Binance Criticizes NFT Game Despite Generating $115M for its Mint

SkyArk Chronicles just experienced a major nonfungible token mint. However, Binance Labs claims the game developer provided a false account of its investment.

SkyArk Chronicles is an anime-style fantasy game that held a large nonfungible token (NFT) mint with enthusiastic collectors promising Ethereum worth $115M for an opportunity to claim a character asset. However, Binance Labs claims that its investment in the studio was distorted in the countdown to the mint.

SkyArk Studio Reveals Active Input from Binance Labs

In early January, SkyArk Studio revealed that Binance Labs, the venture capital arm of the crypto exchange, had steered its $15M funding round that came before the substantial nonfungible token mint. However, Binance Labs noted that its investment in the studio returned in 2021.

 In a long X (formerly Twitter) post, the company claimed that SkyArk Studio contravened its investment contract by utilizing the Binance Labs branding without earlier approval. Besides, it had not managed the latest investment round.

Rather, Binance Labs noted that its investment in the studio was part of its 2021 incubation program. In case the project had informed them and embraced the facts, they would have been entirely okay with it.

The attached screenshots indicated part of the investment contract wording as well as Telegram screenshots requesting SkyArk Studio to take down the deceptive framing concerning its role in the latest $15M round. According to Binance Labs, public clarification was necessary since people began asking questions.

Further, the VC company established that SkyArk ‘only erased the tweet without explicating the truths.’ Simply put, despite SkyArk removing the tweet, the deceptive announcement’s message keeps lingering.

SkyArk Expressed Regret and Apologized for Miscommunication

A January 29 tweet by SkyArk Studio sought to apologize for the miscommunication and acknowledge Binance Labs’s clarification. It also revealed the commitment to making SkyArk a success and doing all it takes to attain its vision.

Kelvin Chua, the studio’s co-founder, tweeted a reply to Binance Labs. The tweet recollected lessons from the incubation program of the studio while also expressing regret for the mistake.

 Kevin wrote that SkyArk achieved an astounding record nonfungible token auction sale made possible through backing from investors and communities, which included the initial check from Binance Labs. They would not want to cause inconveniences to their investors and followers.

Afterward, the studio posted a Discord post screenshot explaining the disconnect. The team noted that SkyArk has carried out only a Web3 fundraising round that began in the third quarter of 2021 and amounted to $15M.

Further, the team said that Binance is still the biggest investor, and a ‘misunderstanding’ existed between the SkyArk team and Binance Labs. SkyArk Studio and Binance Labs did not respond despite a request for comment.

SkyArk Studios Initiate Refund for NFT

SkyArk Chronicles tells the tale of a fantasy hero, Satoshi Nakamoto, which also refers to the pseudonymous name of Bitcoin’s actual-world developer. However, this game does not seem all wound up in Bitcoin terminology or lore.

The game’s website shows that in the past, Satoshi Nakamoto came into a miserable world that had nothing. Satoshi developed the SkyArkVerse, a secure world for all bright life. However, where light exists, darkness will also be there.

Monsters came from the deep and distressed the SkyLands. Due to the attack, Satoshi should pick the heroes to battle with for peace to return to the SkyArkVerse.

On the afternoon of January 29, SkyArk Studio started the refund process for the nonfungible token (NFT) mint, allowing traders to recoup their Ethereum in case they failed to secure any of the 8,000 minting slots. The tweet showed that users have 60 days to claim a refund.

SkyArk Chronicles is developed partly on Binance’s BNB Chain, despite the studio claiming that the most recent nonfungible tokens batch is minted on Ethereum. 

Editorial credit: ANTON ZUBCHEVSKYI / Shutterstock.com