Xternity Raises $4.5M To Help Developers Transition To Web3

Web3 gaming development startup Xternity has secured the financial backing it needs to get its platform off the ground after closing on a $4.5 million round of funding. The investment, which comes alongside the beta launch of its platform, was led by investors including NFX, Jibe Ventures, Flori Ventures, Secret Chords and Vgames. 

Xternity has created a comprehensive platform to support Web3 games developers and the new breed of so-called “play-to-earn” video games that make use of cryptocurrencies and non-fungible tokens in order to reward players for participating. In particular, it’s focused on bringing Web3 capabilities to Web2 games. It does this with a Multi Chain API that supports blockchains including Ethereum, Binance, Polygon, Immutable X, Solana and Celo, an embedded and customizable crypto wallet, a highly scalable NFT platform, plus a Web3 customer relationship management tool. 

To make life even easier, Xternity’s toolset is “no-code”, meaning that they can be integrated into Web3 games with minimal coding. In this way, Xternity’s platform can be thought of as a “meta layer”, the company explained, adding essential capabilities for Web3 games like crypto, NFTs, wallets and user analytics. It saves developers plenty of work, as they would otherwise have to code these capabilities by themselves. 

Xternity says its platform can help developers to boost engagement with players, especially those among Gen Z, where play-to-earn gaming has proven to be popular. 

According to Xternity co-founder and Chief Executive Sagi Maman, the startup is fully focused on supporting game creators by empowering their players with digital ownership. 

“Xternity continuously strives to define and build a long-term solution with valuable utility for the user,” Maman said. “We believe that mass adoption of Web3 is possible only with simple, safe, and scalable technology built upon a sustainable engagement economy.”   

Co-founder and Chief Technology Officer Shahar Asher said the key advantage of Xternity’s platform is that developers can work with multiple blockchains simultaneously and at scale, while enjoying a unified coding experience. “They can also add NFT assets and game economy layers while focusing on their core mission,” he added. 

Xternity’s funding is just the latest example of investor’s enthusiasm for Web3 gaming platforms. This year, Nerdystar announced a $6 million fundraise to build Web3 games for Line Games’ Web2 brands. Other examples include FreshCut, founded by former Twitch executives, which raised $15 million in May, and C2X, which bagged $25 million in funding last March. 

NFX General Partner Gigi Levi Weiss told The Block that he’s backing Xternity because it provides the scalability and monetization capabilities that Web3 games desperately need. “By understanding game developers' need for scalable infrastructures and sustainable economic models, they were able to create a seamless solution that safely onboards web2 games to web3, and the current framework is just the first milestone,” he said. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice