Crypto’s Biggest Collapses of 2025

Crypto Gaming Faces Challenges as Multiple Games Shut Down

The crypto gaming industry has been experiencing a growing trend of games and studios shutting down. Game creators are struggling to find funding to complete development, among other commonly cited issues. Once-promising blockchain games like Deadrop, Nyan Heroes, and Ember Sword top the list of games that have ceased operations.

Key Issues in Crypto Gaming

While crypto gaming has long been seen as a key use for blockchain, letting gamers really own and freely trade their unique items and perhaps profit from a game’s success, developers are struggling to sustain their games and digital economies. Some games, like Gunzilla Games’ Off the Grid, have punched through to a broader audience, gaining adoption from top streamers and gamers alike—albeit ahead of full blockchain integration. However, many other games and studios building with tokens are struggling to find players and maintain funding.

Deadrop: A Cautionary Tale

Deadrop game developer Midnight Society announced that it was closing shop in January. The studio, which had previously removed co-founder Dr. Disrespect in 2024 after alleged misconduct, gave employees just two days’ notice, according to an employee post on X. The extraction shooter game spent around two years in early access, selling players NFT access passes on Ethereum (ETH) scaling network Polygon (MATIC), as well as other non-NFT items that ultimately became useless.

Ember Sword: A Lack of Funding

Ethereum (ETH) game Ember Sword at one point received more than $200 million in pledges for an NFT land sale, conveying the level of hype around metaverse gaming land NFTs in 2021. However, the final sale brought in much less than that, and in May, the game was ultimately shut down. Developer Bright Star Studios cited a lack of funding in its closing announcement—a common theme among crypto games ceasing development of late.

Nyan Heroes: Closure and Token Devaluation

The Solana (SOL) cat-mech shooter game Nyan Heroes ended its run in May, as well. The game, which had racked up more than 250,000 wishlist additions across PC gaming platforms, was unable to secure the necessary funding to complete development and push ahead with its planned full launch next winter. Its closure rendered its NYAN

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