Alternative investment firm Mechanism Capital is the latest entrant to the increasingly competitive crypto gaming investment space. The company that was founded with a focus on decentralized finance (DeFi) in 2020 has just announced “Mechanism Play,” a new $100 million investment unit that is betting on the long-term success of Play-to-Earn (P2E) gaming projects.
Key takeaways:
- Prior to launching the fund focused on crypto gaming, Mechanism Capital has made a series of highly lucrative investments in the GameFi space, including Ember Sword, Merit Circle Start Atlas, and Yield Guild Games.
- The company has hired Steve Cho, a former Apple App Store manager with extensive experience in “NFTs and blockchain gaming,” to help lead the newly formed venture unit in the right direction.
- According to a press release, Mechanism Capital plans to pursue investments in P2E gaming projects, particularly those offering their services in the mobile space.
- “Play-to-earn has barely penetrated the gaming market, but we expect this to change in the next few years with mobile leading the way,” commented Andrew Kang, co-founder of Mechanism Capital.
- In addition to playing the role of a financial backer, the company intends to employ a hands-on approach, forming direct partnerships with gaming studios and playing a part in game development.
- Blockchain gaming is one of the quickest developing sectors in the broader crypto industry. As such, several notable investors have recently announced their long-term commitment to the space. For instance, both Solana Ventures and Gala Games launched their respective $100 million gaming funds in the past month.
