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The South Korean gaming giant WeMade is optimistic that its extensive blockchain gaming initiative is beginning to yield results, according to media reports from March 13.
Business Post noted that the sector is “noticing” the company amid the ongoing crypto bull market.
Token of South Korean Gaming Company Surges
WeMade initiated its bold shift towards cryptocurrency in 2018, initially establishing a dedicated blockchain gaming subsidiary before later reintegrating it.
Its primary project is arguably the WEMIX coin and platform. Despite a contentious domestic delisting decision in late 2022, WEMIX is currently experiencing a resurgence.
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On March 13, the coin’s trading volume over 24 hours reached $17.8 million, with prices rising across the broader cryptocurrency market.
Seven-day WEMIX prices. (Source: CoinGecko)
Nonetheless, the token still has a considerable distance to cover before it can achieve its all-time high of $24.71 from November 2021.
The media outlet highlighted that WeMade has recorded two consecutive years of losses in its blockchain ventures.
However, the company seems optimistic about reversing this trend in 2024. Following several underwhelming blockchain gaming launches, it appears to have found success with its latest game, Night Crows.
According to Hanguk Kyungjae, Night Crows launched “in over 170 countries” this week, “reaching 150,000 concurrent users within a day of its release.”
WeMade reported that approximately 100,000 users accessed the game “within an hour of its launch” and “peaked at 164,000 around midnight.”
In comparison, the firm’s MIR4 title “achieved 120,000 concurrent users within a month of its launch in 2021.”
WeMade described this accomplishment as a “record-breaking achievement,” while the media outlet suggested that industry experts believe the company may have generated approximately $4.6 million in revenue from the launch already.
The South Korean gaming company also introduced an interoperability platform called Unagi this month.
WeMade states that the platform enables users to “move freely” among “major blockchain ecosystems,” creating a connection between its own WEMIX 3.0 network and protocols such as Ethereum, Klaytn, Avalanche, and Polygon.
Source: WEMIX/YouTube
The company has not disclosed the total amount of its investment in blockchain. However, it has been incurring losses since 2022, when, according to Business Post, “investment began in earnest.” The media outlet reported:
“As deficits persisted in 2023, there was skepticism regarding the WEMIX blockchain business, both internally and externally.”
WeMade reported losses of approximately $85.5 million in 2023. It also incurred expenses from an unsuccessful legal battle related to the 2022 WEMIX delisting.
In January of this year, the company received a $41 million “crypto tax bill,” adding to its financial challenges.
However, rising WEMIX prices and a favorable response to Night Crows may indicate a shift in fortunes. CEO Jang Hyun-guk stated in January:
“WeMade’s blockchain business will achieve its greatest success to date with the global launch of Night Crowa in 2024. [People] will be able to easily understand our future and vision.”
The post South Korean Gaming Giant WeMade’s Blockchain Bet Finally Pays Off? appeared first on Cryptonews.
