Few areas in technology today are as polarized as the blockchain playing field. Legacy developers and gamers are calling games Ponzi schemes to get gaming, while crypto-believers say games that incorporate “tokenomics” are the future to empower gamers and creators.
Before the debate is resolved, the ecosystem around blockchain games is being built and funded.
Los Angeles-based Stacked is a video streaming platform for gaming content founded by serial entrepreneur Alex Lin — essentially Twitch for Web 3 users, the founder and CEO told TechCrunch. The idea is to change the shareholders of the platform by giving the creators management signals, a model that “aligns the needs of content operators and creators for the first time,” Lin pointed out.
Creators don’t need to be crypto-savvy to use the service. The platform on mobile and desktop will be similar to a traditional video streaming platform, Lin said. Tokens are rewarded based on performance metrics, and the management team ensures that Stacked is always owned by creators rather than investors.
Stacked’s vision attracted a group of investors to raise $12.9 million in a Series A funding round. Pantera Capital, which earlier made its name investing in digital assets and crypto ventures, led the financing.
Other institutional investors include LINE Ventures, a merger with Japanese messaging giant LINE, and Z Venture Capital, which owns Yahoo! Japan. GFR Fund, owned by Japanese mobile game company GREE, also participated.
Alexander Wang, founder of Scale AI, Eddie Lu, CEO of GOAT and Carl Pei, founder of OnePlus and Nothing, joined as angel investors.
Lin didn’t intend to develop Stacked for the crypto crowd, but Pantera Capital has convinced the founder that blockchain will play a crucial role in the next generation of mobile games. The founder is suspicious of certain P2E games that tend to exploit users, but recognizes that high-quality titles will eventually emerge, as free-to-play has gone from a widely despised monetization strategy to a successful genre.
Newly capitalized one-year-old Stacked is setting up its video streaming service with crypto and NFT features. It is scheduled to launch in North America in December, before rolling out to Southeast Asia and Latin America.
Even though it’s only a Series A round of funding, it’s not hard to see a potential collaboration between Stacked and some of its investors. LINE, for example, has a strong user base in South-East Asia that could benefit Stacked’s expansion, and Nothing, the buzziest Android phone maker, has shown strong interest in NFTs. In addition to its content streaming service, Stacked is also working on an NFT profile picture project targeting “gaming and streetwear fans.”
Having founded two ventures in the past – YC-backed mobile gaming company LVL6 and social marketing mobile app Hush – Lin has seen enough market volatility not to be too upset about the current crypto bear market. “We’ve definitely seen the company’s valuations get squeezed right now,” the founder said. “But prices are normal.”
