Param Labs, a gaming infrastructure developer, has successfully raised $7 million in funding through an investment round that was oversubscribed. The round was led by Animoca Brands, a crypto venture capital firm, and saw participation from other investment firms such as Delphi Ventures, Cypher Capital, P2 Ventures (formerly Polygon Ventures), Mechanism Capital, Merit Circle, TRGC Capital, Double Peak Group, and MH Ventures.
The funds raised will be used to address a major issue in Web3 gaming, which is the lack of underlying infrastructure. Param and other modular gaming ecosystems will play a vital role in laying the foundation for the next generation of Web3 games, as stated by Anthony Anderson, the CEO of Param Labs and Kiraverse.
The investment round comes at a time of significant growth for the Param Gaming Platform, which now boasts over 300,000 daily active users. Additionally, the platform’s X page has surpassed 2.5 million followers.
Notably, Yat Siu, the co-founder of Animoca Labs, and Banks, the founder of Face Clan, have also made strategic investments in Param Labs. Siu believes that Param Labs has the potential to bring about a truly open metaverse.
The lack of Web3 gaming infrastructure has been identified as one of the main hurdles to mainstream adoption. Developers face difficulties integrating blockchain technology into games due to this lack of infrastructure, as highlighted by Anderson.
This issue was exemplified by a recent game preview shared by Nick Greenawalt, the founder of Wanderers game. The video showed gameplay pausing frequently as a MetaMask wallet prompt appeared to record each shot on-chain. While the video was meant to be satirical, it underscored the need for seamless gaming infrastructure.
For Web3 games to achieve widespread adoption, they must seamlessly incorporate crypto assets and Web3 technology without any friction points, according to Anderson. This will enable a smoother and more organic integration of blockchain technology into gaming experiences.
In related news, a crypto trader managed to turn a $3,000 investment into $46 million in just one month, thanks to the soaring price of the PEPE token.