In Brief
- CEDEN Network has ceased all operations, including its web3 game MEGAWEAPON.
- Financial struggles and a failure to secure necessary funding prompted the shutdown.
- No compensation or future plans have been discussed for the players and token holders affected by the abrupt closure.
CEDEN Network, a company involved in web3 games and decentralized services, announced the immediate shutdown of all its operations. This closure encompasses its game MEGAWEAPON and all related services. The decision was communicated through a solitary X post now closed for comments, alongside the disabling of their main communication platform, Discord.
Financial Struggles Lead to Closure
The team at CEDEN had been working towards creating a decentralized infrastructure with their Edge Node Network, which they managed to launch in an alpha phase. However, they struggled to transition from the alpha version to full production due to a lack of necessary funding. The financial challenges were further compounded by increasing player acquisition costs, poor monetization, and low retention rates within the web3 gaming sector, which also impacted their revenue streams negatively.
Game Operation and Revenue Issues
MEGAWEAPON’s operation mirrored the troubles faced by CEDEN, with management stating that the game did not generate sufficient revenue or player engagement to continue. Despite having introduced new gameplay changes and multiple seasons with large token prize pools, the game saw stagnant player retention and revenue remained below operational costs.
Recent Game Updates and Seasons
Despite the financial troubles, MEGAWEAPON had recently introduced a significant update which launched the game’s Season 3, featuring a 10 million $WEAPON token prize pool. Subsequent seasons in December brought additional updates and prize pools. However, these efforts did not translate into sustainable growth or sufficient financial return. Following the shutdown, there has been no communication about the distribution of rewards or the future of assets held by players.
Lack of Player Compensation
The abrupt shutdown left many players out of pocket, with no guidance on compensation for their investments or any potential refunds. Purchased DEGEN credits and tournament passes, meant to enhance player scores and standings, are now rendered useless with the game’s closure and the defunct pay-to-compete system.
