Adam Fitch: Are cryptocurrency sponsors bad for esports? – Dexerto

Adam Fitch: Are cryptocurrency sponsors bad for esports? – Dexerto

While esports is an industry itself, one some claim is worth over $1 billion, it’s also a hotbed of trends. From athletes and musicians rushing to invest in teams to even fast-food companies launching channels to accommodate gamers, it’s trendy to be involved with an industry people believe will be the next big thing. The new trend involves cryptocurrency.

To be fair to cryptocurrency, that whole industry has undergone a big boom itself — even far surpassing the financial status of esports, despite all of the venture capital and celebrity money that have been pumped into it over the past few years.

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The emergence of NFTs, a technology that assigns a unique ledger to online assets like images and videos, seemed to take over the entirety of the internet earlier in 2021. Many believe that this tech will be behind the ‘ownership era’ of the web, and some are already banking on it helping to evolve gaming itself.

As crypto blew up and companies specializing in the technology received unbelievable valuations and investment, esports organizations and tournament organizers have been among the beneficiaries. The headline deal to demonstrate this trend, which has only strengthened since, was a ten-year naming sponsorship agreement between TSM and exchange platform FTX worth $210m.

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