a16z and DWF Labs lead $13.8m YGG funding round

DWF Labs, the investment arm of cryptocurrency trading platform Digital Wave Finance (DWF), has taken the lead along with Andreessen Horowitz’s a16z Crypto fund in a $13.8m token purchase from the treasury of blockchain gaming guild Yield Guild Games (YGG).

Galaxy Interactive, Sangha Capital Fund, Sanctor Capital, and angel investor David Lee also participated in the round. YGG did not disclose how many tokens it sold but they are estimated to account for at least 35% of the total $25mn asset value held in its treasury as of November 2022.

Founded in 2018 by gaming industry veteran Gabby Dizon and fintech entrepreneur Beryl Li, YGG coordinates players of blockchain-based play-to-earn (P2E) games around the world to help each other onboard and earn cryptocurrency-based rewards. YGG also invests in gaming non-fungible tokens (NFTs), such as in-game items and virtual land, that it rents to members to use in their gameplay to generate profits or yield.

Dizon co-founded YGG after he started lending his own Axie Infinity NFTs to other players who could not afford to buy their own to enter the game. YGG has since become the biggest in-game asset manager and investor in the popular P2E game.

YGG incorporated in Switzerland in 2022 to adopt a flexible, non-profit legal structure as part of its move towards decentralization, providing validity for YGG token holders as members of the association with the power to vote on governance.

“The token purchase signals the confidence of our partners in YGG’s mission of empowering gamers through web3 gaming,” said YGG co-founder Gabby Dizon. “The purchase will support the progress of the guild’s initiatives as it aims to provide the web3 community with valuable products and experiences.

YGG will use the funds to develop its soulbound reputation token (SBT), which will become a major part of its ecosystem platform. SBT tokens are linked to a user’s crypto wallet permanently. YGG carried out a test launch of the tokens last year as in-game rewards and plans to launch an upgraded version of its web app in March. Creators will receive SBT tokens as rewards for completing certain tasks or quests.

“We have committed to support YGG as part of our vision towards a blockchain-based economy through web3,” said Andrei Grachev, Managing Partner at DWF Labs.

As a multi-stage web3 multi-product ecosystem, DWF Labs provides arrange of services including consulting, cybersecurity, smart contract audit process, debt financing, and treasury management. It also provides trading solutions such as token listing, over the counter (OTC) trading, and liquidity support for clients through its partners in different verticals.

DWF Labs has supported more than 50 web3 projects and collaborates with top cryptocurrency exchanges such as Binance and ByBit.

“We believe that blockchain has the potential to transform the gaming industry by enabling players to own their own assets and earn rewards,” Grachev added. 

“Through YGG’s partnerships with NFT games and ecosystems like Axie Infinity, The Sandbox and League of Kingdoms, the guild is at the forefront of blockchain-based game economies. Our goal is to support YGG and help the guild expand its offerings such as the Guild Advancement Program to connect even more players and provide them with an opportunity to participate in a decentralized gaming ecosystem and get rewarded from their gaming activities.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.