Quick take:
- YGG has raised $13.8 million in a funding round co-led by A16z Crypto and DWF Labs.
- The company will use the funds to accelerate the development of its soulbound token (SBT)
- SBT tokens can be used as proof of someone’s achievements, credentials and reputation in a gaming ecosystem.
Yield Guild Games (YGG) has closed a $13.8 million token sale in a round led by A16z Crypto and DWF Labs. The play-to-earn gaming group said it will use the funds to accelerate the development of its soulbound reputation token (SBT).
This is not A16z’s first investment in YGG, in 2021, the web3-focused venture firm invested $4.6 million. The company was founded in 2018 as an NFT gaming asset manager and investor.
The company specialises in the sale and rental of its in-game assets for profits or yield. It is the biggest in-game asset manager and investor in the popular Phillipines-based NFT game Axie Infinity.
The SBT tokens were test-launched last year but were only offered as rewards for in-game activities.
SBT tokens are permanently linked to a person’s wallet, making them non-transferable, YGG co-founder Gabby Dizon told Tech in Asia. According to the company, plans are up and running to place the tokens directly into games.
YGG will reward creators with SBT tokens for completing selected tasks or quests. The company is launching a revamped version of its web app in March, with the Soul token expected to play a big role in the guild’s ecosystem platform.
Although YGG did not disclose the actual number of tokens sold during the latest fundraising, the sale is estimated to have accounted for more than 35% of its estimated total asset value of $25 million in its treasury as of November 2022.
Dizon also said even after the sale, YGG still controls 45% reverse of the firm’s token’s maximum supply.
Last March, YGG teamed up with ForN to launch its Japan-focused subDAO, YGG Japan. This followed the company’s first subDAO, YGG SEA (South East Asia) launched in January 2022.
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