The video game company ‘Phat Loop Studios’ has come under fire for abandoning its Kickstarter and crypto-funded MMORPG game called ‘Untamed Isles’. They now deny all allegations that the money raised from their lenders was lost by investing in crypto.
All funds raised will be spent on video game
Untamed Isles is a bit of a Pokémon-like video game with an open world and online. For example, you can capture different types of monsters and use them to engage in battles. However, some of the community are now accusing the developers of spending the raised funds to bet on the crypto markets.
However, the developers have now a statement let them know that they support their project. On Kickstarter, they raised a whopping $841,000 NZD, or roughly $519,000. According to the team, all of these funds will be spent by the studio on the video game.
Funds are exhausted
Currently, game development is reportedly on hiatus. This is because the company has exhausted all its available funds. This is because several investors have pulled out due to concerns about both the economic and crypto markets.
The game project was on its way to its release which was originally scheduled for this October. However, due to no longer meeting all financial requirements, this release is now being moved. It is not yet known when the video game will be released, if this will be the case at all. At its peak, the company employed more than 70 employees, who worked on the game for over 2 years.
Due to the crash of the crypto market, several investors have chosen to withdraw. However, these investors were instrumental in the final stages of the game’s release. Originally, the video game was designed to start with an NFT implementation. However, the plans for this have been withdrawn.
Game company legitimacy questioned
Because the development of the game is suddenly interrupted just before release, some of the investors and crypto community have doubts. Many now question the legitimacy of the company. For example, they would use the crash as an excuse for the failure of the project.
Finally, it is not known to what extent the project actually wanted to implement the crypto implementation. However, the team emphasizes that this is still the plan.