Cryptocurrency News

Mechanism Capital Launches $100M P2E Gaming Fund, Hires Former App Store Manager Steve Cho to Lead It

By January 18, 2022 No Comments

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.