Regulatory uncertainties in the U.S. around digital assets have prompted California-based game studio Mythical Games to take a conservative approach to the use of cryptocurrencies and related services in its games, its chief executive officer John Linden told Forkast in a group media interview on April 20.
“If there was a very, very clear rule, I think we would have tried other stuff,” said Linden, who revealed that the company is planning a traditional equity fundraising with no plans for initial coin offerings (ICO) in which companies issue crypto tokens to gather investments.
U.S. authorities have been clamping down on the crypto sector, in spite of multiple statements from crypto service providers that expressed confusion on seemingly unclear standards of enforcement, especially on the classification of cryptocurrencies and related services as financial securities.
Coinbase, the largest cryptocurrency exchange in the U.S., filed a lawsuit against the U.S. Securities and Exchange Commission on Monday, requesting the regulator to publicly respond to its July 2022 petition for clearer crypto regulation guidelines.
“The hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community,” Binance.US also said in a tweet on Wednesday.
Mythical’s line of games allow players to turn their characters or achievements into tradable non-fungible tokens without in-game cryptocurrencies, Linden explained.
In October 2022, the company established the Mythos Foundation to manage the Mythos blockchain gaming ecosystem and the Mythos token. Mythical uses the Mythos token as the utility token on its native blockchain and NFT marketplace, but clarifies that the foundation is independently operated and Mythical Games does not have its own cryptocurrency.
The foundation facilitates Mythos DAO (decentralized autonomous organization) to encourage game developers, gaming guilds and e-sports teams to participate in the Web3 ecosystem. Its members include global companies such as Animoca Brands, Ubisoft, Kakao Games and LINE.
See related article: Coinbase ups the ante with SEC, asking court to require crypto clarity from regulator
Web 3.0 generally refers to the construction of a decentralized internet typically built around blockchains, the underlying technology of cryptocurrencies. Examples include cryptocurrencies, non-fungible tokens and the metaverse.
Linden said in the group interview that he hoped to identify non-U.S. partners during his visit to South Korea, as Mythical eyes global expansion.
In South Korea, games with elements of blockchain technology are banned because of potential market speculation among players. But Mythical is tracking regulatory developments around the world, said Linden, declining to share details on its expansion in South Korea.
“It’s not just about releasing a game in Korea at this point,” Linden added, explaining that Mythical is seeking opportunities to bring “unique” intellectual property in South Korea and Japan to the West, with his team in discussion with K-pop groups for potential partnerships.
Mythical’s Asia focus remains on South Korea and Japan, but Linden says the company is bullish on Web3 growth in the entire Asia-Pacific. “I think it’s also moving the fastest in [putting] really concrete regulatory movements forward.”
Mythical Games, which was established in 2018, has around 1.5 million players with its open-world multiplayer Web3 game Blankos Block Party. Its new football game NFL Rivals is set to launch globally on 8 p.m. Eastern Time on April 26.
See related article: Japan’s Web3 pivot needs global mindset, flexibility to succeed, says incubator founder