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Sky Mavis-backed blockchain game Axie Infinity lowers its $150 M funding objective

After being able to compensate every user who was impacted by the Ronin Network hack, Sky Mavis, the company behind the well-known blockchain game Axie Infinity, has scaled back a US $150 million funding round.

A security flaw on the Ronin Network in March 2022 led to the theft of 173,600 ether and about $25.5 million in USDC. At the time, the stolen tokens had a market value of about US $620 million.

The US $150 million funding round was announced by Sky Mavis in April 2022, just one week after the hack. The business asserted that it was able to replenish the Ronin Network bridge and compensate each user using its own balance sheet.

In the funding round headed by a16z and Animoca Brands, the developer only succeeded in raising US $11 million.

According to VentureCap Insights, which monitors regulatory filings in Singapore, this has reduced Sky Mavis’ valuation from US $3 billion to US $1.95 billion.

“We wanted to honour the terms originally offered,” a Sky Mavis spokesperson said. “We were able to make all users whole with internal funds.”

In order to increase security, the Ronin Network was upgraded to a delegated proof-of-stake model earlier this year. At the time, Sky Mavis announced that four-game studios had joined and were now creating and releasing games on the network.

 

 

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