Key Takeaways
- The NFT marketplace cites the inability to raise funds as one of the reasons for closure.
- Increased competition in the NFT gaming marketplace sector is also cited as one among the reasons
In a recent announcement on LinkedIn, Aqua’s CEO, Sean Ryan, confirmed the closure of the gaming NFT marketplace, citing the unexpected challenges faced in the dynamic world of Web3 gaming.
The decision, initially hinted at a month ago, emphasizes the difficulties Aqua encountered in realizing its vision of gamers owning their assets through NFTs. Despite the belief in the concept, Ryan acknowledged that the Web3 gaming market failed to scale to mass-market proportions within the anticipated timeframe.
Aqua, launched in 2022 by the former Facebook VP, positioned itself as a “player-focused” NFT gaming startup. Ryan collaborated with blockchain firms such as Immutable and Polygon Labs in an attempt to create a gaming NFT marketplace with white-glove, embedded solutions for game developers. However, the startup struggled to raise funds, facing challenges within a broader crypto-gaming market that exhibited slower-than-expected growth.
Ryan’s post on LinkedIn included a graphic illustrating the hurdles faced in fundraising, with emphasis on timing. Aqua aimed to provide a unique platform for genuine gamers, distinguishing itself from those solely interested in profit through flipping gaming NFTs. The startup supported NFTs on Ethereum and scaling networks Polygon and Immutable X.
The gaming NFT marketplace sector has witnessed increased competition, with G2A, a key gaming retailer, entering the NFT sales arena, OpenSea revamping its gaming offerings amid staff layoffs, and Magic Eden emphasizing gaming as a core focus. Despite this competitive landscape, Aqua faced challenges that ultimately led to its decision to cease operations.
Aqua is not the sole gaming NFT platform facing setbacks in 2023. In August, GameStop announced the discontinuation of its NFT wallet, citing “regulatory uncertainty.” These developments underscore the complexities and uncertainties inherent in the intersection of gaming, NFTs, and the broader blockchain industry.
In a broader context, the NFT market has experienced a downturn, leading several marketplaces to shut down since the beginning of 2023. In August, Recur, once valued at $333 million with backing from Ethereum co-founder and prominent investors, also succumbed to challenges in the NFT market. In February, cryptocurrency exchange WazirX closed its NFT marketplace, WazirX NFT, signaling the pervasive challenges in sustaining NFT-related ventures.
