Crypto Mmorphg Ember Sword shut down the turbulence of the Web3 gaming project despite raising millions of people.
A promising beginning encounters a harsh reality
On May 21, 2025, the Web3 gaming community was shaken by the sudden closure of Ember Sword, a highly anticipated blockchain-based MMORPG developed by Bright Star Studios.
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The crypto game Ember Sword has just announced it will be closed, citing funding challenges and broader market difficulties.
In 2024, Ember Sword raised about $7 million in funding and launched its token ($Ember) on June 13, 2024.
They sold over 40,000 virtual land nfts,… pic.twitter.com/sbzanw0xmq
-Abhi (@0xabhip) May 21, 2025
Ember Sword initially attracted great attention with its ambitious vision for players-powered economies powered by blockchain technology. The game promises to launch NFT and local token Ember on June 13, 2024 to enable players to earn rewards through in-game activities.
The project raised about $7.1 million in investor funds and received guarantees Commitment worth $203 million From 35,000 gamers to 40,000 virtual Land NFTs, sales achieved $11 million.
This is after a successful $1.5 million land sale in May 2023, despite technical challenges due to overwhelming demand. The game also launched its Origins Collection NFT launch and offered early access gameplay in December 2024, sparking optimism in the community.
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Yet despite early pulling, Ember Sword is still struggling to maintain its momentum. The team revealed in a May 21, 2025 announcement that the project cannot obtain the necessary funds to continue development because of its challenging Web3 gaming space. As a result, the game server stopped and Ember Sword’s official Discord channel was closed, leaving the community without updates or support.
Source: X
At least 16 Gamefi projects died in 2025
The collapse of Ember Sword is not an isolated event, but a reflection of systemic problems in the Web3 gaming industry. The 2023 Coingecko report highlighted that 75.5% of Web3 games launched between 2018 and 2023 failed, with an average annual failure rate of 80.8%.
Source: Coingecko
Chainplay 2024 Report An analysis of 3,279 GameFI projects showed that 93% of people died, their all-time highs dropped by 95%, or fell below 100 active users, with an average lifespan of just four months.
Read more: Is the Web3 game dead? Latest Dappradar Report Recommendations
More specifically, at least 16 Web3 games have been suspended, closed, or will be closed in 2025, including: God’s Blade, Metalcore, Blast Royale, Nyan Heroes, and more.
Many users tag Ember Sword as a “pure scam”, pointing to the rapid consumption of funds. Others criticized the trend of Web3 projects for overinspiring using “mega projects” without providing functional games.
As a result, the price of these project tokens does not have a bright future. Nyan Heroes’ Nyan Token fell 99% from the value of ATH.
Ember Sword’s Ember crashed more than 50% in the past 30 days, down 99% from its June 14, 2024 peak.
The wider market environment also plays a role. Since the NFT boom in 2021, the Web3 gaming sector has faced headwinds, with a decline in investor interest and a difficult capital environment. While Ember Sword’s vision of combining MMORPG gameplay with blockchain technology is convincing, the project is unable to cope with these challenges, underscoring the instable nature of the industry.
