- ChronoForge, a Web3 game studio, will shut down all services by Dec. 30 due to financial challenges.
- The closure reflects broader difficulties in the Web3 gaming sector, with many projects struggling amid funding shortages and declining user interest.
- Minted Loot Studios developed ChronoForge, with support from the Rift Foundation, which raised over $3 million through token sales.
- Despite market troubles, Web3 gaming remains an active sector, accounting for almost 28% of decentralized application activity in October 2025.
ChronoForge, a multiplayer action RPG studio focused on onchain asset ownership, announced it will cease all operations by December 30. The decision follows months of operating with a drastically reduced workforce after significant funding shortfalls forced the founders to finance development personally since July. The studio reduced its staff by 80% amid these financial constraints.
The team highlighted ongoing challenges in a public statement, noting they continued delivering patches and new features despite having no marketing budget, revenue below sustainment levels, the loss of codevelopers, and widespread negative sentiment toward Web3 gaming. Abhishek Pawa, founder of the cryptocurrency consulting firm AP Collective, described the shutdown as a reflection of the “difficulty the Web3 gaming market has been this cycle” as cited in his social media post.
Developed by Minted Loot Studios, ChronoForge’s ecosystem was overseen by the Rift Foundation. The foundation supported the project through the sale of the RIFT token, raising over $3 million. The game first launched its NFT collection and began community-building efforts in 2022.
The Web3 gaming sector, also known as Gamefi (games integrated with decentralized finance elements and blockchain technology), has faced a sharp downturn throughout 2025. According to a report by the blockchain gaming platform ChainPlay, 93% of Web3 game projects were considered defunct by late 2024. GameFi token prices fell 95% from their peak, and many venture capital firms experienced losses on their investments.
Despite these challenges, data from NFTs-sold-as-web3-moves-beyond-jpegs”>DappRadar shows that Web3 gaming remains highly active. In October, the sector accounted for almost 28% of decentralized application activity, representing the highest number of unique active wallets within Web3.
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