- Gunzilla Games launched its GUNZ gaming network on Avalanche, but its GUN token saw significant price decline after launch.
- Logan Paul’s lawsuit against YouTuber Coffeezilla over CryptoZoo NFT game allegations will continue after a judge denied the motion to dismiss.
- Crypto game Hytopia announced a $5,000 prize “vibe coding” competition for creators to build AI-assisted mini-games.
The crypto gaming sector saw significant developments this week, with Gunzilla Games launching its GUNZ network on Avalanche amid token price struggles, Logan Paul’s lawsuit against a YouTube investigator moving forward, and Hytopia announcing a new AI-assisted game development competition.
Gunzilla Games launched its GUNZ gaming network on the Avalanche L1 blockchain on Monday, introducing its GUN token to the market. According to Decrypt, the token’s value dropped 24% within hours of launch and continued declining throughout the week. Market participants criticized an apparent last-minute change to tokenomics that removed an unlock for early investors. While the blockchain has reached mainnet status, the company’s battle royale game Off the Grid remains on testnet, meaning in-game items can only be traded for testnet tokens without real-world value.
Legal Battle Continues Over CryptoZoo
A U.S. judge denied YouTube investigator Coffeezilla’s (Stephen Findeisen) request to dismiss Logan Paul’s defamation lawsuit regarding the failed CryptoZoo NFT game. The judge determined that Findeisen’s use of the word "scam" in his videos exposing the unreleased game met the definition of defamation, with his role as a crypto investigator being another key factor. Coffeezilla’s legal team had filed for dismissal in February, arguing the statements weren’t capable of defaming Paul.
Game Development Competition and Industry Updates
Hytopia, a Minecraft-inspired crypto voxelverse game, announced a competition offering $5,000 in prizes for creators who build web-based mini-games using their development kit and AI assistance. The "vibe coding" competition allows participants to create games through conversational AI instead of traditional coding methods, with judging to take place over a week following the 14-day contest.
Other notable industry developments include Shrapnel becoming the first licensed Web3 game on China‘s RWA Trusted Copyright Chain, though Blockworks reports that maker Neon Machine faces financial difficulties. Meanwhile, crypto game Infected is shifting from Base to Solana over "demand" issues, and Solana idle RPG DeFi Dungeons launched on Wednesday.
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