Startups

WildWorks, maker of Animal Jam and Feral, angers fans with embrace of crypto gaming

Comment

Image Credits: WildWorks' Cinder

Less than a year ago, WildWorks, the makers of the kid’s virtual world game Animal Jam, launched its next big effort with a game aimed at Gen Z teens, called Feral. But in recent days, the company has angered many of its core users with news that it’s reusing Feral’s technology platform and many of its assets to enter the crypto-gaming space with a metaverse game called Cinder, powered by the Solana blockchain.

The response from WildWorks’ core fans has been far less than enthusiastic to this news for a variety of reasons. Already concerned about Feral’s pace of development and unfinished nature, players are now worried about what it means for Feral’s future now that the company has moved on to build a crypto gaming experience using Feral’s assets. They’re also less than thrilled about the environmental impacts of crypto gaming and NFTs — an opinion which WildWorks CEO Clark Stacey, until recently, had shared.

In a Medium post, Stacey addresses this specific concern among others, noting that he himself had believed that technologies like NFTs were “were irreconcilable with environmental conservation,” and bereft of value to gamers.

However, he says his opinion has since changed as he’s learned more about blockchain developments beyond Ethereum. While Ethereum, like Bitcoin, depends on an energy-intensive “proof of work” system that requires what Stacey called a “ridiculous amount of computer power” to validate its transactions, alternatives have emerged that are iterating on the less energy-demanding “proof of stake” validation systems instead — like Wax, Cardano and Solana.

“Transactions on these blockchains can be more efficient than the credit card networks we use to take payments in most of our games now,” wrote Stacey. “Coupled with WildWorks’ ongoing efforts to offset and reduce the carbon emissions of game development, we’re determined that our use of the Solana blockchain in our new game will not increase the company’s carbon footprint,” he said.

Image Credits: WildWorks’ Cinder

Cinder players will use the Solana blockchain to purchase their “playable NFTs” — the Cinder Fae which will include 11,111 exclusive avatars designed by the WildWorks team. The NFTs feature roughly 150 characteristics of varying rarity across nine categories so each will have a unique look that can’t be duplicated, the Cinder website explains. Players will be able to connect their NFT avatar to Cinder on the day it’s minted to join the free-form MMO’s community and explore the virtual world. The minting is planned for early January. Then, over the next year, players will be able to turn game content they design — like avatars, play spaces and party rooms — into NFTs stored on Solana that can be bought or sold through Cinder’s marketplace.

Though Stacey addressed fans’ concerns around the environmental concerns around crypto technologies, that wasn’t the only reason fans were frustrated with this shift in direction toward crypto.

Many also felt that today’s crypto ecosystems still have a lot to answer to in terms of their other downsides — including their use for money laundering purposes, or how NFTs too easily enable the theft of creators’ art, and the security issues with “altcoins.” Stacey acknowledges there’s some truth to these accusations, but also notes it’s early days for blockchains in general, and that regulation and further development may address these concerns. He also said that there are creators who do want to involve themselves with these new technologies in order to help contribute to solutions that benefit the creator community, and they should have that opportunity.

One such area includes creator-designed avatars and other tradable content, which can be difficult to profit from on current platforms like Roblox, Stacey said.

“[Roblox doesn’t] create gameplay experiences themselves; they aren’t the ones whose creative output is actually engaging players, but they get 75% of what creators earn because they control the platform and own their users’ output. If I make a really cool avatar in Roblox and someone wants to buy it from me, I can’t sell it to them without the platform’s intervention,” Stacey wrote. (The Roblox “cut” is actually a bit more complicated than that, in part because the mobile app stores take their own cut on top of Roblox’s share. But the general point that developers earn a small portion of the overall revenue is an accurate one.)

Cinder’s NFTs would instead allow users to tokenize then sell and trade their creations, retaining more of the total revenue. Stacey, in the Discord AMA, said Cinder’s marketplace will allow players to retain 96% of the transaction, with Cinder only taking 4%.

But many of Feral’s fans aren’t looking for these sorts of explanations or aren’t satisfied with the current responses. They’re largely opposed to crypto and NFTs and are making their views known. This belief system may also have to do with how the fans still view WildWorks as a kid’s game maker — or at the least, a game maker aiming at the under-18 market. Having begun their journey on the kid’s game Animal Jam, they see the company’s move into the crypto-gaming space as an inappropriate one.

However, WildWorks had already signaled its interest in expanding beyond the kids’ gaming market with Feral, which it aimed at teens, not younger children. With Cinder, the market isn’t kids or teens — it’s adults. The company said the new game is meant to attract a similar demographic to those who would play other crypto games like Axie Infinity, The Sandbox, or Blankos Block Party.

