Phat Loop Studios, the corporate below fireplace final week for abandoning its Kickstarter and crypto-funded MMORPG sport Untamed Isles, is now denying accusations that they misplaced their backers’ funds investing in crypto.

The corporate got here below fireplace final week after asserting a “hiatus” of their Pokemon-like open-world online game, with a few of the group accusing the builders of spending sport improvement funds to wager on the crypto markets.

In a press release on Wednesday, the builders behind the undertaking, which raised over $525,000 United States {dollars}, or $841,000 New Zealand {dollars}, on Kickstarter, insisted that each one funds raised “have been spent by the studio creating the sport.”

The corporate said that the explanation for the hiatus is because of “the corporate exhausting its accessible funds” after “a number of buyers” pulled out just lately “on account of issues about each the financial market together with the crypto market.”

According to the preliminary announcement in regards to the hiatus, the undertaking had been gearing towards an October launch. owever, Grant said that the event of the undertaking had been placed on pause as the corporate was unable to “financially sustain with the calls for.”

Grant said that the primary motive for this was as a result of “financial panorama” altering for cryptocurrency, making it arduous to proceed pursuing the undertaking that employed “greater than 70 workers” to work “relentlessly for greater than two years” to construct the undertaking.

“The crypto market crash meant that buyers that have been lined up earlier this yr pulled out” who was essential to “make it by way of to our runway to launch,” stated Grant. 

The sport was initially designed to launch with nonfungible token (NFT) implementation, however the plans for this have been later dropped outdoors of an elective exterior market.

This angered many who questioned the legitimacy of utilizing the crypto market crashing as an excuse for the undertaking failing if it was primarily based on “sport first, crypto second.” 

It’s unclear how a lot the undertaking really deliberate to combine cryptocurrency into the undertaking in any respect, nevertheless, Grant said that “till the crypto state of affairs is resolved — and we’re assured it will likely be at some stage ” then we now have to hibernate improvement on this undertaking.”