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NFT, is Blockchain Bubble Real?


Jul 28, 2022

The game industry is in turmoil over the news of Wemade, the pioneer of blockchain games, turning into a deficit in the second quarter. For this reason, some in the game industry are cautiously raising the theory of blockchain bubbles. In the meantime, voices are also gaining strength that blockchain games that link game performance and new technologies are needed to secure future new growth engines in the game market.

According to related industries on the 28th, Wemade announced its second quarter results through a conference call on the 27th. Based on the consolidated financial statements applied by IFRS (K-IFRS), Wemade’s second quarter sales amounted to 109 billion won, operating losses of 33.3 billion won, and net losses of 31.6 billion won. In other words, it turned into a deficit for the first time in a year and a half since the fourth quarter of 2020.

The deficit conversion was attributed to an increase in operating costs, including increased marketing costs and labor costs for the new mobile game “Mir M” released in the first half of the year. Labor costs rose 26% from 44.367 billion won in the first quarter to 56.2 billion won in the second quarter. Advertising advertising expenses increased 13% from 13.453 billion won in the first quarter to 24.457 billion won.

However, some expressed anxiety about Wemade’s deficit transition, which is called the pioneer of blockchain games. Wemade has made investments related to blockchain technology by signing Onboarding the WeMix platform with various game companies. In response, the industry is pointing out that “excessive investment and expansion have affected the deficit conversion.” Another reason is that the results of investment are invisible. In addition, the fact that the rankings of domestic blockchain games in the global market are less powerful than in the early days is also considered a source of anxiety

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