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COMMENT: Esports orgs in SEA, please don't rush into NFTs just yet

Aloysius Low
·Contributing Editor
·3-min read
Stock image of NFT. Some esports orgs have an eye on creating their own NFT collections. (Image: Getty Images)
Stock image of NFT. Some esports orgs have an eye on creating their own NFT collections. (Image: Getty Images)

I get it. Esports organizations in Southeast Asia don't always make money.

Between paying salaries for everyone involved, franchise fees to compete in the various leagues, and advertising to promote the team, a team owner can easily down over a cool US$1 million before they even start.

When the crypto boom happened months ago, esports organizations were racing with one other to announce NFTs (Non Fungible Tokens) in a bid to get in on the hype.

In hindsight, especially with the declining price of crypto tokens, this may have not been a good idea.

But at that point, it probably sounded like one. Should they have gone ahead? I'm of two minds.

I personally think NFTs are a dumb and stupid concept. But if done in good faith and it helps to offset costs from running an esports organization, why not?

However, given what we've seen in the intervening months, those who avoided NFTs seem to have made the right call.

A quick check shows the organizations that have announced NFT projects have yet to debut the collection. And it's likely some will never do.

Another org, which has been working with a third-party NFT business with its own marketplace, released a bunch of terribly lacklustre NFTs.

And it's not like I have to actually pay for it – you know, right click and "save image as" – but given how ugly they are, I'd pass even if it was for free.

So how now, brown cow?

While critics have been cheering the crypto decline, especially since it makes GPUs more available to the masses, some crypto currencies are still higher than when they were a year ago.

Ethereum, in particular, is holding well despite plunging from its December high. That's because NFTs are part of the Ethereum blockchain, so there's interest in keeping the crypto holding up.

So should esports organizations still move into the NFT space?

Well, I'm not saying no despite my doubts about NFTs.

I'm saying don't rush.

That's because the technology is still relatively young, and while there's obviously an advantage to being an early mover, we're way past that now.

Instead, if esports orgs really want to use NFTs to raise funds with their fan base, they should do it with more care by offering better collectibles, or making it non-speculative.

Don't make randomly-generated "art" and call it a collection. And add a physical copy instead of a link to a JPEG. That way, at least it's real.

And I may be repeating myself from a previous article, but please, don't try to tie it to a metaverse, or make some "game" with the NFTs.

Let them just promote your org, but without any of the associated baggage that will reek of a ponzi scheme.

Aloysius Low is an ex-CNET editor with more than 15 years of experience. He's really into cats and is currently reviewing products at canbuyornot.com

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