%{{tag.tag}} {{articledata.title}} {{moment(articledata.cdate)}} @{{articledata.company.replace(" ","")}} comment More than 90% of Web3 video games have failed as the $15 billion U.S. industry collapses. Web3 gaming involves video games built on blockchain technology that prioritize digital ownership, open economies, and player-driven governance. They also involve cryptocurrency tokens that are embedded in the games. Crypto advocates had touted Web3 gaming as the future of the video game industry. But data from trading firm Caladan shows that 93% of "GameFi" projects have now failed. Crypto token values tied to Web3 gaming are down 95% from their 2022 peak and funding to studios has plunged more than 90%. Investors and studios poured about $15 billion U.S. into tokens and non-fungible tokens (NFTs) tied to Web3 games, building blockchain-based games containing tradable properties. Unfortunately, gamers never bought into the concept and failed to show up, leading to the industry's implosion, say analysts. The situation with Web3 video games worsened as capital shifted into artificial intelligence (A.I.) and asset tokenization. In the end, demand never caught up with the flood of capital. At the height of the industry's hype, only 12% of gamers had tried a crypto game, according to Caladan. The result is that more than 300 games had shutdown by the start of this year, turning Web3 gaming into a cautionary tale about chasing speculation over product demand. Bitcoin (CRYPTO: $BTC ) is currently trading at just under $78,000 U.S.