Spellborne, developed by Mon Studios, faces several external threats that could hinder its success in the competitive Web3 gaming space. These threats include competition from other Web3 games, regulatory changes, cryptocurrency market volatility, player fatigue, and technological advancements. This report will cover:

• The competitive landscape of Web3 gaming and how it impacts Spellborne's market position.
• The potential impact of regulatory changes on Spellborne's tokenomics and play-to-earn mechanics.
• The risks posed by cryptocurrency market volatility and its effect on player earnings and the game's economy.
• The challenge of player fatigue with play-to-earn models and its implications for Spellborne's retention.
• The potential threats from technological advancements, including AI-generated content and blockchain scalability issues.