The FTX Collapse Explained

One of the biggest sponsors in esports is collapsing as we speak.

FTX, a cryptocurrency exchange, sponsored Team SoloMid in a record-breaking $210-million deal. But that seven-year agreement barely made it to year two.

The timing is bad – esports hasn’t exactly been bulletproof this past year, and cryptocurrency as a whole is swinging downward.

So today we’re taking a look at what the FTX collapse means for esports – and where things might go from here.

Edited by: Jason Durante

Music used under license from Associated Production Music LLC (”APM”).

Skip to esports Chapter: 07:44

[derimeri]

One thing. BMW has not had a F1 team or suplied/sponsored one since... well it was before 2010 when they quit. I can't remeber the exact year.
So a small correction, just as a motorsport fan who enjoys your content. ^_^

[defaulted]

I mean, his name is literally Fried Bankman and people expect him to not fry his reputation managing a financial company.

[dustinfowler]

Larry said he's never wrong about these things, he nailed it.

[angelovillasanta]

That's Mercedes AMG Petronas F1 Team, not BMW. Merc also removed FTX from the W13's livery shortly after the news about FTX broke out.

[ProkarsGaming]

BMW's f1 team? FFS that's Mercedes 3:42

[hmurashi]

Bjergsen as TSM's poster boy.
FTX as TSM's sponsor.

Alternative video title: How Regi lost his house, car and clothes.

[BlakeWR]

"Cryto is somewhat on the downswing..."

Yeah, I'd call the second largest crypto exchange going bankrupt, the largest exchange being investigated for fraud and money laundering, and Bitcoin losing 60% of its value in 4 months a little more than a downswing...

[jaybartgis]

The good news is that unlike 2008, these crypto crashes don't seem to be affecting people not involved. Unemployment rate is still strong.

[VangKevinCatfish]

I download FTX and saw the fee and deleted the app

[heirkaiba]

Even I Seto Kaiba, doesn’t get involved into Cryptocurrency. That shit is fake money.

[markpiper]

6:45 ladies and gentlemen, this is how the stock market crashed in 1929.

[rogerioit]

Fyi, in 3:43 it is said BMW is an F1 team sponsor. It is actually Mercedes F1.

[TimothyRisby]

Since he was on the Bloomberg podcast in April we all knew it was 110% guaranteed this would happen.

[rainbowpickelgaming]

the f1 team that they sponsord is the mercedes f1 team that the team has suspended the deal

[jaffe]

Seriously, I think CS GO knife Skin is a better "crypto currency" than any crypto in the market. I know it is totally different kind of thing, but as a token currency, it work well

[AnimaPrisma_]

Watching all my favorite content creators reenact the events and narrate their pov of this crazy ass hell of a ride is soooo entertaining, ngl

It's like that Vantage Point movie

[nynms]

They sponsored Mercedes-AMG Petronas F1 team, not BMW. BMW has been out of Formula 1 since the early 2010s.

[dipanminz]

Correction in 3:44 thats a Mercedes F1 car and BMW is not even in F1 for a long time. i checked in on the sponsors of Mercedes F1, and there's no FTX in the website but I saw a news article and yes, Mercedes and FTX have parted ways. I love F1 so I have to correct this.

[ProjectASkate]

TSM falling left and right... except the R6 Division of TSM

[yvvonelee]

Can anyone explain the difference between a ponzi fund and cryptocurrency.