‘Neopets’ Cancels NFT Game After Raising Money From Polygon, Avalanche

Neopets Meta CEO, Dominic Law, had previously promoted the concept of “play-and-earn” Web3 gaming and expressed interest in developing an NFT game based on the popular Neopets franchise. However, the development of the game, Neopets Metaverse, has now been abruptly canceled without a clear explanation.

During the alpha stage of development, the Neopets Metaverse team had already sold over 9,000 Solana NFTs across multiple collections. Additionally, they had raised millions of dollars in funding from backers including Polygon Ventures and Avalanche’s ecosystem fund.

In a blog post, the Neopets Team, referred to as TNT, announced the shutdown of the Neopets Metaverse and their pivot to a non-crypto mobile game called World of Neopets. The decision was made in order to design a game that aligns better with the desires of the community.

Neopets is now under new leadership and independent for the first time in 18 years. Viacom, the previous owner of Neopets, sold it to Jumpstart in 2005, which was later acquired by Japanese gaming firm NetDragon. With this “management buyout,” the newly united TNT now has full control over the decision-making and brand strategy of Neopets.

The new entity overseeing Neopets is called World of Neopia, Inc. They have promised fans monthly updates, AMAs, and a brand ambassador program. Furthermore, TNT plans to update the Neopets homepage and make their old Flash games playable again using an emulator.

Despite the cancellation of the NFT game, Neopets assured its commitment to the Web3 community. They plan to continue operating a Discord server for NFT holders and offer perks to NFT owners in the form of digital in-game currency and items, as well as potential physical merchandise and access to real-life events.

In response to speculations of community backlash, a Neopets representative emphasized the importance of listening to the needs and wants of their fans. The decision to pivot away from NFTs was made in the best interest of Neopets overall.

Prior to the cancellation, Neopets had been exploring NFT integrations since 2018. However, their previous Ethereum NFT experimentation resulted in only 1,800 NFTs sold and a limited financial return.

In January, Neopets successfully raised $4 million in funding from various venture capital firms, including Polygon Ventures and Avalanche’s Blizzard Ecosystem Fund. Despite the shift away from NFTs, the company’s backers remain supportive of Neopets’ vision and believe in their ability to build a brighter future for the franchise.

While the specific reasons behind the cancellation of the NFT game are unclear, Neopets is now focused on developing a new mobile game that reflects the desires of their community.