Web3 games shuttered, Axie Infinity founder warns more will ‘die’: Web3 Gamer

CoinTelegraph

by Ciaran Lyons

January 31, 2026

AI-Generated Deep Dive Summary

The founder of Axie Infinity, Jeff “JiHoz” Zirlin, has issued a cautionary statement about the Web3 gaming industry, warning that many projects are likely to fail in 2026. He pointed out that numerous crypto gaming studios are struggling due to short funding runways and cash shortages, with over one-third of developers citing financial challenges as their biggest hurdle. Zirlin emphasized that even teams on established chains like Ronin are not immune to these issues, urging the industry to address its problems before it’s too late. The Web3 gaming sector has already seen several high-profile closures in 2025, including games like Ember Sword on Ethereum and Nyan Heroes on Solana. Zirlin acknowledged that Axie Infinity itself had been too cautious in 2025 but vowed to take bigger risks in 2026 to reignite the excitement of crypto gaming’s peak year. Meanwhile, Yield Guild Games co-founder Gabby Dizon echoed Zirlin’s sentiment, stating that game development is inherently difficult and that closures are a common part of the process. In other Web3 gaming news, NBA legend Scottie Pippen is set to launch Don’t Drop The Ball, a Bitcoin-themed basketball game. Inspired by Satoshi Nakamoto, the game features subtle references to Bitcoin culture, including graffiti and

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Originally published on CoinTelegraph on 1/31/2026