Metaverse game CEO loses $2M in bad trades, promises to pay it back
The CEO of Ragnarok, a multiplayer metaverse RPG currently in alpha, admitted to losing almost $2 million of company money from trading during the most recent crypto crash. In a rare act of transparency, the CEO publicly disclosed the project's earnings and expenses, revealing a huge pay disparity between founder members and the rest of the staff.
The CEO of Ragnarok, who goes by Fanfaron, said on Substack that he made «mistakes by buying ETH (Ethereum) multiple times when [he] thought it was an advantageous investment for the project.
»Then to protect downside risk and with the plan to reinvest at a better time, I sold our position in ETH, multiple times. This led to approximately 1.827M in losses," Fanfaron said (thanks, web3isdoinggreat).
The company started with $1.75 million in seed funding and has made over $17.5 million from NFT sales and royalties. The game, which Fanfaron described as «similar to WoW but everything being digitally owned,» has suffered some delays, which were blamed on overexpansion resulting in missed deadlines.
«If I am being honest, running Ragnarok has made me aware of many personal skill gaps, and it is one of the reasons I am prioritizing expanding our team and bringing on domain experts to help lead us into the next phase of growth,» wrote Fanfaron. «Ultimately, I own our mistakes as the leader of Ragnarok, and I apologize to the community for the missteps and lack of communication thus far. I cannot promise that we won’t make mistakes going forward—we are all human, but I can promise stronger transparency and that we will always act in good faith for our community and this project.»
The post includes a breakdown of the earnings and expenses for Ragnarok, including $5.4 million in
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