PANews reported on April 6th that according to Blockworks, the crypto shooting game 'Shrapnel' developer Peg Machine is facing serious financial difficulties. So far, the company has spent nearly $86.9 million in operating funds, with 2024 revenues reaching $21.7 million, but the high operating costs of approximately $33 million have prevented it from becoming profitable, resulting in a net loss of $11.4 million.

Sources say Peg Machine burns through $2 million to $3.5 million monthly, currently experiencing cash exhaustion and holding substantial unpaid debts, owing external suppliers millions of dollars. The company's planned financing round originally scheduled for early 2025 has not materialized. Previously, the company completed a $20 million Series A funding round in October 2023, led by Polychain Capital.

Moreover, the company's staff has dramatically reduced from nearly 100 at its peak to just over ten, with very few currently actively involved in 'Shrapnel' development. To extend cash flow, the company has implemented at least three rounds of layoffs and requested high-paid employees to voluntarily take approximately 20% pay cuts. The Seattle-based office was closed at the end of March.

Despite this, the company continues to claim it is "in the strongest state ever" and plans to globally launch 'Shrapnel' by the end of 2025. However, multiple sources close to Peg Machine doubt the game's successful launch, stating the project remains unfinished and funds have been exhausted.

Additionally, according to People's Network-Jinbao News, Lingscape·People's Game Laboratory held talks with the 'Shrapnel' main creative team, reaching preliminary cooperation intentions on digital asset minting, compliant circulation, and market operations in the Chinese market.