Medieval Empires faces significant external threats that could hinder its sustainability and growth in the competitive Web3 gaming landscape. These threats include intense competition from other Web3 games, regulatory uncertainties, cryptocurrency market volatility, and potential player fatigue with play-to-earn models. This report will explore these threats in detail, assessing their potential impact on Medieval Empires and evaluating the studio's preparedness to mitigate these risks.

• Medieval Empires operates in a highly competitive Web3 gaming market, facing pressure from established and emerging games with similar play-to-earn mechanics, which could erode its market share and player base.
• Regulatory changes, particularly around NFTs and cryptocurrency, pose a significant risk to the game's tokenomics and play-to-earn model, potentially forcing costly adaptations or compliance measures.
• Cryptocurrency market volatility could destabilize Medieval Empires' in-game economy, affecting player earnings and overall engagement, especially if token values fluctuate dramatically.
• Player fatigue with traditional play-to-earn models may diminish Medieval Empires' appeal, particularly if it fails to innovate or offer unique gameplay experiences compared to competitors.
• The studio's reliance on private investors and limited transparency regarding token distribution and funding could hinder its ability to scale and adapt to external challenges.