Why did TSM end partnership with FTX? Real reason and consequences explored
Esports organization TSM has announced that it is suspending its partnership with cryptocurrency exchange FTX. This news comes days after FTX, which was previously valued at $32 billion, filed for Chapter 11 bankruptcy in the United States.
The esports team put out a statement on its official Twitter account, informing fans that its $210 million partnership with FTX would be halted immediately, while it is in the process of removing all FTX branding from its social media profiles and merchandise.
The North American esports organization assured fans and investors that it remains profitable despite just ending a major partnership. In a press release, the organization stated that it expects to continue bringing profits and that FTX filing for bankruptcy will not affect its modus operandi.
In June of 2021, the popular esports organization agreed to a ten-year partnership with FTX, worth a reported $210 million total. As part of the deal, the organization began competing in esports leagues under the name TSM FTX, featuring the latter's branding on its uniforms.
What was supposed to be a long and lucrative partnership between the two companies was put in jeopardy following the news that FTX filed for Chapter 11 bankruptcy, as well as CEO Sam Bankman-Fried stepping down from his position. This was quite the fall, as the Bahamas-based crypto exchange service was previously valued at $32 billion.
On November 13, the esports team put out a statement saying it was keeping a close eye on the developments surrounding FTX and consulting with legal counsel on how to best handle the situation. It also reassured the public that it would still maintain profits for the foreseeable future.
This morning, TSM announced the decision to pull the plug
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