Chronoforge To Shut Down Amid Funding Collapse And Web3 Gaming Turmoil

ChronoForge’s shutdown highlights mounting financial strain across Web3 gaming as shrinking budgets and dismal market sentiment take their toll.

ChronoForge, a Web3 game studio developing a multiplayer action RPG centered on onchain asset ownership, is shutting down after months of operating with a drastically reduced team, a closure that underscores the severe financial pressures facing the Web3 gaming sector during the current market downturn.

On Wednesday, the studio announced it will cease all services by Dec. 30, citing “many headwinds,” including a funding shortfall that forced the founders to finance development out of pocket since July and reduce staff by 80%.

In a statement posted to social media, the team said it had continued operating under intense financial strain, pushing out patches and new features “despite no marketing budget, below sustainment revenue, loss of codevelopers and terrible Web3 gaming sentiment.”

Abhishek Pawa, founder of the cryptocurrency consulting company AP Collective, said the closure “reflects how difficult the Web3 gaming market has been this cycle.”

ChronoForge was developed by Minted Loot Studios. Its affiliated entity, Rift Foundation, oversees the game’s token and ecosystem. The foundation raised more than $3 million through the sale of the RIFT token to support development.

The project became active in 2022, when it launched its first NFT collection and began early community-building efforts.

Related: VC Roundup: Big money, few deals as crypto venture funding dries up

Web3 gaming, often referred to as GameFi, has faced weak funding and declining user interest through much of 2025.

By late last year, 93% of Web3 game projects were considered defunct, according to a report by ChainPlay, a blockchain gaming platform. At the time, GameFi token prices had dropped 95% from their all-time high.

Source: CoinTelegraph