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MechaFightClub NFT Game has been paused due to US ‘Regulatory Limbo’

MechaFightClub NFT Game has been paused due to US 'Regulatory Limbo'

Irreverent Labs, the creators of MechaFightClub, an NFT game on Solana, have announced an indefinite halt in its development. The decision was made due to the current regulatory challenges surrounding the future of cryptocurrency in the United States, according to the game’s makers.

In the words of Rahul Sood, the CEO and co-founder of Irreverent Labs, the company has decided to halt development due to the lack of a clear path forward to launch the economy from the United States.

Relocating the operation to different jurisdictions would necessitate the senior team to temporarily leave the United States.

A new video game called MechaFightClub (MFC) is in the works, which will feature mechanical roosters battling it out in a high-tech arena called the “Cocktagon.” The game will utilize advanced artificial intelligence technology to enhance the experience of cock-fighting enthusiasts. According to Sood, in a statement to Decrypt, the decision to shut down Irreverent was made by the company itself. However, Sood also mentioned that the MFC brand will not be sold as it holds significant value to the company. He stated that the brand is deeply ingrained in the company’s identity.

According to the developer, the game has now entered the “alpha” phase, indicating that it is fully functional and includes all planned features, but may still require additional content and refinement. Sood thinks that MechFightClub might make a comeback in the future, albeit in a different form. However, the team is yet to finalize any decisions regarding the same.

On Thursday night, the company announced the shutdown of MechaFightClub and offered to repurchase any mechabot NFTs for 18 SOL each, which is approximately $365, from May 15 to June 29.

Before the announcement, NFTs were being traded for approximately 7 SOL, which is less than half of their current value, on the NFT marketplace Magic Eden. The MFC non-fungible tokens (NFTs) have been removed from the Magic Eden marketplace for sale.

In the latest development regarding the SEC’s regulatory stance on cryptocurrencies, Irreverent Labs has penned an open letter claiming that their game is currently stuck in a “regulatory limbo.” The United States Securities and Exchange Commission (SEC) has been increasingly active in taking enforcement actions against crypto startups and platforms in the country over the past few months. The SEC has accused these entities of violating securities laws on a wide scale.

Based on a letter by Irreverent Labs, the regulatory and operational landscape of blockchain in the United States has undergone significant changes over the past two years.

Irreverent Labs, a blockchain company based in the United States thinks the absence of clear guidelines is posing a challenge to the operations of blockchain companies in the country. Amidst the current state of regulatory uncertainty, the creation of an in-game economy has become a cause for concern due to potential legal implications.

During this week’s episode of Irreverent’s Hundred Year Podcast, NFT entrepreneur Sood made a statement regarding SEC Chair Gary Gensler, just days before the news of MFC’s shutdown. Sood claimed that Gensler’s appointment was owed to U.S. Senator Elizabeth Warren and suggested that both Gensler and Warren are aiming to eliminate cryptocurrency due to their belief that it is fraudulent.

With the news of MFC’s shutdown, Sood has decided to shift Irreverent Labs’ focus towards artificial intelligence. In a recent direct message to Decrypt, Sood revealed that Irreverent has achieved a noteworthy advancement in its AI model. As Sood said the model is now capable of generating concise video content from still images. Later this year, the studio intends to release it with a new brand identity.

MFC’s hope was fervent but short-lived. The firm had announced a substantial $40 million funding round just a year ago, led by venture capital firm Andreessen Horowitz (a16z). The funding round saw investments from Solana Ventures, CAA founder Michael Ovitz, Bollywood actress Sonam Kapoor, Infinity Ventures founder Brian Lu, and other investors.

General Partner Arianna Simpson of the VC firm initially found the game to be “weird.” However, she decided to invest in it due to her belief in the team’s competence and dedication. Additionally, Simpson noted that the team possessed a good sense of humor and had a thriving Discord server community.

As the community comes to a close, individuals are bidding farewell to their robotic chickens and seeking entertainment elsewhere.

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