Why is Proof of Play shutting down despite raising US$33 million?

Proof of Play said it could not build a scalable and sustainable Web3 gaming business despite raising US$33 million in 2023.

What does Proof of Play’s closure mean for Pirate Nation (CRYPTO:PIRATE)?

Pirate Nation (CRYPTO:PIRATE) will continue receiving support from the independent Pirate Nation Foundation after Proof of Play closes.

Pirate Nation (CRYPTO:PIRATE) fell almost 14% to about US$0.00112 following the shutdown announcement.

Pirate Nation (CRYPTO:PIRATE) code and smart contracts were publicly released, while artwork received a CC0 licence for unrestricted reuse.

Proof of Play sold Shiba Story Go to an undisclosed third party, which will continue operating the mobile game independently.

Image for illustrative purposes only. Not a real photo.

Written by Heidi Cuthbert Published Aug 5, 2026, 7:40 AM

Proof of Play will cease operations after saying its Web3 gaming model failed to become a sustainable business.
Pirate Nation (CRYPTO:PIRATE) fell almost 14% after the announcement, trading near US$0.00112.
The Pirate Nation Foundation will continue supporting PIRATE, while the studio released game code and artwork publicly.

Proof of Play will shut down after failing to build a scalable Web3 gaming business despite raising US$33 million in 2023.

The funding round was led by a16z and Greenoaks, while Pirate Nation became the studio’s main blockchain gaming project.

The company did not disclose its closure date, remaining finances or how many employees will lose their jobs.

Pirate Nation (CRYPTO:PIRATE) fell almost 14% following the announcement, trading near US$0.00112 with an US$803,000 market value.

Proof of Play released Pirate Nation’s code, smart contracts and artwork publicly, while its independent foundation will continue supporting PIRATE.

Mobile game Shiba Story Go was sold to an unnamed third party and will continue operating independently.