FTX, the cryptocurrency exchange, announced the launch of a ‘crypto-as-a-service’ gaming outfit. This service would be known as FTX Gaming and help the developers launch in-game tokens. It will also help integrate non-fungible tokens or NFTs into their gaming projects.
This will operate through the exchange’s US arm, i.e., FTX US, and it will aim at pushing blockchain-based products into the gaming space. This move comes a few months after FTX announced that it wanted to co-invest USD 100 million with the Lightspeed Venture partners and Solana Ventures to develop the crypto gaming projects.
An FTX spokesperson had this to say to Bloomberg“ We are launching FTX Gaming because we see games as an exciting use case for crypto.” There are 2 billion+ gamers in the world who have played with and collected digital items and can now also own them.”
In January this year, FTX managed to get a huge USD 400 million in the form of funding. As per Verge, it is now one of the most valuable private crypto firms in this world. FTX also spearheaded the launch of the Coachella Festival, where the posters, pictures, and validity passes were sold as NFTs.
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FTX gaming intends to take the platform to organizations and projects that are going to leverage web 3.0. Earlier, working as a partner at Lightspeed, Amy Wu moved to FTX and will now take care of this USD 2 billion web 3.0 venture fund. She confirms her approach by saying, “We can provide all of that white-labeled (FTX-as-a-service) for the largest gaming companies in the world and new indie studios that are looking for a turnkey solution.” She also mentioned that she was super excited for FTX to be a significant player in providing and being a technology vendor for the gaming sector.
The merger of crypto and gaming by this crypto exchange is an effort to move out of mainstream crypto trading and enter the world of blockchain-based gaming. The Play to earn P2E games have become quite popular as 60% of US, UK, etc., based game developers have now incorporated the blockchain into gaming.
FTX tweeted recently, “There’s a future where two billion gamers get to own what they earn, and we want to help build it,”
The P2E games will reward the players with the in-game NFTs as they go on to complete multiple objectives. The NFTs could then be traded with other cryptocurrencies and make them a significant source of revenue.
Brett Harrison, CEO of FTX USA, tweeted that “As game studios seek ways to bring ownership, transferability, and price discovery to their in-game economies, we intend to partner with them to provide backend exchange technology,”
Over the last year, the NFT sales seemed to have jumped as the investments came pouring in. As per the Jefferies research, the NFT market will touch a valuation of USD 35 billion this year which will zoom to USD 80 billion by 2025.
Recently metaverse gaming platform Axie Infinity also broke the records as it generated online sales worth USD 4 billion as per data from CryptoSlam. This is the first platform with an NFT collection that would help achieve this milestone. This number is twice that of CryptoPunks, which also garnered 2 billion dollars through its ape avatar NFT sales.