YGG TV: How Are Web3 Games Affected by the FTX Collapse?
In this episode of YGG TV, Luis Buenaventura and YJohn Sedano explore the challenges caused by the FTX collapse and their impact on web3 games.
YGG TV, dubbed “the ESPN of web3 gaming,” is the latest online show produced by Yield Guild Games where community members can tune in to learn more about web3 gaming, discover the latest games, and stay up to date on activities in the web3 space. John Sedano, YGG’s Community Marketing Manager, spearheads the production of YGG TV episodes, which are released every Thursday at 9 p.m. SGT.
In this YGG TV episode, YGG Pilipinas Country Manager Luis Buenaventura joins John Sedano to discuss the state of the crypto industry and how the challenges it faced in 2022 have affected web3 games. They talked about the need to rebuild trust in the crypto community following recent events such as the collapse of FTX and Luna. They also compared Binance to FTX and discussed how crypto holders can safely utilize centralized exchanges to their advantage.
The following is an excerpt from the episode. Watch the full recording on YouTube.
Sedano (5:04): My next question for you, Luis, is how do you see the FTX situation affecting web3 games?
Luis (5:27): I can say very generally that the community's faith in crypto has been shaken over the last couple of months. And unfortunately, it wasn't just FTX. The Luna collapse also happened this year. That feels like a lifetime ago, but that was only six months ago. Those happened right next to each other, the Luna collapse, and then FTX.
This year was something else, it was definitely something else. We grew very, very large, and then we grew quite small in the same period. And I think that what we need to work on now is to figure out how to get the community, or maybe the newest users, how to win their trust back. That's for all crypto platforms, not just the gaming part. Because games, on one level, need to be entertaining and fun, the community has to be interested in it. But on another level, you need to know that when you make an investment in a web3 game, your money is safe. That's super important. I think that's what we're going to have to rebuild over the next year.
Sedano (6:35): I am an avid follower of Cryptoday, your newsletter. For you guys watching, definitely check out Luis' newsletter. One of your latest articles is about Binance. So my question is, what do you think about Binance?
Luis (6:51): I do think that Binance is in a much better position than FTX ever was. Because for one thing, Binance doesn't lend crypto.
Sedano (7:01): I remember that video from him where CZ says they're not in debt, they don't have any VC involvement.
Luis (7:06): Yeah, whereas FTX, they raised so much money, they lent and borrowed so much money. So there was a lot of cash movement. With Binance, they're a bit more traditional in the sense that, whatever you deposit in Binance, it just stays that way. So I think that we're in a better spot there. It should be useful to remember that Binance just reported that their revenue for 2021 was about $20 billion. So I think they're okay. They're probably not doing $20 billion in revenue in 2022. But in the past, they've done very well for themselves. So I think we're a little bit more safe there.
You can watch the full YGG TV episode on the Yield Guild Games YouTube channel.