More importantly, WildWorks needs revenue to continue its gaming ambitions — Feral or otherwise. Stacey told the Feral Discord community how WildWorks has invested over two years of development and $6 million into building Feral. While it aims to make that a self-sustaining business, that time hasn’t arrived yet.

Stacey admitted to TechCrunch that it became clear while Feral was in Early Access it wasn’t achieving the product-market fit WildWorks had hoped for.

“We reached the point where we couldn’t continue investing in it at the level we had been and stay financially healthy,” he told us. “We didn’t shut the game down, however, because there was a passionate community still playing, and we hoped to find either a new publishing home for it or other means to continue development.”

Cinder could provide that “other means,” if successful — but ironically, Feral may not survive to see that happen because of the fan backlash. Fans are threatening to quit the game and cancel their Animal Jam subscriptions in protest.

Image Credits: Wildworks’ Feral

For some, WildWorks’ shift into crypto gaming was a nail in the coffin, as they took the opportunity to vent about other issues they had with the company. Fans veered into off-topic discussions over perceived failures in WildWorks’ moderation systems, hackers, data breaches and its use of headdresses in Animal Jam — which Stacey acknowledged had been an “ignorant” choice. (The company had discussed the issue with the Native American players who reached out, apologized and agreed that those virtual items would no longer be made or promoted. The company didn’t delete the items from players’ inventory, if already acquired, however.)

The friction between WildWorks’ business needs, coupled with its desire to explore what it sees as the future of gaming, and the real-world reaction from its longtime fans is an example of how difficult it can be for companies to embrace blockchain and crypto technologies. This problem is worsened as the blockchain’s potential can often be obscured by the negative aspects of the industry — or, as Stacey put it the “thieves and grifters and bad art” and the lack of “regulatory guardrails” around crypto developments today.

As for Feral, fans’ concerns over its future seem to be valid. Stacey says if the community continues to support the game, it will find a way to continue building it.

“If they do not, we’ll announce plans to sunset it as soon as that decision is made. It has not been made to date,” he notes. “We understand that many in the Feral community are philosophically opposed to NFTs and blockchain technology in general, but while we’ve attempted to address their questions and concerns, Cinder is being designed for and marketed to a different player. They will lose nothing from the presence of assets we created for Feral also being present in Cinder.”

More TechCrunch

Ever wonder why conversational AI like ChatGPT says “Sorry, I can’t do that” or some other polite refusal? OpenAI is offering a limited look at the reasoning behind its own…

OpenAI offers a peek behind the curtain of its AI’s secret instructions

The federal government agency responsible for granting patents and trademarks is alerting thousands of filers whose private addresses were exposed following a second data spill in as many years. The…

US Patent and Trademark Office confirms another leak of filers’ address data

As part of an investigation into people involved in the pro-independence movement in Catalonia, the Spanish police obtained information from the encrypted services Wire and Proton, which helped the authorities…

Encrypted services Apple, Proton and Wire helped Spanish police identify activist

Match Group, the company that owns several dating apps, including Tinder and Hinge, released its first-quarter earnings report on Tuesday, which shows that Tinder’s paying user base has decreased for…

Match looks to Hinge as Tinder fails

Private social networking is making a comeback. Gratitude Plus, a startup that aims to shift social media in a more positive direction, is expanding its wellness-focused, personal reflections journal to…

Gratitude Plus makes social networking positive, private and personal

With venture totals slipping year-over-year in key markets like the United States, and concern that venture firms themselves are struggling to raise more capital, founders might be worried. After all,…

Can AI help founders fundraise more quickly and easily?

Google has found a way to bring a variation of its clever “Circle to Search” gesture to iPhone users. The new interaction, launched in January, allows Android users to search…

Google brings a variation on ‘Circle to Search’ to iPhone users

A new sculpture going live on Wednesday in the Flatiron South Public Plaza in New York is not your typical artwork. It combines technology, sociology, anthropology and art to let…

Always-on video portal lets people in NYC and Dublin interact in real time

Apple’s iPad event had a lot to like. New iPads with new chips and new sizes, a new Apple Pencil, and even some software updates. If you are a big…

TechCrunch Minute: When did iPads get as expensive as MacBooks?

