FTX, a cryptocurrency exchange, has chosen to launch a new gaming division.
FTX Gaming plans to provide a cryptocurrency-as-a-service platform. This will aid gaming firms in launching and introducing their tokens, as well as providing support for non-fungible tokens.
The gaming division is fostering a convergence between the crypto and gaming industries with its new introduction. This will secure the development of these industries as well as their expansion.
According to an FTX spokesman, the company is launching FTX Gaming. This is because they see games as an intriguing use case for cryptocurrency. More than 2 billion gamers around the world have played with and acquired digital objects, which they can now possess.
The coming together of the crypto and gaming sectors could give gamers more control over the products they earn while gaming through digital tokens and NFTs. A remote team of software developers with experience coding in the Unity game engine has been hired by FTX’s unit.
FTX has tried to expand as the crypto market in Asia gets more competitive. The company’s CEO, Sam Bankman-Fried, has stated that securing licenses in several countries is a major goal.
Gaming Industry Is Increasing
In November 2021, FTX, in partnership with Solana Ventures and Lightspeed Venture Partners, announced a $100 million GameFi ecosystem fund.
Games represent an intriguing use case for crypto, as highlighted by FTX. This enthusiasm has been mirrored in the rush of investments into the gaming business. Major IT companies have poured money into the burgeoning play-to-earn (P2E) gaming industry.
According to a survey by DappRadar, there were 398 active blockchain games in January 2022. It is up 92 percent over the previous year.
FTX’s Latest Development
FTX’s most recent decision has been criticized, despite a greater trend in favor of the gaming industry. Gamers, fans, and even developers have become increasingly critical of the play-to-earn paradigm used by various platforms. The play-to-earn strategy allows players to earn money as they play.
Those that have expressed dissatisfaction with the idea have argued that making money through gaming can be risky. They added that it can lead to more problems.
P2E has a bad reputation for being a fraud and unhealthy. This is because using such a paradigm, games might become extremely vulnerable to a variety of scams.
However, Amy Wu, the leader of FTX’s $2 billion venture capital fund, has taken a neutral stance on the P2E gaming business. Wu believes that it is too early to speculate on the implications of play-to-earn games until enough studios introduce games with digital assets.