Despite $203 Million Ethereum NFT Sales, Ember Sword Game Unable to Sustain Operations, Shuts Down

Ember Sword Shuts Down After $203 Million NFT Boom Fails To Deliver Long-Term Success

Ember Sword, a blockchain-based MMORPG built on Ethereum, is closing its doors after nearly four years of development and fundraising.

The Denmark-based studio behind the game, Bright Star Studios, announced it could no longer secure the funding necessary to continue, despite having raised more than $203 million from virtual land NFT sales in 2021.

The company stated on its website,

“We were ultimately unable to secure the funding needed to continue. We explored every possible way forward. But in today’s market—where even some of the most promising projects are shutting down—we couldn’t find a path to keep building.”

The closure highlights the challenges facing crypto games, even those that once attracted significant investment and attention during the metaverse boom.

How Did Ember Sword Attract Such Large Investment

Originally launched in 2018 under the name So Couch Studios, Ember Sword positioned itself as a decentralised MMORPG where players could buy, trade, and own in-game assets as NFTs.

The game caught the eye of investors early on, raising $700,000 in a pre-seed round in 2020, followed by an additional $2 million from notable figures including Twitch co-founder Kevin Lin, YouTube personality Dr Disrespect, and Rob Pardo, former Blizzard executive and lead designer of World of Warcraft.

The most remarkable fundraising moment came in mid-2021 with the sale of virtual land NFTs, generating more than $203 million from around 35,000 buyers.

This placed Ember Sword among the top contenders in the metaverse space alongside platforms like The Sandbox and Decentraland.

Why Didn’t The Huge Funding Keep Ember Sword Alive

Despite the impressive financial backing, Ember Sword struggled to turn investment into a finished, polished game.

From 2021 through to its closed beta launch in July 2024, player feedback was largely negative.

Gamers criticised the visuals and gameplay mechanics, with one reviewer saying the game “still had a long way to go in nearly every facet of its gameplay.”

Players on social media described the shutdown as “inevitable” given the repeated issues during beta testing.

These setbacks, combined with the decline in market enthusiasm for metaverse projects and NFTs, made it difficult for the studio to attract further funding or sustain operations.

What Happened To Ember Sword’s Token And Community

The game’s native token, EMBER, has collapsed alongside the project’s fortunes.

Over the last 24 hours, its market value dropped by more than 2%, leaving it with a market cap of just $82,000 — a decline of over 99% from its peak.

The community has been left with little to no support as servers are shut down and Discord channels are restricted.

The studio said in its farewell message,

“This isn’t the ending any of us wanted. But we wanted to sincerely thank you for being here, for believing in this vision, and for helping make Ember Sword something we’ll never forget.”

Ember Sword Is Part Of A Larger Wave Of Crypto Game Failures

Ember Sword’s shutdown is not an isolated case.

In recent weeks, multiple blockchain games have announced closures or halted development due to financial strain.

Solana-based shooter Nyan Heroes closed after failing to secure funding despite boasting over one million players in play tests.

Blast Royale, another crypto title, is ending development but will become open-source for others to continue work.

Similarly, the role-playing game Tatsumeeko has ceased development to focus on other projects.

In July, Gala Games confirmed The Walking Dead: Empires would shut down, continuing a trend of high-profile crypto games winding down.

These developments suggest that despite early hype and significant investment, sustaining blockchain gaming projects remains challenging amid shifting market conditions and player expectations.