Promoted article (contains affiliate links)
The integration of crypto and blockchain into the world of esports offers a wide variety of opportunities to innovators, users and established players alike. Not everyone is convinced just yet, but here’s a look at how cryptocurrencies and NFTs are getting involved with esports.
Esports and Crypto’s New Synergy
The cryptocurrency industry has achieved more mainstream traction in 2021 post-pandemic than it has ever done in history. And one way cryptocurrencies and digital currencies are fast gaining acceptance is by leveraging the electronic sports (esports) industry.
Major names like Crypto.com and Bybit are not only making their way into physical sports, they’re also establishing long-term partnerships with big names in the esports industry, such as Twitch.
Just recently, on November 16th, Crypto.com secured naming rights to LA Lakers’ home ground, overseeing the playing grounds’ name change to ‘Crypto.com Arena’. Two weeks prior, the same Crypto.com inched a deal with esport tournament series Twitch Rivals.
The owner and organiser of Twitch Rivals, Twitch, remains one of the most important names in the esport industry. The video game live streaming service commands more than 140 million monthly active users. Considering the massive audience esports boasts of, and also its young demographics, it’s not difficult to see the appeal the industry holds for many crypto outfits.
The Crypto Industry Is Capitalizing on Esports
Many reputable cryptocurrency exchanges are fast identifying the esports space as one of its most crucial growth drivers to tap into. Since video game leagues started seeking to monetize the competitive nature of video games, the industry has grown significantly. Both industries are now linking up more and more.
Recent reports indicate that blockchain and esports entrepreneurs are trying to converge their markets. The convergence of the two industries was catalyzed by 2020’s global pandemic and has intensified ever since. Last November, esports personality Susie Kim announced the launch of her own cryptocurrency, called SUSIE, marking one of the first entries of crypto into esports.
Her crypto project follows an existing group of 30 gamers, creators, and influencers that have issued their coins on the Rally platform, which is backed by Andreessen Horowitz and other venture capital firms. Thanks to Kim, soon after, Twitch received a boost in popularity in South Korea.
Not only is the blockchain industry forming mergers and partnerships with figures in the esports sector, ambitious entrepreneurs are also creating competitive gaming platforms based on blockchain technology.
For example, using the decentralized Dawn Protocol, FirstBlood Technologies has operated an online competitive gaming platform since 2016. The company currently uses its token but has recently announced that it will integrate MakerDAO’s crypto-backed stable coin.
A series of events taking place over the next few months will also offer DAI to esports competitors using the platform. The fact that it links esports and decentralized finance, which has, until now, been a niche in the crypto sector, some find intriguing.
There is also the blockchain version of Twitch, which has received moderate traction. Last year, Justin Sun’s Tron, which acquired BitTorrent in 2019, also acquired DLive.tv, an esports streaming service built on blockchain.
More Esport and Crypto Partnerships
Asides from Crypto.com, there are other exchanges and key crypto figures with piquing interests in electronic sports. One such figure is Bybit, which has recently secured esports contracts with Astralis and Alliance, expanding its reach within the video gaming industry.
According to Ben Zhou, co-founder and CEO of Bybit, esports is a long-term proposition for the crypto company. Like many crypto outfits with interests in the gaming industry, visibility is a key driving factor. Bybit exchange expects to feature its logo on gaming jerseys and the company will stream its content on twitch.tv as part of efforts to expand player engagement, ramp up carbon neutrality initiatives, and promote financial literacy.
According to Mr. Zhou, esports and cryptocurrency have a special connection thanks to their high level of competitiveness and “rapid adoption curves”. As per the partnership, Alliance and Astralis will send talent to the upcoming World Series of Trading, an annual competition hosted by Bybit to compete in gamified cryptocurrency trading, with a prize pool of about $7.5 million.
Not only has Bybit struck an admirable alliance with Alliance and Astralis, the exchange also entered an exclusive partnership with Navi, an esports organisation known for its Counter-Strike, FIFA and Rainbow Six Siege activities, as well as other games. With the help of multiple partnerships, crypto platforms like Bybit have expanded their presence in the gaming and esports industry.
Besides Bybit, FTX exchange is also one of the biggest crypto names to leverage the gaming industry. In June, FTX inked a $210 million deal with esports giant TSM for naming rights, and would follow that up with a seven-year deal with the League Championship Series LCS.
Two of the biggest deals however in recent times would be Crypto.com’s partnership with Fnatic and its ensuing agreement with Twitch’s largest tournament, Twitch Rivals. In the Asia-Pacific region, Crypto.com will serve as an official partner of Twitch Rivals, as it targets traction in the pacific coast . The deal with the live streaming service comes after the crypto platform struck a $15 million partnership with one of the biggest esports organisations – Fnatic.
Crypto.com’s agreements often include category exclusivity, branded segments, and media placements. For example, the exchange’s advertising will also be featured on over 250 Twitch Rival broadcasts around the world during the tournament.
Other organisations are also getting involved. UK side Endpoint CeX have become the first UK esports organisation to launch a Socios.com fan token, in partnership with blockchain provider Chiliz.
The esports industry is estimated to be at about $1 billion and some expect it to reach $6 billion over the next six years. It’s a defining industry in the world’s tech evolution, and with the world’s focus gradually shifting to metaverses and web 3.0, it is no surprise that crypto platforms are trying to get on board as soon as possible.
Are NFTs the future of gaming?
Metaverses are largely considered to be the future of the internet, and the closest games to a metaverse we have in 2021 are arguably titles like Fortnite. Fortnite has hosted virtual concerts catering to millions of audiences in real-time. Platforms like Realm and Star Atlas are trying to replicate this feat on the blockchain while adding NFTs into the mix. If gamers must earn while they play, then being rewarded with NFTs and sellable crypto tokens could be one option for them.
NFTs (non-fungible tokens) are making a comeback since they allow blockchain innovators to create unique and one-of-a-kind digital assets. As a result, gamers can collect in-game assets that are securely stored on a blockchain.
Popular YouTuber and gamer PewDiePie, who has more than 107 million subscribers on YouTube, recently supported the blockchain-based augmented reality game Wallem. In Wallem, NFTs are used for skins and other items in the game, while Ethereum-based tokens reward players.
Many ‘Wallems’ are popping up on the market, and the gap between crypto and gaming continues to thin by the minute. In the future, we all might just be gamers and crypto traders, living, earning, and playing, but some in the industry will need still further convincing.
Promoted article
Dom is an award-winning writer and finalist of the Esports Journalist of the Year 2023 award. He graduated from Bournemouth University with a 2:1 degree in Multi-Media Journalism in 2007.
As a long-time gamer having first picked up the NES controller in the late ’80s, he has written for a range of publications including GamesTM, Nintendo Official Magazine, industry publication MCV and others. He worked as head of content for the British Esports Federation up until February 2021, when he stepped back to work full-time on Esports News UK and offer esports consultancy and freelance services. Note: Dom still produces the British Esports newsletter on a freelance basis, so our coverage of British Esports is always kept simple – usually just covering the occasional press release – because of this conflict of interest.
