Funding Crunch Forces Wave of Crypto Game Shutdowns in 2025

A growing list of blockchain-based video games has halted development or shut down entirely in 2025, underscoring a funding squeeze that is rippling through the crypto-gaming sector. Titles such as Deadrop, Nyan Heroes and Ember Sword, once promoted as flagships for player-owned digital assets, have closed after failing to secure additional capital or maintain viable in-game economies. Decrypt counts at least a dozen closures so far this year. Deadrop’s studio Midnight Society dissolved in January after two years in early access; Nyan Heroes’ NYAN token has fallen more than 99% since its May shutdown; and MMORPG Ember Sword cited lack of financing when it went offline in May despite earlier claims of $200 million in NFT land-sale pledges. Other projects including Realms of Alurya, Raini: The Lords of Light, and Gala Games’ The Walking Dead: Empires will disappear by July. Industry veterans say the failures have wiped out sizable private stakes. Individual early-stage backers have publicly disclosed losses ranging from about $100,000 to more than $1 million on angel investments and in-game asset purchases. Even so, some creators and investors insist the market is at an early stage and continue to develop new titles, arguing that blockchain features such as tokenised ownership will gain traction once financing conditions stabilise.