The collapse of FTX, a major cryptocurrency exchange and data provider for the web3 gaming industry, had a significant impact on this rapidly growing sector. News of the company’s insolvency sent shockwaves through the web3 gaming community, causing many players to lose confidence in their favorite platforms and causing many developers and traders to abandon their projects.
The fall is said to have caused a greatly detrimental effect mainly in web3 gaming because of the relations between Solana and FTX. Solana is one of the biggest projects which lost a lot in its Tronix when FTX collapsed. It also caused Solana to have no trust in investors and some even withdrew their investments.
On Nov 24, the Twitter space #Web3 Gaming was hosted by Tegro Earn, featuring Footprint Analytics, Tegro Earn, KCC Games Guide, and Earn Alliance. The purpose of the event was to discuss varied opinions on how FTX’s collapse affected web3 gaming as a whole.
Many participants agreed that the collapse of FTX has had a significant negative impact on the web3 gaming industry, causing many developers and traders to abandon their projects or stop trusting existing platforms.
Siddharth Menon, the founder of Tegro said;
“There is a setback; there’s an entire trust issue. It comes back to why in the first place, Bitcoin was born. We don’t trust centralized entities. it’s not like people have lost faith in crypto in general.”
However, some argued that FTX’s failure had also provided opportunities for other players in the space to rise and fill the void, ultimately leading to new innovations and growth for the industry. Regardless of its impact, it is clear that the web3 gaming sector will continue to evolve and grow over time as more innovative platforms emerge in this rapidly-changing landscape.
Footprint Analytics community Manager Alex Cooper said:
“Since everybody is taking their money off of centralized exchanges and now centralized exchanges can’t be trusted, are people going to start storing and stacking their tokens on DeFi projects? Are we going to see another wave of DeFi protocols, especially for gaming?”
Footprint Analytics is building blockchain‘s most comprehensive data analysis infrastructure using its GameFi, DeFi, and NFT analytics tools. With the impact of FTX’s collapse still reverberating throughout the web3 gaming community, Footprint Analytics is well-positioned to play a key role in helping this industry achieve continued growth and success.
“A lot of projects will lose the chance of funding, especially small games that got funding through web3.On one side, we’re going to see a lot of scams disappearing, but we’re losing a lot of great potential.”
Earn Alliance’s community manager, Juan Jose Martinez, said
“Most games are trying to get players from Web2, and the easiest way to do that is just giving them easy access, and the way to do that is centralizing. In one side, games will become centralized, and on another we’re going to see a rise of decentralized games, but for people who are already in the ecosystem.”
How did this affect the existing GameFi Protocols in the web3 gaming industry
While there may have been some short-term setbacks, it is clear that web3 gaming will continue to grow and evolve in the long run. As new platforms and innovative solutions emerge, the web3 gaming industry remains poised for continued success and growth. And as long as the web3 gaming community remains passionate, dedicated, and focused on building a better future for web3 platforms, there is no doubt that this dynamic industry will continue to thrive.
However, in order to ensure continued success and growth moving forward, stakeholders in the web3 gaming industry will need to work together to address the challenges posed by FTX’s collapse. This includes improving transparency and investor protections, as well as supporting new projects that offer innovative solutions for addressing the unique needs of this rapidly evolving sector.
