ChronoForge Shuts Down as Web3 Gaming Faces Market Strain
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
ChronoForge, a Web3 game studio known for a multiplayer action RPG focused on onchain asset ownership, announced it will shut down all services by Dec. 30. The closure follows months of financial difficulties, including an 80% staff reduction and founders funding development out of pocket since July. The studio cited funding shortfalls, poor Web3 gaming sentiment, and other headwinds as reasons for the shutdown.
Why it matters
The shutdown highlights the severe financial challenges and declining developer and user interest impacting the Web3 gaming sector amid the current market downturn. This case reflects broader struggles in GameFi caused by weak funding and token price declines. The source does not elaborate on specific market or policy implications.
Key context
ChronoForge was developed by Minted Loot Studios with an affiliated entity, Rift Foundation, which raised over $3 million through the sale of the RIFT token. The project launched in 2022 with an NFT collection and community-building initiatives. The Web3 gaming sector, also called GameFi, has seen a sharp decline since its 2022 bull market peak, with 93% of projects defunct by late 2024 and token prices down 95%. Venture capital interest has waned, with many investors incurring losses. Despite challenges, data shows GameFi remained one of the most active Web3 sectors in October 2025.
Key numbers and entities
ChronoForge, Minted Loot Studios, Rift Foundation, RIFT token ($3 million raised), Abhishek Pawa (founder of AP Collective), ChainPlay (blockchain gaming platform), DappRadar (data provider). The studio cut staff by 80%, and by late 2024, 93% of Web3 game projects were defunct with token prices down 95%.
What remains unclear
The source does not specify whether any efforts to revive ChronoForge might occur or detail the impact on existing players or token holders. It also does not clarify broader regulatory or strategic implications for Web3 gaming beyond financial challenges.