YGG raised $13.8 million in a new token sale round led by A16Z Crypto.
The funds would be used to fast-track the development of YGG’s Soulbound token.
THE SBT token will power numerous activities within the YGG ecosystem.
YGG raises nearly $14 million in a token sale round
Yield Guild Games (YGG) has revealed that it raised $13.8 million in a token sale round led by A16z Crypto and DWF Labs. According to the play-to-earn gaming guild, the funds would be used to accelerate the development of its soulbound reputation token (SBT).
YGG is popular for selling and renting its in-game assets for profits or yield. The company is also the biggest in-game asset manager and investor in the popular NFT game Axie Infinity.
The company is yet to fully launch its SBT token. Last year, YGG test-launched the tokens, offering them as rewards for in-game activities.
SBT tokens are unlike other cryptocurrencies as they are permanently linked to a person’s wallet, ensuring that they remain non-transferable. YGG co-founder Gabby Dizon told Tech in Asia that the company has plans to place the tokens directly into games.
YGG to reward creators with SBT tokens
The company added that it intends to reward creators within its ecosystem with SBT tokens for completing selected tasks or quests. YGG plans to launch a revamped version of its web app next month, and the SBT token will serve as the native token of the ecosystem.
While the company didn’t reveal how many tokens it sold to raise $13.8 million, experts estimate it to be more than 35% of its total asset value of $25 million in its treasury as of November 2022.
The co-founder assured community members that following the recent token sale, YGG still controls 45% of the token’s maximum supply.
This latest cryptocurrency news comes after YGG partnered with ForN to launch its Japan-focused subDAO in March 2022.
In July 2021, YGG raised $12.5 million in a token sale round that lasted barely 30 seconds. This isn’t the first time A16Z has invested in YGG. the web3-focused venture capital firm invested $4.6 million in YGG in 2021.