Over the courses of seven days, four notable web3 games—Tatsumeeko, Nyan Heroes, Blast Royale, and Rumble Kong League—announced their shutdowns. Collectively, these projects raised over $20 million but ultimately failed to maintain long-term viability. The closures highlight an ongoing trend in the web3 gaming sector, raising questions about what led to their downfall and what strategies future projects can adopt to avoid a similar fate.

Four Web3 Games Shutdown in One Week

Four Web3 Games Shutdown

Each of the games appeared to have the elements necessary for success. Tatsu only a few hours ago officially announced the discontinuation of development for Tatsumeeko: Lumina Fates, a decision made after months of evaluation and feedback from players. While the game showed moments of promise across eight playtests, the development team ultimately determined that the product did not align with their goals for long-term sustainability or the quality expectations set by the community.

Nyan Heroes stood out with $13 million in funding, a development team with experience from franchises like Halo and Destiny, and significant participation during its playtests. Despite these promising signs, the game struggled to retain players, which in turn affected investor confidence. With no viable acquisition deals and dwindling funding, the project came to an abrupt end.

Blast Royale raised $5 million with the aim of establishing itself in the battle royale space. However, it failed to scale effectively and is now scheduled to shut down by the end of June. The team has chosen to open-source the codebase, making it available for community use, though the core development effort will cease.

Rumble Kong League, once recognized for its high-profile marketing and endorsement from NBA player Steph Curry, also concluded its operations. Its $FAME token launched with very limited liquidity, which led to rapid value loss. As operational support diminished and community moderators stopped receiving compensation, the team eventually announced a full reset. Reports later confirmed that the project was sold to a company in Brazil.

Four Web3 Games Shutdown in One Week

Overfunding and Market Expectations

Rather than suffering from a lack of resources, many of these projects may have been hindered by having too much capital too early. During the 2021 crypto market boom, venture capital funding flowed freely, often based on early-stage concepts and promotional materials. When the market began to cool, user interest declined and the expectations set by early investments became difficult to meet.

Some individuals noted that funding in web3 gaming is often milestone-based. If user growth or product traction does not meet investor benchmarks, additional funding rounds can be delayed or canceled. This creates a scenario where even competent teams can find themselves unable to continue development, regardless of their original potential.

Four Web3 Games Shutdown in One Week

Building for Long-Term Sustainability

The recent failures in blockchain gaming do not indicate an end to the sector, but they do highlight the need for change. Many of the games that shut down did so not because of flawed ideas or unmotivated teams, but due to unsustainable spending practices and a lack of strategic planning. Building a successful web3 game in 2025 will require a shift toward careful growth, based on real-time data and clear engagement metrics.

Instead of relying on short-term hype cycles, developers must focus on player retention, product quality, and informed outreach. With access to tools that provide visibility into market trends and campaign performance, web3 game studios can make more reliable and efficient decisions. While the road ahead remains challenging, adopting these approaches can help reduce failure rates and support the creation of web3 games that offer long-term value to both players and developers.