Ragnarok is one of the largest metaverse gaming projects in the web 3.0 & crypto space. The metaverse game, alongside its non-fungible token (NFT) characters, was launched in April this year. At the time of launch, the project raised $1.75 million in a seed funding round and an additional $17.5 million from the sale of NFTs and royalties.
Despite the strong start of this project, it has also been caught up in the wave of financial woes spreading across the cryptocurrency market. The CEO of Ragnarok, Fanfaron, recently released a blog post addressing the project’s finances.
Ragnarok CEO admits to financial woes
Fanfaron published a blog post on August 26. The executive published a blog post detailing the project’s finances. He started by clarifying Ragnarok’s status as a startup and not as a decentralized autonomous organization (DAO).
In the blog post, Fanfaron also said that the initial plan was never to publicly reveal the project’s finances. Therefore, the company has never gone public with its financial statements, and it was not willing to share the full accounting of the company.
The admission in the blog post, which was quite long, also talked about the other reasons why the company was unwilling to publish its financial reports. The CEO also added that he had lost more than $1 million after buying Ether during the bear market.
He said he had bought ETH multiple times, thinking it was a significant advantage for the project. However, at the time, he was investing in Ether to protect against the downside risk of the project, and he was planning to reinvest in the project at an ideal time. Fanfaron also admitted that he later sold his position in Ether, a sale that also happened multiple times.
The team paid hefty salaries
Fanfaron also admitted that one of the things that were eating up the project’s funds was the massive salaries paid to employees. It revealed that it paid its team members huge salaries of $5.4 million. The company also spent an additional $1.5 million to buy out a co-founder of the project.
He also said that Ragnarok was “s scrappy startup.” He also acknowledged that he pays himself $50,000, equivalent to $600,000 annually. Before this, he was paid an original salary of $1.2 million annually. He also promised to pay back the losses he had made trading Ether.
The Ragnarok game is still operating and has already made some positive developments that make it one of the best play to earn games. An alpha version of the game was released towards the end of July after several delays.
At the time, Fanfaron said that the company’s vision was to create a robust project. However, he said that it took time to create such a project. The alpha version of the game aims to create a multiplayer art world where the characters can walk around, talk and interact. It also provides missions that players can solve for rewards.
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