Yield Guild Games (YGG/USD) has raised $13.8 million in a token sale led by DWF Labs, the investment arm of high-frequency trading platform Digital Wave Finance (DWF).
The token purchase, which was from the YGG treasury, also attracted the participation of a16z Crypto, Galaxy Interactive, Sanctor Capital, and Sangha Capital Fund.
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The price of YGG rose to $0.39 after the news as the broader crypto market rallied. However, the token was down 6% on Monday morning after a weekend of profit booking, changing hands around $0.35.
YGG eyes further decentralisation
According to a blog announcement the metaverse-focused platform published on Friday, the token purchase is indicative of the confidence industry players have in the company as it looks to bolster growth and adoption across the Web3 ecosystem.
As such the play-to-earn platform will use the funds from the token purchase to develop its soulbound reputation token (SBT) as part of the march towards greater decentralisation.
SBT is an in-game activity and reward token test-launched in 2022. The tokens are non-transferrable and expected to go public in March this year. The token sale reportedly accounts for over 35% of the treasury, estimated to be $25 million as of November last year. With the sale, YGG now holds about 45% of the reserves for SBT’s maximum supply.
Commenting on the sale, YGG co-founder Gabby Dizon said the funding will support the guild’s projects as it looks to “shape the future” of Web3 gaming. The company, which supports players through NFT games, will tap into the partnerships with its investors to achieve this.
For instance, DWF Labs is a leading provider of digital asset-focused solutions, including smart contract auditing, consulting, cybersecurity, and treasury management. DWF also offers token listing, over-the-counter trading and liquidity support among other trading solutions to various clients.
a16z Crypto on the other hand, is a Web3-focused investment arm of VC Andreessen Horowitz. The participation of a16z in the P2E platform’s latest funding round comes after the fund led YGG’s $4.6 million financing round in August 2021.