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A Web3 Game Backed by YZI Labs Gets Cancelled Despite $7.5 Million Funding

2 mins
Updated by Landon Manning
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In Brief

  • Tatsumeeko abruptly ended development despite raising $7.5 million in seed funding, citing complex challenges and unmet core goals.
  • The community reacted with anger and rug pull accusations, though developers promised asset transition to a new game, Project: Wander.
  • Overambitious goals and platform fragmentation led to delays; the studio shifts focus to a Discord-centered new project with uncertain features.
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Tatsumeeko, a blockchain game with many prominent crypto investors, suddenly ended its development. Despite an impressive $7.5 million seed funding round in 2022, the project did not ultimately bear fruit.

The game’s fan community got angry with this sudden announcement, with some long-term investors even suspecting a rug pull. Developers have already begun another game, so the studio isn’t closing altogether.

Web3 Game Tatsumeeko’s Development Ends

When Tatsumeeko first began development, it attracted a lot of interest with its blockchain-based community gaming concept. Early sponsors included Binance Labs (now an independent firm, YZi Labs), Animoca, DeFinance Capital, and major angel investors like the co-founder of Twitch.

Today, however, one announcement confirmed the project’s cancellation.

The team was surprisingly vague about why it ended Tatsumeeko’s development. Instead, it mostly claimed that the next project will begin immediately. This game will be called Project: Wander, and its community integration will focus on Discord.

Few other details are available; it isn’t even clear if Ronin, a blockchain GameFi protocol, will continue powering the next game.

When the announcement first hit social media, community responses were fairly vitriolic. Several fan accounts even accused the team of conducting a rug pull scam. However, Tatsumeeko’s developers were fairly active in responding to aggrieved supporters.

Apparently, a recurring problem in Tatsumeeko’s development was setting overambitious goals. The community aspect was always Discord-focused, but side projects also explored Telegram’s GameFi potential.

This parallel development on wholly different platforms was a stated reason that the main game got abandoned.

Several supporters also expressed concern about the resources already invested in Tatsumeeko’s development. In addition to seed funding, supporters participated in daily quests and other typical GameFi interactions in the hopes of earning future rewards.

The announcement claimed that these users would see their “assets transition into new forms of utility and value” in the next project.

Despite these assurances, it’s easy to see why the game’s fans might remain skeptical. Despite beginning development with high enthusiasm in 2022, Tatsumeeko’s activity gradually tapered off. Before today’s cancellation announcement, the firm’s last social media post was nearly two months ago.

Still, the studio isn’t fully dead. Existing investors can theoretically look forward to this next game, in the event that it has better success. For the moment, tensions remain high.

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Landon Manning
Landon Manning is a Journalist at BeInCrypto, covering a wide range of topics, including international regulation, blockchain technology, market analysis, and Bitcoin. Previously, Landon spent six years as a writer with Bitcoin Magazine and co-authored a Bitcoin maximalist newsletter with 30,000 subscribers. Landon holds a Bachelor of Arts in Philosophy from Sewanee: The University of the South.
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