks theme, leaderboards, and tournaments.
Gameplay:
MetalCore is a free-to-play post-apocalyptic blockchain MMORPG combining FPS gameplay with large-scale PvE and PvP battles. Players pilot customizable war machines—mechs, tanks, and jet fighters—for one of three factions, earn NFT-based in-game assets, and eventually participate in a dual-token economy consisting of a governance token (MTP) and a utility token (FAB).
Originally built on Polygon via Immutable X’s zkEVM for blockchain integration—including NFT ownership and item trading—MetalCore is reportedly migrating its blockchain infrastructure to Solana to improve scalability and performance.
Closure Reason:
According to Tr3vor, Metalcore developers have not issued an official statement, but “the game appears to have been abandoned. No statements have responded to outside speculation.”
In Metalcore’s latest X post, it thanked players for participating in the ita Battlegrounds event and announced its servers and Discord channel would temporarily go offline to implement major game changes. While they assured the community of a swift return, there have been no updates since March.
11. Mystery Society
Mystery Society is a Web3 social deduction game developed by Great Big Beautiful Tomorrow. The studio is led by Chris Heatherly, a former executive from Disney and Universal Pictures. The game emphasizes teamwork and strategic discussion.
Although development is currently paused, the game was previously playable via desktop login using Immutable Passport or downloadable via Google Play Store.
Gameplay:
Players assume roles as family members in a haunted castle, some secretly impostors. As everyone works to complete tasks, the impostors sabotage efforts.
The core gameplay revolves around deduction and deception, with players holding meetings and voting to eliminate suspected impostors, blending strategy, social interaction, and teamwork for a suspenseful and entertaining experience.
Closure Reason:
Mystery Society announced on an X post dated February 25, 2025, that development would be paused due to difficulty securing funding amid current challenges facing the Web3 gaming industry. Plans for the $MYSTRY token are now indefinitely postponed, and players who purchased in-game gems will receive refunds.
While the game will remain online for now, the team is exploring possibilities of re-releasing it on Steam without Web3 elements and is open to partnering with publishers from either Web2 or Web3.
12. Nyan Heroes
Nyan Heroes is a free-to-play, Solana-based hero shooter developed by 9 Lives Interactive, inspired by games like Overwatch. Players control cats piloting mechs called "Guardians," each with unique abilities and customizable loadouts.
The associated NYAN token launched in May 2024 and can be earned through play-to-earn airdrops, used to unlock rewards, pay fees, rent assets, and participate in governance.
Gameplay:
Nyan Heroes is a shooter where players control cats piloting powerful robots. Each cat has its own style and skills, while robots come in different tiers with special abilities.
Players can upgrade and customize their robots using attachments. The game also features fast, agile movement and offers various game modes, delivering a rich, fun combat experience.
Closure Reason:
Despite attracting over 1 million players across four Pre-Alpha tests on Epic and Steam, Nyan Heroes announced its shutdown due to lack of funding.
Developer 9 Lives Interactive said they struggled to secure funding despite discussions regarding publishing, financing, and acquisition.
While there remains hope the studio or IP could be acquired, the game’s future remains uncertain.
Nyan Heroes stated: "Despite these achievements and ongoing talks about publishing, new investments, funding, and acquisition, we were unable to secure the necessary funding to complete the game. This is not the outcome we wanted. The entire industry is struggling, and unfortunately, Nyan Heroes will be closing."
13. RoboKiden
RoboKiden is a fast-paced team-based action game blending third-person shooting, cooperative gameplay, and MOBA-like strategic elements, featuring numerous characters, quirky weapons, and robots. With cross-platform play support, it’s playable on PC, PS5, Switch, and Xbox Series X, delivering intense, tactical robot battles.
Gameplay:
RoboKiden combines teamwork, strategy, and varied weapon loadouts. Each player controls a unique character in matches typically lasting around 10 minutes.
Players choose distinct characters, wield flashy guns and powerful robots, and compete for key map locations.
Closure Reason:
Although developers did not explicitly confirm the game’s closure, there have been no new updates since their X account posted a summary report about a smart contract hack in February last year.
On December 25, 2024, a vulnerability in RoboKiden’s team allocation smart contract on Avalanche allowed attackers to steal 38.7 million $KIDEN tokens. The flaw stemmed from missing ownership checks in the contract’s initialization function. Attackers swapped stolen tokens for $WAVAX and transferred funds to their wallets.
According to RoboKiden, with the $KIDEN price plummeting, three buyers acquired stolen tokens at low prices and moved them to MEXC, complicating recovery efforts. In response, RoboKiden withdrew liquidity from decentralized exchanges, warned the community, and began collaborating with exchanges and law enforcement for investigation.
The team noted the attack caused significant damage to token stability and drained team resources.
14. Rumble Kong League
Rumble Kong League is a Web3 3v3 arcade basketball game combining fast-paced, exaggerated basketball action with blockchain technology and NFTs.
Set in the city of Asloth, players unlock rewards by progressing through leagues while exploring missions, challenges, and mini-games.
The game is available on Google Play Store and Apple App Store. It is also one of the games built on the Ronin platform.
