https://techcrunch.com/2022/08/08/twitch-founder-justin-kan-on-crypto-web3-video-games-business-model-profit-play-to-earn/

Top crypto VCs are constantly touting the potential of video games as one of the most compelling use cases for blockchain technology. Andreessen Horowitz partner Arianna Simpson, for example, who led the firm’s investment in crypto game Axie Infinity, has given countless interviews citing the play-to-earn model as a key catalyst to attracting “hundreds of millions” of people into web3. 

Axie, the highest-profile play-to-earn video game, suffered one of the largest crypto heists to date this past March when North Korean hacker organization Lazarus Group drained ~$625 million from the game’s Ethereum-based Ronin sidechain. Since then, crypto markets as a whole have gone through a severe price downturn and a subsequent recovery in the past month. So where does that leave web3 gaming and the play-to-earn business model?