FTX Forms A Team To Focus On Encouraging The Use Of Cryptocurrency And NFT In The Gaming World

FTX launched a new team focused on driving the adoption of cryptocurrencies and NFT tokens in the gaming world. (photo: doc. pixabay)

JAKARTA - Cryptocurrency exchange FTX launched a new team focused on driving the adoption of cryptocurrencies and NFT tokens in the gaming world.

According to a Bloomberg report, the initial offering of the new game unit will reportedly be a "crypto as a service" platform where game publishers can launch tokens and provide support for NFT in their games.

“We launched FTX Gaming because we saw gaming as an attractive use case for crypto,” an FTX spokesperson told Bloomberg via email. “There are 2 billion-plus gamers in the world who have played and collected digital items, and now can have them too.”

The formation of a new game-focused team from FTX is a sign of the ongoing push to bring blockchain-based products into the gaming space, as projects like GameStop's own NFT marketplace have demonstrated. But although game developers and retailers see crypto tokens and NFT items as promising revenue streams, gamers have voiced widespread skepticism over the need for blockchain technology.

In recent months, various game publishing companies have been forced to scrap proposed NFT projects following fan backlash, which has largely stemmed from opposing new forms of premium downloadable content that were seen as offering players little extra value.

Other blockchain critics point out that there are already many established markets for trading in-game items, making the value proposition of cryptocurrency ties unclear.

Brett Harrison, President of FTX US, told The Verge that his company believes blockchain technology can build on existing game features without compromising the experience of players who are hesitant to adopt them.

“I think the reaction is primarily that the focus on cryptocurrencies will distract game studio efforts from making the best games for players,” Harrison said in an email. “We believe that blockchain technology takes existing game features, such as in-game avatars, skins, and rewards, and allows players to own, invest and trade these items outside of the game. But enjoyment of the game for all players, including those who do not wish to participate in this kind of economy, should always be the primary goal regardless of whether blockchain technology is involved.”

For the FTX exchange, trying to build collaborations with game developers is another branch of its assault on the cultural space. The company was behind the recent launch of the NFT marketplace for the Coachella festival, where photos, posters and lifetime tickets to the festival were sold as NFT.

This year's Super Bowl will also see advertisements from FTX, which is one of many crypto companies vying for the attention of football fans.

After closing a $400 million funding round in January 2022, the company has become one of the most valuable private crypto companies in the world, and claims to be the third largest exchange by trading volume.

FTX's international operations were moved from Hong Kong to the Bahamas in September 2021, citing the Caribbean nation's favorable and comprehensive regulatory regime, although job openings for the gaming unit are currently registered under FTX US, the company's US affiliate.