NFT Exit: Neopets Cancels Game Despite Crypto Investment of $4 Million

Despite raising $4 million in funding from crypto firms such as Polygon and Avalanche, Neopets is shying away from NFTs and making a game that better reflects their values and vision. This shift has left the community puzzled. Here’s everything you need to know.

TL;DR

• Neopets garnered attention with its NFT game backed by $4 million in crypto funding. However, the highly anticipated Neopets Metaverse was abruptly canceled, and the company is now focusing on a non-crypto mobile game called World of Neopets. Thus, leaving the community puzzled about the reasons behind this major shift.
• The Neopets CEO, Dominic Law, previously emphasized the potential of NFTs and play-and-earn gaming in the Neopets franchise. The alpha version of Neopets Metaverse was in progress, with over 9,000 Solana NFT sales and support from prominent investors like Polygon Ventures and Avalanche’s ecosystem fund.
• Despite the cancellation, Neopets expressed gratitude to its NFT holders and promised perks like in-game currency and digital items. The decision to move away from NFTs came after facing community backlash and criticism from publications. Thus, leading the company to re-evaluate its direction and prioritize its fans’ values and wishes.

Neopets Cancels NFT Game Despite $4 Million in Funding

Known for its virtual pet simulator web game, Neopets made headlines with its NFT game venture, backed by $4 million in crypto funding. However, the highly anticipated Neopets Metaverse was suddenly canceled. Now, the company is opting to create a non-crypto mobile game named World of Neopets. The decision has left the community puzzled, wondering what led to this dramatic change.

A few months ago, Neopets’ CEO, Dominic Law, was vocal about the play-and-earn concept in Web3 gaming and the potential for NFTs in the Neopets franchise. The alpha version of Neopets Metaverse was already in development, attracting over 9,000 Solana NFT sales. In addition, it received investments from big names like Polygon Ventures and Avalanche’s ecosystem fund.

In a blog post, the Neopets Team, known as TNT, revealed the shift away from NFTs to a game that better aligns with their values and community’s wishes. They publicly assured that they did not take the decision lightly. With a new leadership team in place, including Dominic Law as CEO, the company claimed it would operate independently for the first time in 18 years, under the name World of Neopia, Inc.

Despite the cancellation, Neopets expressed gratitude for the support around its NFT collectibles and promised perks for NFT holders. These perks include in-game currency and digital items on the platform. However, questions linger regarding refunds and benefits in the new game.

The pivot away from NFTs came after facing backlash from some community members who viewed NFT games as scammy.  Also, many community members criticized the NFT community as a whole. Neopets faced fierce criticism from publications as well. Some even described its NFT venture as “harmful” and “fracking your child’s memories.”

While Neopets previously believed in the potential of NFTs and play-to-earn features, it has now taken a different path. The decision reflects the evolving nature of the crypto world and the importance of listening to the needs of fans to ensure a brighter future for Neopets.