Metaverse Magna Raises $3.2 Million for an African Gaming DAO
Nestcoin, an Africa and emerging markets-focused crypto ecosystem raised money in a pre-seed round early this year that will go into building, operating, and investing in web3 applications such as the gaming guild Metaverse Magna (MVM) and the crypto content platform Breach Club.
Metaverse Magna, which was launched in December last year, has now completed a seed sale token round worth $3.2 million at a diluted valuation of $30 million.
The MVM is a product of a partnership with the multistrategy blockchain investment fund Old Fashion Research (OFR). Also participating in this funding round were investors such as the South Korean video game developer Wemade, Hashkey, LD Capital, the Japanese blockchain-focused venture capital firm Gumi Cryptos Capital (gCC), Polygon Studios, Tess Ventures, AFF, IndiGG, and Casper Johansen (Spartan).
In a statement, MVM says that the funding will go into expanding its efforts to develop what it calls “Africa’s largest gaming DAO” and to also deliver access to world-class opportunities to gamers.
There are more than 3 billion gamers from across the world and they spend over $200 billion annually on consoles as well as in-app purchases like NFTs. The emerging markets, including those in Africa, currently make up 30% of this number. For platforms like MVM, games are the logical gateway for onboarding millions of users into Web3.
The gaming DAO is currently involved in publishing mobile games in frontiers markets while also creating developer tools that game creators can deploy for emerging business models in Web3 gaming.
The gaming DAO works as an independent organization in the broader Nestcoin ecosystem, according to Nestcoin CEO Yele Bademosi. Last year, Nestcoin raised $6.45 million in a funding round.
According to Bademosi, gaming DAO offers Africa’s mostly young and unemployed youth an opportunity to earn money and help combat poverty in their families. He states that the seed sale token offered by MVM opens up opportunities for millions of gamers in these emerging markets.
The gaming DAO began as a gaming guild that provided play-to-earn scholarships to more than 1,000 gamers, with many earning up to $1,000 per month from the free-to-play Web 2.0 games and crypto games such as Pegaxy and Axie Infinity, and has since grown to a 100,000-member community in an ecosystem that consists of more than 2,000 gamers, 10,000 Telegram, and 20,000 Discord members, the platform states in its pitch to users.
MVM says it is developing a social gaming app called Hyper that will also launch soon.
In an interview, Bademosi said the gaming DAO platform is in the process of launching 10 Web 2.0 games (these are mostly hypercausal games in different genres) such as Candy Blast Wordler (which is a version of Candy Crush), Electron Dash, and Kong Club.
Bademosi has given a tentative launch timeline of 12 months for its tokens. He also added that these tokens would be locked for 12 months after the Token Distribution Event. These tokens will also be unlocked in quarterly installments of 30 months.
Bademosi also promises that additional details on the utility of the MVM governance token will be released to the platform’s member community as part of the startup’s “build in public” ethos.
Wemade CEO Henry Chang stated that his company’s partnership with MVM will create an opportunity to expand the WEMIX (Wemade’s global blockchain gaming platform) ecosystem across Africa to tap into the continent’s fast-growing market. Wemade believes that gaming guilds will be some of the top mainstream DAOs and will play a crucial role in game tokenomics.