Before collapsing, FTX invested in and made headway into the cryptocurrency gaming market, and it was a strong advocate for the industry. So, what happens next? Gaming and cryptocurrencies do not always have an easy relationship.
Gaming companies and some players have rejected everything that has to do with blockchain technology and digital assets. According to them, environmental concerns have not yet been completely taken into account, and trying to turn games into speculative investment options destroys the fun.
While going to experiment with in-game NFTs, others have been pretty hopeful. Additionally, a relatively small but vocal group of crypto supporters is adamant about seeing blockchain-based games become a reality. Well, FTX was one of this vocal and devoted minority.
FTX announced its intention to launch its own gaming division relatively early this year. The platform will allow businesses to introduce their own NFTs and tokens. To increase its presence in the market, FTX has also collaborated closely with a few startups in the cryptocurrency gaming space. But many are now speculating about how those small businesses’ futures might pan out in the wake of the FTX meltdown.
Despite FTX’s failure, blockchain technology is still reliable and the basis for other cutting-edge initiatives that are changing both the gaming industry and our financial system. The technology was unflappable; it offered services and permitted the sending and receiving of assets by all users. The centralized exchange FTX’s collapse may not interest those who entered the cryptocurrency space via the gaming or NFT channels.
What is the purpose? Unless they had tokens retained in FTX, which is highly improbable given that the majority of blockchain games require internal markets and staking alternatives for their gamers, which necessitates the tokens being kept in a blockchain wallet. Players may have already internalized the roughest Web3 lesson: don’t use your keys or your crypto.
More on FTX: What Is FTX?
FTX was a crypto derivatives exchange founded in 2019 by Sam Bankman-Fried and Gary Wang. The exchange provided traders with access to futures, spot markets, leverage tokens, and options. In mid-2020, FTX acquired a portfolio of cryptocurrency companies, including Alameda Research (a quantitative trading firm) and Blockfolio (a portfolio tracking app).
In just two years, FTX became one of the most successful crypto exchanges in the world, trading over $20 billion daily and processing more than $30 million in transaction fees. However, the company got into some legal issues with US regulators late last year. Following a lack of liquidity and improper money management, FTX.US crashed. This was followed by a significant amount of withdrawals.