2022 was not a good year for NFT projects in gaming. Players have expressed a lot of skepticism, even hatred, towards the technology. Then at the end of 2022, the provider FTX went bankrupt, dragging parts of the crypto market down with it. The head of Square Enix wants nothing to do with it, dismisses it as a small setback, and predicts enormous growth for NFTs in 2023.
This is what happened in the crypto market in 2022:
- FTX Trading Ltd. was one of the largest crypto exchanges with over one million users and a valuation of over 18 billion US dollars at its peak (via reuters).
- The CEO, Sam Bankman-Fried, was able to attract major partners like the LoL team TSM, investors sometimes rushed in with deals worth over 210 million US dollars for his company.
- In November 2022, the company went bankrupt. In just one night, FTX lost 94% of its value and had to file for bankruptcy.
The consequence is: With FTX’s bankruptcy, the price of its own crypto coin FTT also fell. However, the crash also dragged the entire crypto market down: even the well-known and already struggling currencies Bitcoin and Ethereum lost value.
Bankman-Fried was arrested shortly after in the Bahamas, facing charges of fraud and embezzlement of customer funds, among other things. Many experts in gaming saw the crash as the downfall of NFTs related to blockchains and the idea of Web 3.0.
However, the head of Square Enix (Final Fantasy), Yosuke Matsuda, speaks almost solely about NFTs in his New Year’s address. He believes: this is where the future lies, and his company intends to fully embrace Web 3.0 in 2023. Last year, Square Enix raised concerns among fans by venturing into NFTs.
In our special, we explain what NFTs are all about:
Square Enix CEO praises NFTs, plans to expand projects in 2023
The focus of Square Enix should, according to Matsuda, be on blockchain. In his address, he states: “In the business sector, we have named three investment areas in our mid-term business plan. Among these, we focus most on blockchain entertainment, to which we are dedicating aggressive investments and efforts for business development.”
New blockchain games are planned, some of which are already known, while others are yet to be announced. The development should shift from the idea of monetization to the interests of gamers:
“The market was driven more by speculative investors than by gamers in 2023. In other words: the main contents were created with the premise that blockchain and NFTs should result in monetization. […]
However, there is now a trend to view blockchain technology as a means to an end and to discuss what needs to happen to result in new experiences and excitement for customers.”
Matsuda does not go into detail about which NFTs projects are in store for Square Enix. The head of the MMORPG Final Fantasy XIV, one of Square Enix’s flagship titles, has previously spoken out clearly against NFTs.
Endwalker is the latest expansion for Final Fantasy XIV. In the video, we explain the most important information:
Matsuda recognizes the major crash of FTX only in passing and still sees NFTs on an upward trend. As proof, he points out that the term “Web 3.0” has established itself as a buzzword among business people.
However, the setbacks of last year are considered normal and part of the development. Matsuda says: “New technologies and systems lead to innovation, but they can also cause significant confusion.”
In the community, the statements are met with incomprehension and criticism. One user on Twitter criticizes: “A company with so much talent and so many beloved IPs […] and he can only talk about blockchain and NFTs.” There are even calls for Matsuda to be replaced as CEO of Square Enix.
The concern among players mainly arises from the fact that crypto projects have often been used for fraudulent schemes in the past. Speculators lost up to 3 million euros because they fell for tricks.
This is not only true for large-scale cases like FTX. In gaming, blockchain and NFTs have also been a phenomenon for some time. However, developments here are not always stable, games shut down – and players are then stuck with their purchased NFTs:
Players invest over 260,000 euros in NFT game that is now shutting down – What happens to the money?
