Gaming platform PlayDough Technologies secures $2m funding round
PlayDough Technologies, the blockchain gaming platform, has announced a $2m funding round led by proprietary trading and venture capital firm Westridge Markets.
The investment comes off the back of an exceptional period of growth that has seen the startup build a community with members spread out in over 30 countries. PlayDough’s mission is to build the conduit that democratises access and enables anyone to participate in the play-to-earn gaming economy.
Traditional gaming business models have evolved from pay-to-play with revenue coming from players purchasing games to free-to-play with in-game purchases generating revenue. Blockchain technology has taken this to the next level creating a play-to-earn revenue model. Gaming companies now essentially create a metaverse but all the in-game items like characters and accessories are represented by NFTs (Non-Fungible Tokens) on a blockchain.
The users mint, purchase and sell these items with the game creator generating revenue through a small commission. These NFTs are then used to play the game and earn rewards. The rewards are in-game crypto tokens which can be moved to exchanges and sold for BTC, ETH or USD. The tokens derive their value from their usage in the gameplay.
The NFTs required to play these games can cost anywhere from a few hundred to a couple of thousand dollars. This leaves the vast majority of players, particularly from developing countries, unable to access these play-to-earn economies. This is where a gaming community like PlayDough steps in. It is simultaneously an investment firm creating a portfolio of gaming NFTs and a remote gig economy network allowing users to use its collection to generate yield for themselves and PlayDough.
Mehul Khati, Co-Founder of PlayDough Technologies commented: “PlayDough has been a journey of blitz scaling since inception. It has only been a few months and we already have active community members in over 30 countries. Gaming seems to be achieving the borderless ideals of crypto at full speed. We have started with the most advanced play-to-earn game, Axie Infinity. While building a community around PlayDough has been satisfying, the ability to look at play-to-earn as a yield generation strategy has also been a motivator for the trader in me. We have built valuation models, breeding strategies and training programs for our community to be able to generate the highest yield possible. While Axie being the most advanced game in the play-to-earn space remains the focus for PlayDough, it has already started building inventory in emerging games from Sorare to Gods Unchained. Star Atlas on Solana and Moonray on Stacks are showing early signs of a cross chain universe that PlayDough is planning to build on.”