Binance to get FTX: implications for gaming and eSports

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Cryptocurrency exchange Binance has released a letter of intent to acquire the assets of fellow exchange, FTX. While crypto, Web3, and games have a similar audience, FTX has some direct (and flashy) ties to gaming.

In February 2022, FTX launches gaming department. Billed as “cryptocurrency as a service,” the department’s goal is to help increase adoption of cryptocurrencies and NFTs by helping developers integrate them into games. The company has made a Pre-commitment invested $100 million in the Solana blockchain alongside Lightspeed Venture Partners and Solana Ventures. Leads to the announcement, Solana’s token price was successful but the price is still not stable.

With this game segment, FTX also acquired a game studio. In March 2022, Good Luck Games joined FTX ahead of the card fighting game launch Storybook Brawl.

FTX also invests heavily in esports. Signed exchange biggest esports naming rights deal ever with TSM. The $210 million deal saw the team rebrand as TSM FTX for 10 years. Compare this with FTX naming rights Miami Heat’s stadium purchase agreement ($135 million over 19 years). Notably, TSM has not removed the FTX branding from their social media since the announcement.

But that’s not all. The exchange also signed an agreement with Riot Games to sponsor the North American League of Legends Championship Series (LCS). FTX sponsors all gold-related stats on broadcast and it is the current sponsor for the Most Improved Player award. While the exact value of the deal was not disclosed, according to release“The seven-year partnership with FTX represents the largest sponsorship deal Riot has ever signed for an eSports tournament.”

FTX has also signed a number of smaller deals. This includes a one-year, $3.2 million contract with the Brazilian team FURIA and strategic partnership with Comcast-owned tournament organizer Nerd Street Gamers.

FTX CEO Samuel Bankman-Fried (SBF) confirmed that the US divisions of FTX and Binance will not be affected by the deal, although it is unclear what their ultimate fate will be. and how this affects corporate partnerships and sponsorships.

Compared to FTX, Binance is much more reserved when it comes to partnerships, even though they have invest in gaming. Binance CEO Changpeng Zhao is a firmly believe in simple, non-exclusive transactions. It is unclear how this acquisition may affect FTX’s ongoing transactions in the gaming, sports, entertainment and more sectors.

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