Eldarune faces significant external threats in the competitive Web3 gaming space, ranging from market competition to regulatory uncertainties. The company must navigate these challenges to ensure its sustainability and growth.

• Eldarune's repetitive gameplay and lack of innovation pose a risk of player fatigue, potentially reducing engagement and retention.
• Regulatory changes in the Web3 space could disrupt Eldarune's tokenomics model and play-to-earn mechanics, creating economic instability.
• Volatility in cryptocurrency markets may affect player earnings, making Eldarune less attractive compared to competitors with more stable economies.
• Network congestion and high gas fees on Eldarune's chosen blockchains could deter players, especially when compared to more scalable alternatives.
• Security vulnerabilities, such as smart contract exploits, could undermine player trust and retention, particularly if other games offer stronger safeguards.
• Negative publicity surrounding NFTs or environmental concerns could harm Eldarune's reputation within broader gaming communities.
• The emergence of AI-generated content in gaming could reduce the value proposition of Eldarune's assets, making them less unique to players.