Ember Sword shuts down after raising millions, joins a growing list of 2025 web3 game collapses

Ember Sword, once hailed as a AAA Web3 contender, has officially shut down.

Bright Star Studios announced the closure of the Ethereum-based MMORPG on May 22d via its official website, citing failed funding efforts amid a volatile GameFi market.

The announcement reads: “Our journey, and servers, go offline today.”

Launched in 2018, Ember Sword envisioned a decentralised, player-driven MMORPG set in the fantasy world of Thanabus. 

Featuring PvE/PvP combat and NFT-based land ownership, it drew major investor support, including controversial streamer Dr Disrespect, Twitch co-founder Kevin Lin, and Rob Pardo, ex-Blizzard lead designer of World of Warcraft.

In 2021, the project raised over $203m in pledged funds from 35,000 participants in a virtual land sale. 

Earlier, it secured $700,000 in pre-seed funding. However, despite years of development and closed beta releases in 2024, players found the experience underwhelming and incomplete.

After starting in Unity, the team migrated to a proprietary engine, Project SERIUS, to boost browser access.  The switch, however, led to delays and declining momentum. Despite attempts to pivot, Bright Star Studios admitted the current Web3 climate made continued development ‘impossible’.

This shutdown has elicited reactions from the crypto gaming community.

Players reacted with anger and disappointment. Gaming YouTuber CAGYJAN tweeted: “I can confidently say this was a rug,” reporting personal losses of around $30,000. 

Another user on X called it a ‘soft rug’, lamenting broader GameFi trust issues.

Ember Sword joins a growing list of 2025 GameFi shutdowns, including Nyan Heroes, Blast Royale, Rumble Kong League, and Tatsumeeko. 

Despite optimism in recent DappRadar reports, the web3 gaming market sustainability is still a challenge.