Top Esports Organizations Affected by FTX Bankruptcy (TSM, LCS, and More)

Top Esports Organizations Affected by FTX Bankruptcy (TSM, LCS, and More)

Impact of FTX crash on esports organizations

Sam Bankman-Fried, the company’s creator, has resigned as CEO, according to a tweet from FTX, but he will stay on “to assist in an orderly transition.” The new CEO has been announced as John J. Ray III. This could heavily impact the esports community.

The revelation followed a week of disaster for FTX, which was known as one of the safest businesses in the risky cryptocurrency market. According to CoinMarketCap, it has dropped from being the second-largest cryptocurrency exchange to 96th.

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The Crash of FTX Will Affect Various Esports Organizations, Starting with TSM

ESPORTS
TSM x FTX Partnership

The demise of FTX might have a major effect on several esports organizations, particularly TSM, with which it signed a $210 million naming rights agreement in 2021. TSM referred to the partnership as “TSM FTX,” calling it the “largest in esports history.”

TSM stated that it would devote resources to esports and gaming over the next five years, when it announced the agreement with FTX in June 2021. One of the goals of the company was to “accelerate existing worldwide reach” by setting up offices all over the world, especially in South America, Europe, and Asia. Now, this partnership is under jeopardy due to the fall of FTX.

Just a few months after TSM’s agreement with the company was finalized, the largest League of Legends league in North America, the LCS, agreed to have FTX serve as its primary cryptocurrency sponsor. As soon as “FTX gold advantage” appeared on the scoreboard of every LCS game, North American League spectators could immediately see how FTX has improved the spectator experience.

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esports
FTX x LCS

The LCS’ collaboration with FTX was said to continue throughout the conclusion of the League of Legends season in 2028, however the financial details of the agreement are still unknown. FTX agreed to a $3.2 million sponsorship deal with the Brazilian group FURIA earlier this year.

Because its CS:GO team is participating at IEM Rio 2022 on its home ground, FURIA is presently the centre of interest in the FPS world. Nerd Street Gamers, a news outlet and organizer of esports competitions, officially signed a multi-year deal with FTX earlier this year as well.

It can clearly be seen the impact that FTX has had on the esports world with the number of partnerships that it has entered into. These partnerships are now facing a major threat due to the downfall of FTX, and only time will tell what will happen next.

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