Phat Loop Studios, the company criticized last week for abandoning its MMORPG game, Untamed Isles, funded by Kickstarter, it now denies accusations that it has lost its backers’ funds by investing in cryptocurrencies.
The company came under fire last week after announcing a “pause” of its Pokémon-type open-world video game, and part of the community accused the developers of spending the game’s development funds to bet on the cryptocurrency markets.
In a statement on Wednesday, the developers behind the project, which raised over US$525,000, or NZ$841,000, on Kickstarter, they insisted thatthat all funds raised “were spent by the studio developing the game.”
The company stated that the reason for the stoppage is because “the company has exhausted its available funds” after what “several investors” they recently retired “due to concerns from both the economic market and the cryptocurrency market.”
According to the initial announcement about the hiatus, the project had been geared towards an October launch. However, Grant stated that development of the project had been put on hold because the company could not “financially sustain the lawsuits”.
Grant stated that the main reason was due to the changing “economic landscape” for cryptocurrencies, which made it difficult to continue the project that employed “more than 70 people” to work “relentlessly for more than two years” to bring the project to life.
“The cryptocurrency market crash caused investors who were lined up at the beginning of the year to pull out,” what it took to “get to our launch pad,” Grant said.
The game was initially designed to launch with the implementation of non-fungible tokens (NFTs), but plans for it were later dropped outside of an optional external market.
About a year ago, I was approached by @UntamedIsles (a Pokemon inspired MMO-RPG) to help oversee and design their combat system. I think what we came up with is REALLY interesting and a fresh take on the genre, and I’m so excited for everyone to be able to play it.
— Wolfey (@WolfeyGlick) August 5, 2022
This angered many who questioned the legitimacy of using the cryptocurrency market crash as an excuse for the project’s failure if it was based on “gaming first, cryptocurrencies second.”
It is unclear to what extent the project actually planned to integrate cryptocurrencies into the project, however, Grant stated that “until the cryptocurrency situation is resolved – and we trust it will be at some point – we have to hibernate the development of this project.”
the reason i believed in this game was because you said GAME FIRST, CRYPTO SECOND which meant it was independent of crypto. So why is crypto being used as an excuse for not having any more funding?
— zach yonzon (@blackmoonfable) August 19, 2022
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.