Gaming with cryptocurrencies has formed a separate sector that differs from traditional gaming. Its popularity is growing for all the right reasons. It offers a high level of transparency that allows them to own their assets and make purchases within the crypto gaming world. Meanwhile, traditional gaming usually doesn’t offer such ownership rights to gamers, and the assets owned by players tend to hold little value outside of the game.
Even though traditional gaming remains delightful, it limits owners’ ability to hold their assets. With great potential, you may not be accessible to everyone due to issues such as knowledge and high costs. The accessibility problem can be solved with a massive migration to the blockchain and NFTs. This sounds quite possible considering the modern realities in the world. Let’s take a more precise look at the whole situation.
Current Prospects of Crypto Esports
In 2022, the esports industry was at the risk due to the collapse of FTX, a popular cryptocurrency exchange. FTX announced its bankruptcy after introducing a report to the public. The collapse of FTX made the cryptocurrency industry jump up and down, while the esports industry had to face the crossfire. How is it possible?
The whole situation had an impact on the brand partnership revenue, especially from high-risk industries such as crypto and gambling. FTX was incredibly ambitious in the esports sector, with a bunch of partnerships with top companies. FTX itself was a sponsor of numerous companies and events such as Riot Games’ League of Legends Championship Series. Now the prospects of FTX look quite shady.
The bond between FTX and the esports industry has already begun to disappear. FURIA stopped its partnership with the crypto company, while TSM expressed its intention to suspend its collaboration with FTX as well. Despite numerous setbacks, TSM is still present in the cryptocurrency sector. The esports platforms such as cover gg still plan to announce an alternative crypto collaboration on the previous connections between esports enthusiasts and the crypto environment to minimize the negative effects of the FTX collapse. Generally, the collapse of FTX is just beginning of a difficult period for companies.
A considerable difference in career opportunities between developing nations and developed countries due to different societal and structural aspects. At the same time, the advent of the web and its application has revealed new avenues for people to make profits for a living. They have a digital connection and relevant software. What’s good is that developed countries have low engagement rates, but people are open to trying out crypto gaming capabilities.
The negative press surrounding cryptocurrencies in the US and UK has encouraged lower readings, especially compared to other countries. In addition, financial regulations in developed nations are moving in large steps. It is important to consider the public factor that many countries have to struggle with.
Opportunities for Crypto Esports
Over the last decade, crypto gaming has managed to create a lot of opportunities for developing countries. This contributed to the economic downturn as people got more space for income with little or no barriers to entry. In 2023, it will be nice to see how crypto gaming keeps growing, changing and developing. The unstable economic situation will surely have an absolute impact on the crypto trends in general and in the esports sector specifically.
When it comes to the gambling industry and cryptocurrencies, the risks are always there. This makes the esports industry reorganize its operations. As a result, it tries to avoid shutdowns like the one that happened to FTX. It will be important for esports companies to encourage both their revenue streams and brand partnerships to perceive such controversies in a better way. The esports industry should take the key from the traditional sports industry’s response to potential controversies. Consumer brands are the streamline of sports because they are stable, low risk, and generally inclined to controversies.