Crypto exchange FTX is launching a gaming unit to drive token adoption

Illustration by Alex Castro / The Verge

According to a report, FTX is launching a new team focused on driving adoption of cryptocurrencies in the gaming world.

The initial offering from the new gaming unit will be a CRYPT as a service platform through which game publishers can launch token and provide support for in-game NFTs.

There are 2 billion people who have played with and collected games.

NFTs allow you to buy and sell ownership of unique digital items and keep track of who owns them. It can technically contain anything digital, including drawings, animated GIFs, songs, or items in video games. The NFT can be one-of-a-kind, like a real-life painting, or one copy of many, like trading cards, but the blockchain keeps track of who has ownership of the file.

Nyan Cat and the "deal with it" sunglasses are being put up for auction, with some selling for millions of dollars. There is a lot of discussion about the massive electricity use and the environmental impacts of NFTs.

The new gaming-focused team from FTX is a sign of the continued push to bringBlockchain-based products into the gaming space. Though game developers and retailers believe in the potential of the NFT items as a revenue stream, they have voiced skepticism over the need for the technology.

In the past few months, various game publishing companies have been forced to cancel proposed NFT projects after fan backlash, which has largely sprung from opposition to new forms premium downloadable content that are seen as offering little extra value to players. There are already many established markets for the trade of in-game items, making the value proposition of the tie-ins unclear.

The president of FTX US told The Verge that the company believes that the technology can build on existing game features without detracting from the experience of players who are hesitant to adopt it.

Harrison said in an email that the backlash was out of concern that the focus oncryptocurrencies would distract game studios from making the best game possible for the players. The primary objective of the game should always be the enjoyability of the game for all players, regardless of whether or not the technology is involved.

The FTX exchange is trying to build partnerships with game developers. Photographs, posters and lifetime passes to the festival were sold as NFTs in the recent launch of an NFT marketplace. FTX was one of the companies vying for the attention of football fans, and their ads will be seen by viewers of the Super Bowl.

The company has become one of the most valuable private firms in the world, and claims to be the third-largest exchange by trading volume, after closing a $400 million funding round in January.

FTX relocated its international operations from Hong Kong to the Bahamas due to the Caribbean nation's favorable and comprehensive regulatory regime, though job postings for the gaming unit are currently listed under FTX US.

There is a statement from FTX US.