Pixelverse, a cyberpunk-themed gaming ecosystem and entertainment studio, has secured $5.5 million in funding to expand its web3 gaming ecosystem. The funding round, led by Delphi Ventures, Merit Circle, and Mechanism Capital, comes amid a period of record growth for Pixelverse, with over 15 million registered users and more than 5 million daily active users within its first month.

The company is pioneering a new trend in Web3 gaming with its Tap-to-Earn model, which rewards users for regular engagement with web3 games and mini-apps. More than 10 million battles are fought daily in Pixelverse’s Telegram mini app, PixelTap.

Despite the optimistic outlook, the volatile nature of the crypto market and the regulatory uncertainties surrounding it cast a shadow over the future of web3 gaming. The recent funding will undoubtedly aid Pixelverse in expanding its ecosystem, but the question remains whether it can sustain its rapid growth in the face of potential regulatory hurdles and market fluctuations.

The web3 gaming industry is still in its nascent stage, and while Pixelverse's growth is impressive, it's important to approach with caution. The company's success hinges on its ability to navigate the complex regulatory landscape and adapt to the ever-changing crypto market.