FTX's Fall from Grace: How the Crypto Exchange's Collapse Impacts the Gaming Industry
The FTX-Riot Games Deal
In August 2021, Riot Games, the developer of the popular multiplayer online battle arena game League of Legends, signed a sponsorship deal with cryptocurrency exchange FTX. The multiyear deal gave FTX exclusive rights to display its branding during a seasonal tournament of the North American League of Legends Championship Series (LCS).The deal was a major coup for FTX, which had been pouring money into sports and entertainment sponsorships in an effort to raise its profile. But the partnership was short-lived. In November 2022, FTX filed for bankruptcy after it was revealed that the company had been operating a massive Ponzi scheme.
Riot Games' Response
Following FTX's collapse, Riot Games swiftly terminated its deal with the company. In a statement, Riot Games said that it had been "saddened and disappointed" by FTX's actions and that the company was "committed to ensuring the integrity of its competitions and protecting our players."Riot Games' decision to end its deal with FTX is a sign of the growing backlash against cryptocurrency companies in the wake of FTX's collapse. Several other major sports and entertainment companies, including the NBA and Formula 1, have also terminated their partnerships with FTX.
The Future of Cryptocurrency Sponsorship
FTX's collapse has cast a long shadow over the cryptocurrency industry. The scandal has raised concerns about the safety and legitimacy of cryptocurrency exchanges, and it has made many businesses hesitant to partner with these companies.It is unclear what the future holds for cryptocurrency sponsorship in the gaming industry. It is possible that the collapse of FTX will lead to a decline in interest in cryptocurrency sponsorships, or it could simply make businesses more cautious about which exchanges they partner with.
Comments