Ember Sword Shuts Down After Raising Millions, Citing Funding Woes

Another day, another web3 game bites the dust. And this time it's Ember Sword, a once-promising web3 MMORPG by Bright Star Studios. The team announced the project's closure via a Discord post yesterday, marking a dramatic end to a crypto game that raised over millions of dollars from players. 

Despite the huge capital raised through land sales and investments, Ember Sword has joined the growing list of web3 games that never made it to full launch.

What Was Ember Sword?

Ember Sword was envisioned as a classless, free to play MMORPG set in the fantasy world of Thanabus. With four regions and a combat system based on equipped weapons rather than fixed classes, it offered a mix of PvE and PvP gameplay. The game was supposed to feature a player-driven economy and NFT-based land ownership, built on the Ethereum network.

Players could trade cosmetic items, own land plots, and take part in shaping the game world. At its peak, Ember Sword boasted a large, engaged community and received major backing from high-profile investors, including Twitch co-founder Kevin Lin and YouTuber Dr Disrespect.

How It All Fell Apart

In a Discord announcement above, the team explained that they were unable to secure the necessary funding to keep development alive. "We explored every possible way forward, but the current web3 and gaming market made it impossible," the statement read. "Our journey, and servers, go offline today."

The statement, filled with gratitude and regret, praised the passionate community and the development team. Yet, it couldn't mask the larger issue: the failure of another web3 game, despite the financial backing.

Millions Raised, But No Game Delivered

Ember Sword began development in 2018 and went through several major funding milestones. In 2020, Bright Star Studios secured $700,000 in pre-seed investment. In 2021, they launched a massive virtual land sale that received more than $203 million pledged from 35,000 applicants.

But players never saw a completed product. Closed beta tests in mid-2024 and an early access launch in December 2024 were met with lukewarm reception. Many players criticized the gameplay as underdeveloped and unengaging, far from the AAA ambitions that they had promised.

Community Backlash Grows

The shutdown has triggered widespread anger among fans who had financially backed the game. Several players reported losses in the thousands. Popular gaming YouTuber CAGYJAN tweeted, "I can confidently say this was a rug," citing personal losses of around $30,000.

Others on platforms like X and Discord echoed similar sentiments, labeling the project a "hard rug" or "grifter." With millions invested and nothing to show, many are now questioning the transparency of web3 gaming startups. 

A Troubled Development Timeline

The game's development was fraught with challenges. After starting with Unity, the team moved to a proprietary engine called Project SERIUS, delaying progress. While this shift was aimed at improving browser accessibility, it arguably hindered its momentum.

Though Ember Sword reached early access in late 2024, it was evident that the game lacked polish. Reviews called it "0 substance," and players voiced concerns over missing features, clunky mechanics, and poor balance.

A Trend of Web3 Game Shutdowns

Ember Sword is far from alone. 2025 has seen a string of blockchain game closures. Just this month, games like Nyan Heroes, Blast Royale, Rumble Kong League, and Tatsumeeko: Lumina Fates also ceased development. The first 3 projects raised over $22 million collectively and attracted much hype during the bull market.

In the case of Tatsumeeko, a $7.5 million-funded project backed by Binance Labs and Animoca Brands, the team cited project complexity and shifting market focus as reasons for ending development. But unlike Ember Sword, Tatsumeeko has promised to work on a smaller-scale project called Project: Wander.

What's Next for the Community?

For many players, Ember Sword's closure leaves a financial and emotional void. The Discord server will be closed to avoid scams, and no refund or compensation plan has been announced. This leaves both NFT and token holders with digital assets that are now essentially worthless.

The game had the team, the vision, and the capital, but perhaps not the market conditions or development execution to see it through.

As the space matures, transparency, sustainable development, and realistic roadmaps must take precedence over hype and tokenomics. For now, Ember Sword's downfall adds another name to the growing list of blockchain games that couldn't finish the race.