Web3 is Going Just Great

September 29, 2025

Futureverse announces restructuring two years after raising $54 million

In 2023, there was no shortage of buzzy press coverage for Futureverse, which promised to build a metaverse and gaming-focused blockchain. They partnered with Ready Player One author Ernest Cline to build the "Readyverse". They partnered with the estate of Muhammad Ali to build an "AI-powered" boxing game (with NFTs!) They partnered with Rebook to build a "virtual sneaker design experience", where customers could design sneakers to equip to their Fortnite or Roblox characters. That year, the company had raised $54 million in a Series A round led by 10T Holdings and Ripple Labs. They made even more money from token sales to retail investors.

As recently as this year, Futureverse was earning spots on "most innovative company" lists. In April, they announced they'd be acquiring Candy Digital, an NFT company created by Mike Novogratz, Gary Vaynerchuk, and others (which itself had raised a $100 million series A in 2021, and another funding round in 2023). "NFTs will be back in a big way one of these days", wrote Axios, covering the sale in April 2025.

But now, Futureverse has announced they've "made the difficult decision to begin a restructuring of the business". Focusing only on the AI portion of their business, and conspicuously omitting any mention of blockchains, NFTs, or metaverses, the company says they "recognize that adjustments are needed to ensure the long-term sustainability of our vision."

Futureverse locked comments on the post, likely to try to dodge angry community members who accused the company of stealing from them or rug-pulling.

"Futureverse Raises $54 Million From 10T, Ripple Labs for Metaverse Push", Decrypt [archive]
"The most innovative companies with between 51 and 200 employees for 2025", Fast Company [archive]
"Exclusive: Futureverse acquires NFT startup Candy Digital", Axios

December 2, 2024

Nike to shut down its RTFKT "virtual sneakers" project

Someone paid over $133,000 for this RTFKT NFT in April 2022 (attribution)

Nike will be shutting down its RTFKT "virtual collectibles" project at the end of January 2025, according to an announcement made in early December. Nike had acquired RTFKT in 2021 as "part of its move into the metaverse", banking on the idea that people would be excited to buy virtual sneakers and other NFT collectibles that their avatars could wear in the metaverse.

However, the "metaverse" trend failed to take off, and Nike is only the latest company to abandon its multi-million dollar investment in the space.

Tweet by RTFKT

September 9, 2024

State securities regulators settle with GS Partners over pyramid schemes including "tokenized skyscraper"

Rendering of a skyscraper in Dubai, with the Burj Khalifa in the background

Rendering of the supposed "G999 Tower" (attribution)

Five states have settled with the European crypto firm GS Partners over several crypto investment pyramid schemes. These included one in which the firm sold crypto "vouchers", each representing a single square inch of a 36-floor Dubai sksycraper, which they said would allow holders to earn passive income from rental leases. The group reportedly offered a 5% weekly guaranteed return. Other schemes involved selling metaverse land and a token purportedly backed by gold. GS Partners worked with various celebrity spokespeople, including eternal moth-to-the-flame of scammy crypto projects, Floyd Mayweather. The GS Partners firm shut down in the United States as of December 2023.

Terms of the settlement include 100% repayment of investments made by victims in the five states that settled: Texas, Alabama, Arizona, Arkansas, and Georgia.

GS Partners has also faced regulatory scrutiny in other US states, as well as in Canada, Australia, and South Africa.

"Five U.S. States Reach Settlement With GS Partners, Investors to Get Full Refunds", CoinDesk [archive]
"GSPartners collapses, GSPro reboot after fraud warnings", BehindMLM

March 16, 2024

Wilder World game suffers $1.8 million theft, blames contractor

(attribution)

Wilder World is a blockchain-based racing game that uses all the buzzwords: blockchains, artificial intelligence, and metaverse. On March 16, someone with access to the project deployer's private key upgraded legacy contracts and transfer the project's $WILD and $MEOW tokens to themselves. Altogether, the attacker profited 515 ETH (~$1.8 million), which they then laundered through the Tornado Cash cryptocurrency tumbler.

The project blamed the theft on a previous contractor who had the private key. They also explained that the attacker seemed to be a developer based on the fact that they had "specialized knowledge of ZERO's internal security systems".

"March' Major Private Key Compromises", CertiK [archive]

October 10, 2023

Fintoch scammers strike again with $1.6 million FinSoul scam

A metaverse gaming project called FinSoul promised users “sandbox worlds, multiplayer sports, leisure experiences, player socializing, MMORPG,” and other features. However, on October 10, the project team made off with $1.6 million, which they then tumbled through Tornado Cash.

The team behind the FinSoul project was reportedly the same as the group who pulled off the much larger $31 million Fintoch exit scam in May. They used similar strategies, including using paid actors to pose as their executive team, to push the FinSoul scam.

"Web3 game project allegedly hired actors to pose as executives in $1.6M exit scam", CoinTelegraph [archive]

August 8, 2023

Disney exits the metaverse

(attribution)

Disney has shut off the last light in its metaverse division, parting ways with "metaverse chief" Michael White. In February 2022, Disney's then-CEO described the metaverse as "the next great storytelling frontier". That sentiment appears to have been short-lived, because in March 2023, Disney cut its 50-person metaverse team, leaving only White.

