Foresight Ventures: Redefining Xterio with AI – The Netflix Moment for Gaming

Author: Alice, Investment Partner of Foresight Ventures

As the festive season approaches, I finally had the chance to complete Black Myth: Wukong on my PS5. The immersive experience was truly breathtaking and left me reflecting on the future direction of Web3 GameFi.

Compared to Web2 games, Web3 games hold inherent advantages in their technical architecture: blockchain-based asset ownership, player-driven economies, and open ecosystems. However, it’s undeniable that Web3 games still lag behind top-tier Web2 games in gameplay depth and immersion. The rise of AI Agents, however, is quietly reshaping this landscape. AI introduces dynamic interactivity, personalized experiences, and highly immersive game worlds, positioning it as a crucial factor in attracting players to the Web3 gaming space.

a. The Rise of AI Agents in Gaming

The AI Meme wave has driven significant technological advancements while drawing widespread attention. Let’s revisit some key milestones:

Key AI Agent Milestones

1. Early 2024: Stanford University researchers, led by Fei-Fei Li, published "AI Agents: A Frontier Survey on Multimodal Interactions". The paper explored autonomous AI decision-making in multi-environmental datasets, laying the theoretical foundation for AI Agent development.
2. July 2024: Terminal of Truths (ToT) emerged, capturing attention with its humor and creativity. The AI model interacted with users via social media and secured funding from A16Z founder Marc Andreessen. This event sparked debates around AI Agent autonomy and governance, marking a pivotal moment in the AI narrative.

Notable Web3 AI Projects

1. Luna (AI K-pop Idol)
   • A virtual idol on Virtuals Protocol with over 6 million TikTok followers.
   • Real-time interaction with fans, reshaping traditional fan engagement dynamics.
   • Can facilitate social media transactions, redefining AI's role in digital economies.
2. AI16Z (AI Investment Fund)
   • AI-driven investment decisions using big data and market trend predictions.
   • Operates as a DAO, allowing token holders to influence investment strategies.
3. AIXBT (AI Crypto Market Analyst)
   • Specializes in real-time crypto market insights.
   • Communicates analysis through social media and integrates with Eliza frameworks for AI-agent deployment.
4. Zerebro (AI Artist)
   • Generates music, memes, and NFTs, blurring boundaries between human and AI creativity.
   • Open-source ZerePy Python framework enables creators to deploy AI tools easily.

The synergy between AI and GameFi could be the turning point for Web3 games to surpass Web2 gaming experiences. AI Agents have the potential to revolutionize game development, create lifelike NPCs, and generate personalized game assets and immersive environments.

Core Advantages of AI Agents in Web3 Gaming:

• Enhanced Asset Liquidity: AI Agents can autonomously conduct on-chain transactions, enhancing token liquidity and game economy vibrancy.
• Dynamic Content Creation: AI tailors unique game experiences for every player, eliminating content redundancy.
• Optimized Player Interaction: AI-driven NPCs adapt to player styles, offering dynamic and engaging interactions.
• Cross-Platform Integration: AI excels at seamless cross-platform trading across various blockchain networks.
• Decentralized AI Models: Blockchain ensures transparency and fairness in AI Agent operations, reducing bias.

b. Xterio: Pioneering AI-Powered GameFi

Xterio leads the integration of AI and blockchain technologies in GameFi, offering an interconnected ecosystem that spans game publishing, virtual asset trading, and value-added services.

1. World-Class Team and Strong Backing

Founded by industry veterans from FunPlus, Electronic Arts, Zynga, Activision Blizzard, and more, Xterio benefits from over 15 years of collective experience in AAA game development.

• FunPlus Legacy: The global SLG giant has dominated overseas gaming markets, consistently ranking among the top mobile game developers.
• Michael (CEO): Former CSO of FunPlus and ex-COO of NetEase Games, Michael is an industry leader with a vision to redefine gaming through Web3.

2. Dual Rollup Architecture: Ethereum + BNB Chain

Xterio operates on a dual Rollup structure, leveraging both Ethereum and BNB Chain.

• Ethereum Integration: Partners with AltLayer and EigenLayer for a Restaked Rollup, securing the network via re-staked ETH.
• BNB Chain Collaboration: Gas token utility via BNB and adoption of OP Stack for scalability and EigenDA for data availability.

3. Flagship Games on Xterio Ecosystem

1. Age of Dino: AAA flagship strategy mobile game with over 10 million users.
   
2.  Palio: An AI-driven game featuring an Emotion Engine that fosters deep player-NPC interactions.
   
3. Overworld: An anime-styled ARPG game offering open-world exploration, PvPvE combat, crafting, and social mechanics.

c. Xterio's AI Integration Strategy

1. AI Tools Built for Gaming

• AI Agents: Highly adaptive AI companions capable of cross-game interactions and real-time blockchain monitoring.
• Emotion-Intelligent Chat Engine: Developed in collaboration with Reka.ai , enhancing emotional interaction between NPCs and players.
• Graphical Model Engine: Cost-efficient tools for stunning game visuals, showcased in PalioAI's Gen0 NFT series.

2. Cross-Platform Game Publishing

Xterio seamlessly supports game deployment across PC, mobile, and web platforms. Key features include:

• Launchpad for streamlined game releases.
• NFT marketplace for blockchain-secured asset trading.
• Cross-chain capabilities across Ethereum, BNB, and Optimism.

3. AI-Driven Gameplay Innovation

Xterio’s Befriend AI event introduced emotional AI interactions, daily missions, and dynamic responses, offering players a glimpse into the future of AI-powered gaming.

d. Community Growth and Achievements

• Over 8 million users and 100 million transactions completed.
• Ranked 3rd in active wallets (UAW) among Layer 2 gaming projects.
• Over 1 million ETH staked in the ecosystem.
• Raised 5,000+ ETH via NFT sales on the Xterio Launchpad.

e. Our Investment Thesis

For Foresight, we believe Xterio is more than just a Web3 gaming platform—it’s a foundational infrastructure provider for AI-integrated GameFi. Our investment thesis is as follows:

• AI-Driven Transformation: Leading the charge in AI-powered interactive and immersive gaming.
• Strong Backing: Supported by FunPlus and led by industry veteran Michael.
• Diverse Ecosystem: Flagship games like Age of Dino, Palio, and Overworld mitigate single-game dependency risks.
• Thriving Community: Millions of active users and robust transaction volumes validate Xterio's scalability and appeal.

For Foresight Ventures, Xterio represents the future of gaming: **AI-powered, user-centric, and community-driven.**Xterio is creating the Netflix moment for gaming, reshaping the industry and leading Web3 GameFi into a new era.

About Foresight Ventures

Foresight Ventures is the first and only crypto VC bridging East and West. With a research-driven approach and offices in the US and Singapore, we are a powerhouse in crypto investment and incubation. Our premier media network includes The Block , Foresight News , BlockTempo , and Coinness . We aggressively invest in the most daring innovations. We are dedicated to partnering with visionary projects and top teams to help them succeed, reshaping the future of digital finance and beyond.

For more information, visit: Website | Twitter | LinkedIn | Discord | Linktree

For media requests, please contact [email protected] .

This post is commissioned by Foresight Ventures and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.