Before the surge of interest in artificial intelligence driven by advancements in generative AI, cryptocurrency captivated many investors. As some venture capital firms quickly pivoted between AI and crypto, observers criticized their opportunistic behavior. Simultaneously, a new wave of entrepreneurs emerged, passionately advocating for the integration of AI and crypto. Notably, Vitalik Buterin, a key founder of the Ethereum blockchain, recently shared an article discussing four potential applications of “AI + crypto,” generating excitement among his Twitter followers. However, the practical applications of these concepts still need to be validated on a larger scale.
One startup aiming to demonstrate that the fusion of AI and crypto is here to stay is Ultiverse, based in Singapore. Positioned as an “AI-powered” platform for developing and publishing crypto games, Ultiverse has garnered interest from reputable investors. It recently secured $4 million in strategic funding led by IDG Capital, a venture capital firm renowned for backing leading Chinese technology companies like Tencent, Baidu, and Xiaomi, as well as crypto innovators such as Coinbase and Circle.
Additional participants in this funding round include Animoca Brands, Polygon Ventures, MorningStar Ventures, Taiko, ZetaChain, Manta Network, DWF Venture, and Jacob KO. This influx of investment has propelled Ultiverse’s valuation to $150 million.
How is Ultiverse integrating AI into its crypto ecosystem? In an interview, co-founder Jimmy Liu—who previously led his family’s private equity firm—explained that AI is harnessed to “accelerate production and user adoption.” Instead of developing AI models from scratch, Ultiverse utilizes existing large language models like GPT-4, Llama, and Stable Diffusion to enhance in-game non-playable characters (NPCs). This approach ensures that players enjoy unique experiences based on their interactions with the NPCs, while also allowing players to create their own AI agents to represent them.
“This production process, in the past, could take days or even weeks, requiring multiple people to execute. However, with AI integration, we've significantly reduced both the time and cost needed to generate the same volume of content,” Liu shared.
Although integrating AI into game design may not be Ultiverse's only competitive edge—since other studios can also leverage LLMs—there are numerous examples of gaming companies utilizing generative AI for creating art assets, developing level designs, and constructing game models for their peers.
Additionally, the ongoing debate surrounding crypto games persists, with critics questioning whether these games generate real value for the industry by facilitating user ownership and liquidity of assets or if they primarily exist for profit, akin to gambling. The industry's reputation has suffered in light of “play-to-earn” games like Axie Infinity, which have drawn comparisons to pyramid schemes.
To date, Ultiverse has launched three games, including a mobile cricket game that boasts 200,000 unique active wallet addresses, predominantly from India and Pakistan, where cricket enjoys immense popularity. As of December, the startup has amassed 7.3 million registered users across all its titles, with an average of 830,000 monthly active participants.
By employing a popular crypto wallet feature called “account abstraction,” which simplifies the complexities typically associated with self-custodial wallets, the cricket game has successfully attracted non-crypto users who previously did not own wallets. “The experience is seamless until they reach the point of withdrawing their rewards and realize this isn't just a game,” Liu explained. “This strategy helps us engage and transition what we consider web2 gamers—who have never tried web3—into our ecosystem.”
“Ultiverse represents an AI-driven, all-in-one solution for web3 gaming production and publishing, ready to transform the industry,” stated an IDG Capital spokesperson enthusiastically. The firm is also an investor in other major crypto initiatives, including Ripple, ImToken, and KuCoin. “This investment illustrates our confidence in their capacity to lead and revolutionize the way games are both developed and experienced on a global scale.”
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