Web3 MMORPG ChronoForge Shuts Down After Funding Shortfall
ChronoForge, a Web3 MMORPG developed with support from the Rift Foundation, will cease operations on December 30, 2025 after failing to secure ongoing funding and sufficient token utility. Rift Foundation raised over $3 million via a RIFT token sale to support the game’s token ecosystem, but persistent financial strain forced founders to finance development personally and cut staff by about 80%. Industry headwinds intensified the project’s troubles: Web3 gaming funding fell sharply (a 93% year‑on‑year decline to $73 million in Q2 2025), daily active wallets dropped 17%, and investor appetite moved toward AI and infrastructure — roughly 75% of recent crypto funding flowed to infrastructure rather than games. Observers say ChronoForge’s shutdown exemplifies broader GameFi challenges, including poor profitability, difficulty retaining developers, weak token utility, and an overall contraction in the Web3 dApp sector. For traders, the closure signals continued investor caution toward GameFi tokens and NFTs tied to active development and player growth, and suggests ongoing consolidation in blockchain gaming.
Bearish
The shutdown of ChronoForge is bearish for the tokens and NFTs directly tied to the project (RIFT and any ChronoForge NFTs) because it removes the core utility and development roadmap that underpins token value. Short term, expect sell pressure as holders unwind positions and collectors attempt to liquidate illiquid NFTs; secondary markets may see widened spreads and lower bids. Medium to long term, the closure reinforces negative sentiment toward GameFi projects broadly—highlighting financing risks, poor token utility, and difficulty retaining teams—which can reduce speculative demand for similar gaming tokens. Broader market impact is likely limited to the GameFi niche rather than major layer‑1 tokens, but projects without sustainable economics or active development face elevated delisting and market‑liquidity risk. Traders should monitor on‑chain activity (wallet withdrawals, token transfers to exchanges), NFT floor prices, and any token‑burn or migration announcements; risk management should include trimming exposure to project‑specific assets and favoring liquidity and infrastructure tokens that continue to attract funding.