No two industries have such evident similarities as esports and cryptocurrency. The two are dominated by and attract young people who are not only tech-savvy but passionate about new and emerging technology and have no compunction about pushing it further. It’s, therefore, no surprise that many believe that these two industries will be closely tied together in the future.
Signs are already showing about a burgeoning relationship between the crypto industry and esports. For one, a flow of investments currently powering cryptocurrencies are concentrated around blockchain gaming and esports.
Dreamteam, an esports team platform, recently sealed a seed round involving Mangrove Capital Partners for $5 million. The company has also developed partnerships with heavyweight players in the industry like Fnatic, finalists in last year’s League of Legend championships.
The pairing of cryptocurrency and esports is best explained by Mangrove Capital’s partner David Waroquier. He stated that the “massive growth in esports popularity mixed with the fact that gamers eagerly accept the newest types of technology is creating the perfect storm for blockchain.”
He added that the use of smart contracts for the player’s salaries, tournament prizes, and sponsorship payments develops an environment that protects the esports industry from fraud. He emphasized that this type of security is what the virtual gaming industry needs to sustain its development.
On its end, the gaming industry is also aligning itself with cryptoconomy. Ripple was recently revealed to be the power behind the $100 million funds allocated solely to blockchain-enabled games.
According to Forte’s Brett Seyler, the $140 billion global gaming industry is driven by digital microtransactions, and it will greatly benefit from the resilience and security afforded by blockchain tech.