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FTX is starting a new gaming unit
FTX Gaming, which operates through FTX's U.S. subsidiary, will launch with a crypto-as-a-service platform through which game publishers can introduce tokens and offer support for NFTs. The company this month began hiring a team of software engineers with experience programming the Unity game engine. The move into the gaming industry follows FTX's announcement in November that it would invest $100 million with two partners to advance the integration of the Solana blockchain into video games.Bloomberg reports that the push of cryptocurrencies into the gaming industry has been accompanied by controversy. Fans and developers alike have criticized "play-to-earn" models in which players can benefit financially from participating in blockchain-based games. Proponents of merging the crypto and gaming industries say digital tokens and NFTs give players more ownership of the items they earn while playing games.
FTX steadily expanded its presence in the gaming industry
FTX has been active in the gaming industry for some time. In 2021, the company paid $210 million for the naming rights to esports organization TSM and recently partnered with Nerd Street Gamers to sponsor the upcoming Nerd Street Championships this summer. Doing so will make crypto pay-outs to event users while educating participants about blockchain technology and its benefits.The launch of the gaming unit is FTX's latest attempt to expand beyond its crypto trading roots. In January, Brett Harrison, head of FTX US, said the company is working on adding stock and options trading to the exchange in "a couple of months," competing against existing providers.
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