Community Gaming’s CEO and Founder Chris Gonsalves on the Future of Crypto in Gaming
by Community Gaming in Web3 · 2021-10-29

On October 19th, some of the best and brightest in the esports and blockchain industries met for Advertising Week for the Gaming with Crypto: When Two Ecosystems Converge Panel. On this panel were host and esports broadcaster Jeff Eisenband, CEO and founder Angela Dalton of Signum Growth Capital, the founder of the Electronic Gaming Federation Tyler Schrot, and the CEO and founder of Community Gaming Chris Gonsalves.

Community Gaming (CG) has worked hard to build a blockchain enabled platform to help alleviate the pain points that the esports industry faces when it comes to payouts. They have also become a key hub when it comes to bridging mainstream gamers and the world of blockchain through community building, education, grassroots tournament support and the Play2Earn Foundation. As more and more aspects of gaming become interwind with digital currency, it’s only a matter of time before esports and crypto merge on a greater scale.

Digital transactions in gaming have gone hand in hand together since the World of Warcraft days, and continue in games such as Hearthstone. But the way that these transactions happen may change with time, especially as small to medium sized game developers try to compete with bigger companies like Activision-Blizzard and Riot Games.

“Game economies are mostly closed loops, you can’t trade most things you buy,” said Gonsalves. “You’re starting to see [start up game developers] launch their titles where they can sell NFTs, whether its land, skins, rare items in the game that are probably scarce. With this they can fund themselves early on. You can then track who owns items with NFTs and prove lineage history with secondary trading.”

There is more revenue shared to be made from NFT’s than just the one time sale. Mobile gaming for example is worth 85 billion and esports is only currently worth around 2 billion. Game developers and brands who are involved can potentially make secondary profits off of trades, exponentially increasing their overall profit. Angela states that for most people it’s about owning NFTs, having that identity and status of having them before they really become more mainstream. But the level of crypto and esports crossover hasn’t hit it’s peak yet.

“Overlap of esports and crypto is only 14 percent in the US, with 44 percent in India in comparison. Emerging markets have been better to adopt the overlap,” said Dalton. “Teaching an American about Crypto is like teaching a fish about water. We don’t think about whether or not our currency will work so it works better in economies where it isn’t as secure.”

With other markets like Latin America being more open to fintech/neo banks, crypto currencies can be more stable or worth more than bank backed ones. For organizations like Community Gaming, this is a big part of why it’s payout method of crypto is effective no matter where the winning team is from.

“One of the biggest pain points at the pro or amateur level is the payouts. They can sometimes take up to three months to get paid out, you can get paid day 89 of a 90 day pay cycle,” said Gonsalves. “Someone from Brazil who’s a grassroots organizer can get paid out immediately after the tournament ends. Players can trust it’s getting held in escrow, in a smart contract.”

Tyler from EGF pointed out the importance of protecting future esports athletes, whether pro or collegiate, from bad crypto investments as well as unfavorable contracts with agents and/or sponsorships. Overall, the full potential of crypto has been fully utilized, but with CG and others leading the way, the future of crypto in gaming and esports looks bright. But as Eisenband mentions, there is still a lot to learn.

“You finally understood gaming, now you’ve got to understand crypto.”