CryptoKitties, the Ethereum-based, decentralized application (dapp) that allows users to purchase, collect, breed and sell various types of virtual cats, recently closed a $15 million fundraising round from top investors including Venrock, Samsung Next and GV, the venture arm of Alphabet.
With the latest investment, CryptoKitties has launched a parent company, Dapper Labs, to expand its decentralized applications platform.
Samsung, Alphabet's GV, and Venrock Just Put $15 Million Into CryptoKitties https://t.co/VPfRTy0L31
— Dapper Labs (@dapper_labs) November 1, 2018
According to a report in Forbes, the company plans to use the new capital to attract more users to the game, in addition to opening a new office in Los Angeles. Dapper Labs is also looking to partner with major brands and influencers to further expand its reach, as they believe that games are key to bring awareness to crypto.
“Games are the way you understand how to use new tools. Solitaire taught drag-and-click. Minesweeper taught right click on a mouse. The original version of Hearts taught networking,” said Dapper Labs CEO Roham Gharegozlou.
CryptoKitties is easily the most well-known blockchain game in the public domain, with integrations in notable products including HTC’s Android phones and the Opera wallet that is associated with the popular browser. Dapper Lab’s website also notes that it is planning on releasing non-kitten related products in the near future.
“Collecting is an incredibly large hobby from baseball cards, to art, to wine, to trinkets, to stamps. It’s widespread, and it’s something the species does. This is the thesis that they can effectively be a platform company for the launch of many, many different kinds of digital collectibles,” added David Pakman, a partner at Venrock.
While investors are dumping millions into the company, data shows that CryptoKitties’ users have dropped-off over the last year, as more expansive blockchain games have entered the market. Currently, the game only sees roughly 300-400 daily active users.
Despite these low numbers, the startup has now raised $27.9 million since launching in November 2017.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.