CryptoKitties, a blockchain-based virtual game, has received $12 million in funding from investors spearheaded by venture capital firm Andreessen Horowitz and Union Square Ventures.
Cryptokitties revealed last week that it would spin out of Axiom Zen, its developer, and received $12million in a Series A funding round that was led by Andreessen Horowitz and Union Square. Both investors are quite experienced in the crypto industry.
Since its release on November last year, Cryptokitties’ unexpected popularity confused a lot of people. The game is pretty simple: users create and breed virtual cats and the blockchain stores the digital genetic material while new generations of kitties are created. Users can buy and sell these cats using Ethereum, which means, you need to buy that coin in order to play.
Although neither Horowitz nor Union Square are revealed to have a direct stake in Ethereum, they have invested in funds that do.
Union Square describes Cryptokitties as “the world’s first and most successful consumer blockchain product.”
Fred Wilson, partner at Union Square, believes that “digital collectibles is one of many amazing things that blockchains enable that literally could not be done before this technology emerged,” he said.
A Cryptokitties executive also believes in the game’s potential and considers it as a new way to get new consumers into blockchain
“We really do believe that decentralization is going to have a dramatic and powerful impact on the human experience,” said CryptoKitties’ chief creative officer, Mack Flavelle. He then added that Cryptokitties was an example of a successful attempt to make a wildly new concept approachable to the public.
One reason for the game’s success may be due to it being a profitable venture for some. An estimated $23.2 million worth of Cryptokitties have been traded and sold since the app’s launch. As of the moment, the single most valuable kitten was sold for approximately $110.707.