How has the crypto space affected esports?

Crypto companies have been pouring money into the esports space in recent years, witnessing an explosion in esports, and Bitcoin has also been used for some esports league prize pools. Total esports spending has also soared to $2 billion in 2022, and esports viewing has become a thriving business, with live streaming platform Twitch reporting an astonishing number of esports viewing hours as of July this year. 770 billion minutes.

The two industries, crypto and esports, have highly similar target audiences. The average age of cryptocurrency and esports enthusiasts is between 18 and 35 years old, with a spirit of exploration and a willingness to spend a lot of time on the Internet. They are all male-heavy fields, they value digital products, and they have seen the potential of eSports and cryptocurrencies to move from the non-mainstream to the mainstream.

After going through the cycle of crash and surge, cryptocurrencies are slowly intertwined with various industries, and the e-sports and crypto fields are also getting more and more attention from enterprises and developers, especially with the introduction of NFTs.

The integration of crypto into the esports world will open up new opportunities for entrepreneurs and esports teams.

Crypto.com previously announced as the official global marketing partner and official global cryptocurrency platform partner of Twitch Rivals, the Twitch event brand of Amazon’s live gaming platform. Crypto.com will obtain rights to brand display and media placement. Twitch is one of the most important players in the esports industry, with more than 140 million monthly active users for their game streaming service. Considering the large audience that eSports has, as well as the relatively large young user base, it is not difficult to see that the industry has great appeal to the crypto space.

With the continuous penetration of the field of encryption into the field of e-sports, the rapid development of e-sports in the future is inseparable from the support of encryption technology, so how encryption technology will promote and change the development of e-sports, mainly in the following aspects.

Building a decentralized e-sports platform

E-sports involves many stakeholders, such as players, game developers, sponsors, media, advertisers, teams, etc. They need a comprehensive platform, and blockchain technology can provide support for the construction of the platform.

An esports platform whose underlying technology is powered by blockchain can bring stakeholders together, and decentralization can help stakeholders connect securely and seamlessly. Ideally, industry enthusiasts can use the open and decentralized platform to gradually become professionals, playing a positive role in the cultivation of talents in the e-sports industry, while stakeholders use the decentralized platform to manage bonus distribution, player transactions, media Rights, corporate sponsorships, advertising, fans, etc. will also be very convenient and fast.

Optimize the e-sports competition process

Smart contracts can act as an agreement between game developers and event organizers, which will ensure event organizers pay game developers before running matches, while the transparency of smart contracts can also eliminate concerns about unfair prize distribution.

The blockchain also reduces the cost of maintaining and operating a secure database. The platform can use the on-chain network as a foundation and build related processes in a distributed database. It will become easier for developers to use blockchain development platforms such as Ethereum.

Purify the environment of e-sports competitions

The eSports industry is working hard to crack down on match-fixing, but match-fixing is not uncommon in the eSports industry. Just yesterday, LDL (Domestic League of Legends Development League) announced the recent anti-gambling rectification announcement, investigated and punished 28 people for fake matches, suspended and removed relevant teams and players.

How has the crypto space affected esports?

Source: Sina Weibo

Blockchain can reduce the cost of running an eSports platform, and in disguise it can also reduce the cost of organizing and marketing competitions. The cost of the team is reduced, the salary of the players is improved, and the enthusiasm for participating in the fake match will be relatively reduced. All financial transactions will be transparent after they are on the chain, which will also have a binding effect on the organizers of the event. Another important point is that the transparency of the blockchain can help protect the interests of marginal stakeholders. Many teams and leagues have closed or ceased operations due to lack of access to pay for their staff and staff, unfair financial distribution and an overall lack of transparency.

New spectator incentive mode

Marketers of e-sports events can use blockchain to introduce new incentive models to promote the development of the industry. Users can get corresponding Token rewards by watching the game. Points can also be earned in the system designed by the encryption platform, and users can also exchange the points into Tokens to trade or hold to generate passive income.

Apart from the above influences on platform construction and operation, what else drives the continuous integration of e-sports and encryption?

A foreign study shows that the brand influence of e-sports is far greater than that of traditional sports. It is worth noting that many practitioners in the e-sports industry or sports leagues are also involved in innovation in the crypto space. Ryan Wyatt, now CEO of Polygon, previously worked for Major League Baseball (MLG) before running YouTube Gaming, which broadcasts esports games. Benoit Pagotto, director of branding and marketing for the Fnatic team, founded RTFKT, an NFT startup that was later acquired by Nike.

Crypto companies want to gain a huge eSports audience, a new channel for their user growth, and eSports startups need a lot of capital upfront. For a long time, most esports teams have been in the red. As a leading domestic League of Legends team, RNG is also in deep financial crisis, and the lawsuit over the salary and wages of former players MLXG has not been properly resolved. As the industry leader, RNG is still like this, so the team at the bottom can only barely maintain. Encryption companies and e-sports teams, one for people and one for money, so they hit it off. It has always been an open secret that crypto companies gain the brand effect of new user groups, e-sports teams get funds to survive the cash-burning stage, usher in the industry’s growth and development, attract more attention, and finally get returns.

While the pandemic has boosted viewership for esports events, esports teams have yet to capture the same cash or mainstream attention as traditional sports leagues. But as mentioned earlier, esports sponsorships can offer crypto companies greater value by doing more with less for event viewers that have significant overlap with crypto audiences.

Abroad, e-sports teams have embraced crypto sponsorships one after another. Such crypto sponsorships have been growing steadily since the beginning of last year. Coinbase sponsors several clubs such as Team Liquid, Evil Geniuses, and more. Coinbase has also signed major esports event operators ESL and BLAST. Team Vitality added blockchain platform Tezos as its main sponsor earlier this year, while exchange Bitstamp sponsored Immortals and Team Guild.

This is just the tip of the iceberg of encrypted e-sports transactions. After the sponsorship is reached, the name of the encrypted exchange and blockchain platform will be placed on the team uniform, and the sponsor logo will also be embedded in the team’s Twitch live stream and Twitter promotion.

But the partnership hasn’t always been smooth sailing, mainly because of some gamers’ resistance to cryptocurrencies, especially NFTs. Common complaints include the prevalence of crypto scams by some blockchain companies not delivering real social value, and the belief by many that game publishers use NFTs as another way to extract cash from players. NFT proponents believe that the technology will change the traditional game publishing model, provide players with more benefits through the ability to resell items on the secondary market, and generate reward tokens through play and earn, and players have more say in governance , and interoperable NFT items can be used in multiple games.

The constant convergence of the crypto space and esports is now forming a full circle. NFT game makers are running their own tournaments with huge prize pools. Axie has announced plans to hold an official world championship at its AxieCon event in September. Collectively, the three games will offer $1 million worth of AXS tokens as prize money.

How has the crypto space affected esports?

As crypto practitioners begin to focus heavily on the eSports space, and more and more Web3 games also use eSports leagues as a go-to-market strategy, the connection between the two will only grow. E-sports is closely integrated with the encryption field in terms of game content and form. Along with new products to attract more users, it is a win-win for the industry and will be an irreversible trend in the future.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-has-the-crypto-space-affected-esports/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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