Loot Labs, a company led by former Cool Cats leaders, has successfully obtained $1.5 million in pre-seed funding for the launch of Boxed.gg, a web3 loot box platform. BITKRAFT Ventures led the funding round, with participation from Polygon Ventures, Mechanism Capital, Lofty Ventures Syndicate, and video game streamer Hammoudi “Yassuo” Abdalrhman. The secured funds will be allocated towards product development, marketing efforts for the Boxed platform, and establishing partnerships to enhance community engagement with existing assets.
According to Milan Harris, Founder & CEO of Loot Labs, digital collectibles serve as the primary method of monetization in online video games, providing individuals with a means to express themselves through collectible items. The aim of Loot Labs is to expand the loot box model by offering an enjoyable and fair experience in acquiring digital collectibles. The company adopts a player-centric approach by providing mystery boxes that cater to specific user preferences, while introducing high levels of transparency and accountability.
Loot boxes are virtual treasure chests commonly found in video games, offering players an opportunity to obtain rare or desirable in-game items such as skins, weapons, and mods. These enhancements can be acquired through gameplay or purchased using real or in-game currency.
In 2020, gamers spent $15.26 billion on in-game loot boxes, which accounted for 8.5% of total gaming revenue. With this in mind, Boxed leverages the popular gaming experience and utilizes NFTs (non-fungible tokens) and existing digital items to create themed third-party loot boxes, ranging from Rare NFT Art to collectible Avatars used on platforms like Reddit.
The primary mission of Loot Labs is to enable NFT purchasers to acquire digital collectibles in a fair, enjoyable, and transparent manner. Boxed places a strong emphasis on fairness by disclosing the exact odds of unboxing each NFT, dynamically adjusting pricing based on real-time market data, and utilizing provably fair random selection methods.
Carlos Pereira, a Partner at BITKRAFT Ventures, expressed an immediate resonance with Loot Labs’ business model. Being gamers and NFT enthusiasts themselves, they understand the appeal of loot boxes and the anticipation of discovering rare items. Pereira praised the Loot Labs team for their experience in operating a similar business in trading cards and their comprehensive understanding of NFTs. He believes that Loot Labs is well-positioned to replicate their success in the digital collectibles market by leveraging the unique advantages of digital assets to create an efficient, scalable, and transparent business for consumers.