Autonomous, AI-based players are coming to a gaming experience near you, and a new startup, Altera, is joining the fray to build this new guard of AI agents. The company announced…

Bye-bye bots: Altera’s game-playing AI agents get backing from Eric Schmidt

Google DeepMind has taken the wraps off a new version AlphaFold, their transformative machine learning model that predicts the shape and behavior of proteins. AlphaFold 3 is not only more…

Google DeepMind debuts huge AlphaFold update and free proteomics-as-a-service web app

Uber plans to deliver more perks to Uber One members, like member-exclusive events, in a bid to gain more revenue through subscriptions.  “You will see more member-exclusives coming up where…

Uber promises member exclusives as Uber One passes $1B run-rate

We’ve all seen them. The inspector with a clipboard, walking around a building, ticking off the last time the fire extinguishers were checked, or if all the lights are working.…

Checkfirst raises $1.5M pre-seed to apply AI to remote inspections and audits

Close to a decade ago, brothers Aviv and Matteo Shapira co-founded a company, Replay, that created a video format for 360-degree replays — the sorts of replays that have become…

Controversial drone company Xtend leans into defense with new $40 million round

Usually, when something starts to rot, it gets pitched in the trash. But Joanne Rodriguez wants to turn the concept of rot on its head by growing fungus on trash…

Mycocycle uses mushrooms to upcycle old tires and construction waste

Monzo has raised another £150 million ($190 million), as the challenger bank looks to expand its presence internationally — particularly in the U.S. The new round comes just two months…

UK challenger bank Monzo nabs another $190M as US expansion beckons

iRobot has announced the successor to longtime CEO, Colin Angle. Gary Cohen, who previous held chief executive role at Timex and Qualitor Automotive, will be heading up the company, marking a major…

iRobot names former Timex head Gary Cohen as CEO

Reddit — now a publicly-traded company with more scrutiny on revenue growth — is putting a big focus on boosting its international audience, starting with francophones. In their first-ever earnings…

Reddit tests automatic, whole-site translation into French using LLM-based AI

Mushrooms continue to be a big area for alternative proteins. Canada-based Maia Farms recently raised $1.7 million to develop a blend of mushroom and plant-based protein using biomass fermentation. There’s…

Meati Foods bites into another $100M amid growth to 7,000 retail locations

Cleaning the outside of buildings is a dirty job, and it’s also dangerous. Lucid Bots came on the scene in 2018 with its Sherpa line of drones to clean windows…

Lucid Bots secures $9M for drones to clean more than your windows

High interest rates and financial pressures make it more important than ever for finance teams to have a better handle on their cash flow, and several startups are hoping to…

Israeli startup Panax raises a $10M Series A for its AI-driven cash flow management platform

The European Union has deepened the investigation of Elon Musk-owned social network, X, that it opened back in December under the bloc’s online governance and content moderation rulebook, the Digital Services Act…

EU grills Elon Musk’s X about content moderation and deepfake risks

For the founders of Atlan, a data governance startup, data has always been at the heart of what they do, even before they launched the company. In fact, co-founders Prukalpa…

Atlan scores $105M for its data control plane, as LLMs boost importance of data

It is estimated that about 2 billion people, especially those in lower and middle-income countries, lack access to quality and affordable essential medicines. The situation is exacerbated by low-quality or even killer…

Axmed raises $2M from Founderful to streamline drug supply chains in underserved markets

For decades, the Global Positioning System (GPS) has maintained a de facto monopoly on positioning, navigation and timing, because it’s cheap and already integrated into billions of devices around the…

Xona Space Systems closes $19M Series A to build out ultra-accurate GPS alternative

Bankruptcy lawyers representing customers impacted by the dramatic crash of cryptocurrency exchange FTX 17 months ago say that the vast majority of victims will receive their money back — plus interest. The…

FTX crypto fraud victims to get their money back — plus interest

Google on Wednesday launched its digital wallet in India with local integrations, nearly two years after the app was relaunched as a digital wallet platform in the U.S. As TechCrunch exclusively reported last month,…

Google Wallet is now available in India

Bluesky has launched a new product roadmap for the coming months. The decentralized social network said on Tuesday that it is planning to introduce direct messages, support for videos, improved…

Bluesky to add DMs, video support and in-app custom feed curation

Samsung Medison, a medical device unit of Samsung Electronics that specializes in developing diagnostic imaging devices, said on Wednesday it plans to acquire Sonio, a Paris-based startup that makes AI-powered software…

Samsung Medison to acquire French AI ultrasound startup Sonio for $92.7M

Kyle Kuzma is a lot of things. He’s a forward for the Washington Wizards NBA team and a 2020 NBA champion. He’s also a style icon — depending on who…

NBA champion Kyle Kuzma looks to bring his team mentality to Scrum Ventures