Gameplay:
Players can own or rent unique Kong NFTs and compete in short, thrilling matches using special skills, flashy dunks, and strategic moves.
The core gameplay is AI-driven but still influenced by player input, ensuring dynamic, skill-based competition. The game also features a "play-to-earn" system where players earn in-game rewards potentially exchangeable for real-world money.
Closure Reason:
Although developers haven’t issued an official statement, StarPlatinum, host of the Ronin podcast, expressed disappointment over Rumble Kong League’s failure, noting that despite years of anticipation—including NFT launches and celebrity endorsements like Stephen Curry—the project ultimately fell short of expectations.
The team behind the game later told the community they were “starting from zero,” hadn’t paid administrators in two months, and now seemed to have abandoned the project, possibly selling it to a Brazilian company.
15. Tatsumeeko
Tatsumeeko is a Web3 role-playing game integrated with Discord, also supporting iOS, Android, and web platforms.
In September 2024, Tatsu Works, the studio behind the game, announced migration from IMX and Solana to the Ronin network.
Gameplay:
Tatsumeeko’s gameplay centers on loot, team progression, and community building.
Set on the continent of Steyria, players take on the role of "Outsiders" arriving in a turbulent era of peace where modern technology clashes with ancient myths. Using a hybrid party system, players customize their main character and assemble companion teams, each with unique growth paths and equipment.
Battles are turn-based and automated, requiring players to strategize against different enemy squads. Beyond combat, Tatsumeeko includes life-skill activities like fishing, farming, and pet care, appealing to players who prefer non-combat gameplay. Players also gain private "Pocket Dimensions" for personal housing and pet interaction.
Closure Reason:
In a blog post, Tatsu Works announced the formal cessation of development on Tatsumeeko: Lumina Fates, citing challenges in launching a sustainable product meeting community expectations. Despite multiple playtests and high community engagement, the team felt the game lacked the core vision and confidence needed to move forward.
They stated this decision reflects Tatsu’s return to its roots—developing games for online communities like Discord. The announcement emphasized that their next project, "Project: Wander," will launch directly within these social spaces, focusing on quick, interactive, community-driven gameplay.
Tatsu also assured holders of Meekolony Passes and Aethereal Parcels that their assets will retain utility in upcoming projects.
16. The Walking Dead: Empires
The Walking Dead: Empires is a blockchain-based survival MMORPG set in the universe of AMC’s hit TV series. Developed by Ember Entertainment and supported by Gala Games, it combines classic survival mechanics with NFT-based ownership.
The game features NFT land ownership, offering gameplay advantages such as resource boosts and extra defense, along with the prestige of owning a piece of the game world.
Gameplay:
In The Walking Dead: Empires, players choose a hero—either a regular survivor or an NFT-based character—and engage in survival gameplay involving scavenging, crafting, building, and defending bases.
Key features include resource gathering, player-versus-player combat, and NFT integration to enhance gameplay. While NFTs offer advantages, the game remains fully playable without them, aiming to appeal to both traditional and Web3 gamers.
Closure Reason:
Gala Games announced it will shut down The Walking Dead: Empires on July 31, 2025, ending over three years of development and more than a year of public testing. This decision is part of a strategic shift to refocus on the broader Gala Games ecosystem.
Players holding in-game NFTs will receive equivalent replacement NFTs with similar functionality in other Gala Games titles. A redemption system is under development, with more details forthcoming.
However, Gala Games has not specified exact details of the NFT redemption process, leaving uncertainty about how replacement NFTs will match the value and functionality of original assets.
17. Valeria: Land Before the War
Valeria Studios is a Web3 gaming studio dedicated to building blockchain-based games where players can own, trade, and profit from in-game assets.
Its flagship title, Valeria: Land Before the War, allows players to use VAL tokens to purchase items and participate in the game economy.
Gameplay:
Valeria: Land Before the War is a real-time strategy mobile game released on October 4, 2024, for iOS and Android platforms.
Players unlock heroes, weapons, and NFT items through various game modes including dungeons, story mode, faction battles, PvP, and tournaments. The game launched on the XAI network.
Closure Reason:
Valeria Games announced on X that they have run out of funds and will pause development and support for their mobile game and trading card game (TCG).
"For now, we’ll keep the game running for a while as we look for investors or potential buyers. If we find the right partner to help realize our vision for this mobile game and TCG, we’ll do everything possible to make it happen. But for now, the LOV TGE plan is indefinitely postponed."
Current State of the Web3 Gaming Industry
In a recent DappRadar report, Web3 gaming investment plunged 71% in Q1 2025 to $91 million, as investor interest shifted toward AI and real-world assets. The user base also declined 6% quarter-on-quarter, with 5.8 million daily active unique wallets.
Additionally, an earlier report from Footprint Analytics noted that despite strong performance in the broader crypto market, the Web3 gaming sector sharply declined in January 2025, with market capitalization dropping 19.3% to $22.3 billion and transaction volume falling 12.4%, due to platform consolidation, waning investor interest, and competition among chains like Wax, opBNB, and Aptos.
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