Exchange Of Cryptocurrencies To Encourage Token Usage, FTX Is Developing A Gaming Division

• They’re launching FTX Gaming because They think games are a fascinating use case for crypto, an FTX spokeswoman said in an email to Bloomberg. There are more than 2 billion gamers worldwide who have played with and collected digital objects, and they may now own them.

• The company has become one of the most expensive private crypto firms in the world, and claims to be the third-largest exchange by trading volume, after closing a $400 million fundraising round in January 2022.

• They believe that blockchain technology takes existing game features like in-game avatars, skins, and awards and allows players to own, invest in, and trade these items outside of the game. 

According to a Bloomberg article, cryptocurrency exchange FTX is forming a new team to promote cryptocurrency and non-fungible token (or NFT) adoption in the gaming industry.

More Than 2 Billion Gamers Worldwide

The new gaming unit’s first product will apparently be a crypto as a service platform that would allow game producers to issue tokens and enable in-game NFTs. They’re launching FTX Gaming because They think games are a fascinating use case for crypto, an FTX spokeswoman said in an email to Bloomberg. There are more than 2 billion gamers worldwide who have played with and collected digital objects, and they may now own them. As ventures like GameStop’s own NFT marketplace illustrate, the continuous desire to introduce blockchain-based products into the gaming field is reflected in the new gaming-focused team from FTX.

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 However, although game creators and retailers view crypto tokens and NFT products as a lucrative revenue source, players are sceptical of the necessity for blockchain technology. Various game publishing companies have been forced to cancel planned NFT initiatives in recent months due to fan criticism, which has mostly stemmed from hostility to new types of expensive downloadable content that are perceived to provide no additional value to gamers. Other blockchain sceptics argue that there are already a plethora of established markets for the exchange of in-game products, making the value proposition of bitcoin tie-ins questionable.

According to Brett Harrison, president of FTX US, blockchain technology can enhance existing gaming features without detracting from the experience of gamers who are hesitant to accept it. He believe the pushback stems from a fear that the focus on cryptocurrencies would distract game producers’ efforts away from delivering the best game possible for players, Harrison wrote in an email. They believe that blockchain technology takes existing game features like in-game avatars, skins, and awards and allows players to own, invest in, and trade these items outside of the game. However, regardless of whether blockchain technology is used, the enjoyment of the game for all players, even those who do not wish to engage in these types of economies, should always be the primary goal.

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$400 Million Fundraising Round In January 2022

Another prong of the FTX exchange’s foray into the cultural arena is its desire to form relationships with game makers. The company was behind the recent introduction of an NFT marketplace for the Coachella festival, where NFTs were used to sell images, posters, and lifelong passes to the event. FTX was one of many crypto companies fighting for football fans’ attention during this year’s Super Bowl, and its advertising were viewed by viewers.

The company has become one of the most expensive private crypto firms in the world, and claims to be the third-largest exchange by trading volume, after closing a $400 million fundraising round in January 2022. In September 2021, FTX’s international activities Theyre relocated from Hong Kong to the Bahamas, citing the Caribbean nation’s attractive and thorough regulatory environment — but employment openings for the gaming division are now published under FTX US, the company’s US subsidiary.