Video Game Platform Loot Lab Raises $1.5 Million In Seed Funding

Video game Loot Box, a Seattle-based company that uses non-fungible tokens (NFTs) has announced the completion of a $1.5 million funding round. Following the launch, the company launched a fresh platform for digital collectibles, which brought the “loot box” model to the NFT space from video games.

Loot Labs’ new project Boxed gives users all-virtual mystery boxes that are filled with multiple digital collectibles, varying from scarce NFT arts to avatars that users can use on well-known websites like Reddit.

This is just like the random loot boxes found in common video games such as Valve’s Counter-Strike: Global Offensive or World of Tanks. It’s a contentious mechanic that is always in comparison with a slot machine, which enables players to receive several in-game objects like cosmetics or new weapons after paying certain amounts.

The Participants Include Mechanism Capital And Polygon Ventures

According to Carlos Pereira, partner at BITKRAFT, Loot Labs has been very consistent with its plans and strategies within the NFT space. Loot Lab’s business unit directly resonated with the company because it has been familiar with Loot Lab’s model for a long time. And as stakeholders within the NFT space, both companies are excited about the new project and waiting for what the future holds in the partnership.

The pre-seed round had several participants who understand the economic impact of the project within the NFT space.  The round was headed by Denver’s BITKRAFT Ventures. It also drew several investors such as  Lofty Ventures Syndicate, Mechanism Capital, and Polygon Ventures.  An expert gaming content creator on the 100 Thieves network, Hammoudi Abdairhman, is also in partnership with Boxed as an angel investor.

Loot Boxes Still Get More Revenue Despite Criticisms

Loot boxes still generate a remarkable amount of video game revenue despite being controversial. In a study conducted by Loot Labs in 2020, it was revealed that $15.3 billion were spent by players on loot boxes. In essence, Loot Labs desire to bring that “beloved gaming experience,” to the set, according to its official press release.

Boxes made a plan to unmask its drops. The value on every loot box will be updated dynamically in actual time according to recent market data, and the chances that a box will drop an exact NFT will be on the site.

According to Loot Labs, people love expressing themselves by collecting things. As a result, the company is looking to expand and improve the Loot Box system. The main goal is to provide the most exciting experiences when buying digital collectibles.

Loot Labs was founded by Harris together with Michael Ryan and Matthew Genova. They formerly teamed up on the collectible card game service TCG Royale.