In an attempt to diversify its digital assets, the FTX exchange has revealed the development of a gaming division. The said gaming division will function as a crypto-as-a-service network.
The new unit will target game publishers and developers, urging them to use crypto assets and nonfungible tokens (NFTs). As per a Feb. 21 Bloomberg article, the exchange’s American branch, FTX.US will run this division.
According to an FTX representative, the company is developing FTX Gaming. This is because they consider games an intriguing application case for cryptocurrency. The spokesperson went on to say that there are over 2 billion gamers worldwide who have interacted with and accumulated digital assets. Those gamers may now own them.
The Gaming Industry
Investors anticipatetThe worldwide gaming industry to be worth $300 billion in 2022. Furthermore, it is linked to gatherable, useable, and exchangeable digital assets and cryptocurrencies in-game. FTX (FTT) intends to capitalize on this symbiotic relationship by developing a network. That network enables game developers to create their own tokens.
In November, the company announced that it would invest $100 million with partners. This investment is for the incorporation its Solana blockchain into video games. However, the platform once labelled an “Ethereum killer” has been beset by performance and breakdown difficulties in recent months.
New Unit Critisism
While developers and cryptocurrency firms see this union as very beneficial, gamers have remained suspicious of crypto assets, particularly NFTs. Nevertheless, play-to-earn (P2E) networks have grown in popularity where players may earn tokens by playing. These P2E networks are popular particularly in nations like the Philippines.
According to Brett Harrison, president of FTX US, blockchain technology expands on existing gaming elements such as avatars, products, skins, and prizes. This allows players to trade, possess, and invest in them.
Harrison went on to say that he believes the criticism stems mainly from a fear that the spotlight on cryptocurrencies will distract game studios’ attention away from delivering the best game possible for the gamers.
Critics claim that there are too many frauds in the cryptocurrency field and that proof-of-work mining negatively influences the ecosystem. A counter-argument would be that millions of game servers and power-hungry graphics cards do as well. Nevertheless, the transition seems to be well advanced.
Gaming Giants on NFTs
Ubisoft Entertainment (UBI) unveiled late last year a network that would enable gamers of one of its popular franchises to purchase and sell in-game NFTs. However, hardcore gamers were still opposed to the idea. GameStop (GME) also revealed its intentions earlier this month to build its own exchange for NFTs, as well as a $100 million fund for game developers that use it.
