FTX Announces Launch of a Gaming Unit
FTX Steps Into the Gaming World
The initial offering for the new gaming division by FTX will be a ‘crypto-as-a-service’ platform through which game producers can launch tokens and support in-game NFTs. According to a report by Bloomberg on Monday, the game would likely be operated through the American brand of exchange - FTX U.S. A spokesperson representing the firm said:
“We are launching FTX Gaming because we see games as an exciting use case for crypto. There are 2 billion+ gamers in the world who have played with and collected digital items, and can now also own them.”
The global gaming industry is anticipated to top a value of $300 billion this year, and it is linked to digital items and currencies that can be collected, used, or traded in-game. FTX intends to harness this symbiotic relationship by developing a platform that allows game producers to launch their tokens.
The company claims that by November of this year, they will be able to invest $100 million with partners to incorporate Solana blockchain within a video game. Howbeit, the recent few months have observed the network that was once called ‘Ethereum killer’ beset by performance and outage issues.
While game developers and crypto firms view this union as very beneficial, games have remained skeptical of crypto assets, particularly NFTs. The addition of FTX’s new gaming-focused staff reflects the company’s ongoing efforts to integrate blockchain-based solutions into the gaming field, as GameStop’s NFT marketplace illustrated.
On one hand, game creators and merchants perceive crypto tokens and NFT products as viable income sources. On the other hand, gamers have expressed broad doubt about the necessity of blockchain technology.
Several game publishing firms have been forced to terminate prospective NFT initiatives in recent months due to fan outrage, which has mostly stemmed from hostility to new kinds of expensive downloadable content that are seen to give little further value to gamers.
All this while, play-to-earn (P2E) platforms have been garnering a growing fan base, particularly in the Philippines, where gamers can earn tokens by partaking. President of FTX U.S, Brett Harrison remarked that blockchain technology expands on existing gaming features such as avatars, skins, rewards helping gamers to trade, own, and invest.
“The backlash is primarily out of concern that the focus on cryptocurrency will divert the efforts of game studios away from making the best game possible for the players.”
The crypto space, as observed, consists of scams and frauds, the proof-of-work mining also has a negative impact on the environment. The counter-argument to this statement is that millions of game servers and power-hungry graphic cards do the same as well.
Late last year, Ubisoft Entertainment unveiled a platform that allows players to buy and sell in-game NFTs, however, hardcore players have opposed the idea. This year, GameStop also disclosed its plans to build an NFT marketplace and a $100 million fund for game developers.