Venture Capitalists Inject $12M into CryptoKitties Project

Most people who have kept a close eye on cryptocurrencies will remember the CryptoKitties project. Although it doesn’t seem to serve any real purpose, the project has been wildly successful. So much, even, that it has now received US$12 million in funding from VC companies which see merit in this particular concept. More cats will be unleashed on a blockchain near you, by the look of things.

CryptoKitties Gets VC Funding

Even though a lot of money was pledged to CryptoKitties in the past, it seems the best is yet to come. Whereas people expected this project to fade away into obscurity over time, things are only just beginning. Whether or not that is a good thing remains to be seen, even though most people will always welcome more cats in their lives. Since these cats aren’t even physical, there isn’t much to dislike about the concept.

What is rather surprising is that VC firms have invested money in CryptoKitties. More specifically, the companies investing include Andreessen Horowitz and Union Square Ventures. Some people may recall those names, as the firms have invested in various other crypto-related ventures such as exchanges and other service providers. A fair few angel investors, as well as Digital Currency Group and Hex Capital, are also on board with these blockchain-based tradable cats.

As one would expect, this round of funding has raised a lot of questions. It seems there was no shortage of money when CryptoKitties initially launched, as the influx of new transactions to buy these new “assets” effectively brought the Ethereum network to its knees. While it was not the first – or the last – time this happened, it indicated people were smitten by these adorable virtual cats. Since every type is unique and there is an option to breed entirely new species, the hype was more than warranted.

Even WikiLeaks got on board with CryptoKitties, which further helped legitimize this unusual project. Months later, the company is still sitting on US$12 million in VC funding. Although the team has not specified exactly what it plans to do with the money, it seems they will keep building their project and focus on marketing.

While all of this is good news for the CryptoKitties team, it remains to be seen if they can really bring more value to blockchain ecosystems. As of right now, most projects are intent on creating their own type of value out of thin air in the hopes of attracting VC investment. So far, it seems quite a few projects have been successful in this regard, although their actual real-world value remains in question.

Whether or not CryptoKitties can bring positive change to the world remains to be determined. For now, there isn’t much of a point to these digital cats. It does show how the concept of ownership is changing thanks to blockchain technology. Ownership is a very peculiar topic when it comes to virtual assets, and projects like these can be quite educational.