(ETX Daily Up) – TeamSoloMid and FTX, these two names are probably new to you. Yet the link between North American esports structure TSM and cryptocurrency exchange FTX demonstrates new investment opportunities between two fast-growing sectors.
ESports blockchain x. What if we blend the two fastest growing markets today? On the one hand, esports is evolving with hundreds of millions of players. On the other hand, the blockchain ecosystem is still in its infancy, but full of opportunities for investors. North American structure TSM has signed a major partnership with FTX, a cryptocurrency exchange platform. The amount of the contract? $ 210 million over 10 years. The agreement that will most affect the name change of the organization. Thus, TSM becomes TSM FTX. Such partnerships are increasingly common in large esports structures. On Twitter, the reaction from the esports community has been overwhelmingly positive. Even basketball player Stephen Curry, star of the Golden State Warriors, left a small tweet in support of the movement.
Always knew @TSM going to the moon https://t.co/5DLtwBoZys
– Stephen Curry (@ StephenCurry30) June 4, 2021
Two rapidly changing ecosystems
By signing this colossal contract, TSM sent an encouraging signal to the entire industry. According to the New York Times, the deal will be more financially important than the association between Brooklyn Nets and Barclays to name their NBA room. And we are talking about one of the flagship franchises of the coming seasons. TSM was already the most expensive esports club with an estimated value of over $ 410 million, ahead of other well-known entities such as G2 Esports or Cloud9. FTX, for its part, is a cryptocurrency exchange with more than $ 4 billion in turnover every day. It also has its own currency, the FTX token, which costs around $ 35.
But the relationship between esports and blockchain is not new. This new technology offers players many features, such as the use of secure smart contracts for tournaments or the ability to avoid payroll fraud. Blockchain also allows you to create publicly available decentralized databases that let you know your stats and be part of the community rankings. In short, blockchain is an important issue in which esports must continue to grow.
$ 50 million training center
And the teams understood this well. Dignitas partners with Zytara, a digital crypto platform. G2 Esports recently launched a partnership with solution provider NFT Bondly. Prior to that, G2 Esports (again) partnered with Hdac Technology, which produces blockchain-related tools. It is interesting to understand that TSMs like G2 Esports are two structures created by self-taught video games. Their success is due to their efforts to develop esports and their community, which was very weak a few years ago. This partnership gives them the opportunity to grow their brand through significant financial investments and join forces with another rapidly growing industry. So far, this is a win-win partnership.
TSM wants to use this money for further development on a global level, opening offices at the reference points of its market. This will allow it to offer a variety of games that are still not very visible during esports competitions and their communities. The American structure is also building a futuristic training center for players worth more than $ 50 million. However, this partnership with FTX poses challenges for these two flagship games, League of Legends and Valorant.
Not without a hitch
After partnering with FTX, Riot Games, publisher League of Legends and Valorant refused to let TSM include FTX in their team name. Chris Greeley, Riot Games North America and Oceania esports manager contacted by DOT Esports, explains: “The TSM and FTX sponsorship agreement does not violate any LCS sponsorship rules, but crypto exchanges fall under the sponsorship category, which has restrictions on activation … Accordingly, the TSM rebranding and FTX branding on TSM jerseys will not apply to LCS or other eSports operated by Riot Games in North America. ”
In this situation, one might wonder why TSM agreed to a deal that it cannot show on the platform with the largest audience, i.e. the Riot Games competition? If no official response has been received for TSM, this is a winning choice anyway. Before other structures follow you?