Ember Sword Shuts Down Amid Funding Struggles, Becomes Latest Casualty in Web3 Gaming
The blockchain-based MMORPG Ember Sword has officially shut down, marking yet another high-profile collapse in the web3 gaming space. Despite launching its public early access only a few months ago, the game’s development has come to a halt due to a lack of funding.
In a heartfelt statement on the official Ember Sword website, the development team announced the project’s closure. “We explored every possible way forward,” the message read. “But in today’s market — where even some of the most promising projects are shutting down — we couldn’t find a path to keep building.”
Originally built on the Ethereum network, Ember Sword had made several strategic shifts in its short lifespan — including moving from Polygon to Immutable X, and more recently, transitioning to Mantle, a layer-2 Ethereum solution. Despite these moves, the game will no longer proceed toward a full launch.
Ember Sword joins a growing list of web3 games that have ceased operations this year, such as Deadrop, Nyan Heroes, and Tatsumeeko — all of which faced similar financial or market-driven hurdles.
The shutdown is particularly surprising given Ember Sword’s initial hype. Back in 2021, the project raised over $203 million in NFT land sales from approximately 35,000 players, creating significant buzz in the crypto gaming space. The team also had strong industry backing, including veterans like Rob Pardo, former chief creative officer at Blizzard Entertainment and lead designer of World of Warcraft, and Dennis “Thresh” Fong, a pioneering esports figure.
Following the shutdown news, the game’s native token, EMBER, has seen a slight dip, falling 3% in the last 24 hours. As of May 23, 2025, EMBER is trading at $0.00047, down over 99% from its peak value of $0.068. The token’s market cap now sits at just $80,657, highlighting the sharp decline in investor confidence.
In their closing remarks, the Ember Sword team expressed gratitude to their community: “This isn’t the ending any of us wanted. But we wanted to sincerely thank you for being here, for believing in this vision, and for helping make Ember Sword something we’ll never forget.”
What are your thoughts on the current state of web3 gaming? Is this just a market correction, or a sign of deeper industry challenges? Let us know in the comments below!