"Disney's 'metaverse chief' departs shortly after division shutdown", Campaign Asia [archive]

July 17, 2023

Neopets shuts down its Neopets Metaverse project

An "Acara" Neopet with a plushie body, sad expression, and squid hat and scarf

Neopet #1315 (attribution)

After announcing a Neopets Metaverse project — complete with NFT collections and two different crypto tokens — in 2021, Neopets has announced they will be "transition[ing] away from the Neopets Metaverse game and redistribut[ing] those resources to the development of a game that we feel can better reflect our values and vision." The announcement came along with an announcement that the company had raised $4 million, and undergone a major change in leadership. They reassured their community that its new project, "World of Neopets", will not have any NFTs and "is NOT built on a crypto model".

The announcement referred to wanting to "design a game that's more in line with what the community has been asking for", a nod to the backlash from the Neopets community when the company decided to go web3. In September 2021, one of the most popular Neopets fan communities tweeted, "The Neopets community overwhelmingly rejects the new NFT cashgrab project. We're hard pressed finding someone outside of the NFT community that wants this."

Holders of Neopets NFTs seemed somewhat split on the announcement that the NFTs would remain tradable on secondary markets, but would not be incorporated into any game. Some described the project as a "rug", and were disappointed that the NFTs they'd purchased would never be useful in-game. "Once an NFT has no use, the price tends to tank", one person (accurately) remarked. Another commented that they'd always viewed the NFTs as little more than a collectible, and were satisfied with it never going beyond that.

"Neopets Metaverse Transition: A Message from The Neopets Team", Medium post
"Neopets Metaverse showcases web3's most unnecessary tendencies", Input
"Neopets will finally fix its games in $4 million overhaul", Mashable

April 17, 2023

Co-founders of company best known for Bella Hadid NFTs begin $77 million court battle against each other

3-D artwork of a humanoid robot shaped like a woman, all white with a red circle on the chest, wearing a bomber jacket with "Japan" on the arm. The robot has Giga Hadid's face, which is wearing a futuristic visor and earphones. The background is the Japanese flag.

A "Cy-B3lla" NFT (attribution)

Krzysztof Gagacki and Edmond Truong are co-founders of Rebase.gg, some sort of augmented reality app where people go hunting for NFTs. They're best known for helping to create a "Cy-B3lla" NFT collection with model Bella Hadid, which launched in mid-2022. Speaking about skepticism of celebrity NFT projects to Vogue in June 2022, Hadid said, "Where that skepticism comes from is the people who just want to have a money grab. To me, it’s so much bigger than that. I want it to be a collective. It’s not a one-stop shop—this is a real passion."

Although the project promised to provide ongoing access to Bella Hadid and various other perks, the project website has already dropped offline, the Twitter account hasn't posted since October 2022, and the Discord is a ghost town save for occasional questions about whether the project is dead. Hadid made $1.5 million for her involvement in the project.

Things at Rebase seem to have devolved, because now Gagacki has filed suit against Truong, alleging that he "has gone rogue". The suit alleges that Truong tried to oust Gagacki from the company, stole around $2 million from a shared wallet, and damaged Gagacki's reputation. In particular, Gagacki is concerned that Truong is attempting to launch the project on the Arbitrum network without Gagacki's involvement, and that tokens minted there "could reach many times over the Rebase app's last round valuation of $150,000,000" without being shared with Gagacki.

Altogether, Gagacki is claiming damages of no less than $77 million, representing the stolen funds, the value of the app, and the profits from the possible Arbitrum deal.

December 11, 2022

Decentraland adds that one feature we've all been waiting for: landlords

A square made up of blue, grey, and red pixels representing a land map

This Decentraland plot just sold for $19,000 (attribution)

If the idea of dropping thousands of dollars to "own" a plot of "land" in the Decentraland metaverse doesn't do it for you, have I got news for you: Decentraland has just introduced official support to allow its users to become a part of the rentier class. Exciting!

In case you were wondering, I checked, and yes. Someone has already come up with the concept of metaverse mortgages.

Personally, I'm excited to see other horrific parts of the system of homeownership get recreated virtually. Metaverse homeowners associations. Metaverse building permit red tape. Metaverse NIMBYs. Metaverse property liens. Metaverse neighborhood watch.

"Decentraland will now let you become a virtual landlord", The Block

October 7, 2022

CoinDesk reports that Decentraland has just 38 daily active users

Decentraland (attribution)

According to CoinDesk, the metaverse platform Decentraland is entertaining roughly 38 users a day these days. This isn't much for its "valuation" of $1.3 billion — although CoinDesk seems to be estimating this on "market cap". Its competitor, the Sandbox (also "valued" at around $1.3 billion), is doing a bit better — with a whopping 522 daily active users.

Not only that, the most users Decentraland has ever had in one day is only 675; The Sandbox had 4,503 at one point.

"It's Lonely in the Metaverse: Decentraland’s 38 Daily Active Users in a $1.3B Ecosystem", CoinDesk

No JavaScript? That's cool too! Check out the Web 1.0 version of the site to see more entries.