One of the largest cryptocurrency exchanges in the world, FTX, has filed for chapter 11 bankruptcy, leading esports organization Team Solo Mid (TSM) to suspend its $219 million naming rights deal. The fall of FTX has been swift and dramatic, with the impact going beyond esports, following the announcement last week that the exchange lost liquidity. What that means is anyone that was holding cryptocurrency with FTX was unable to sell their coins as the company did not have the cash on hand to distribute to its clients, effectively locking up client accounts until after bankruptcy is processed through the United States court system.TSM, the most valuable esports organization in the world, signed a 10-year naming rights deal with FTX in June 2021 for $219 million dollars. Upon completion of the deal, TSM was officially known as TSM FTX, complete with TSM members changing their social media handles to reflect the naming rights deal. In a case of bad timing, recent Twitter verification changes have made it so that all TSM official accounts and those of its members cannot remove the FTX branding at this time.RELATED: Streamer QTCinderella Leaves TSM, Claims Org Didn't Support HerUnder a week from the news of FTX's collapse, TSM released an official statement announcing that the partnership is suspended immediately. While Twitter handles will keep the FTX branding, all other mentions of FTX will be removed from TSM members, including sponsor logos on player jerseys. TSM claims that the organization will be profitable for the upcoming year even with the loss of FTX, as its plans, including the recent signing of Erobb221, was set earlier this year.

Even without the loss of its largest sponsor, TSM has not been having a good year in its various leagues. TSM's all-female Valorant team was recently let go after failing to qualify for the Game Changers Championship. The premier TSM team, and the one that gave the organization its name, had a disappointing season in the League of Legends LCS, finishing in 7th place out of 10 teams.

Fans of TSM, which remains one of the most popular esports organizations in the world, are largely praising the move. The common sentiment is that partnering with FTX was a mistake in the beginning as not only was the name "TSM FTX" awkward, but the cryptoexchange was incredibly unpopular in esports fan groups. Other organizations with FTX sponsorship deals, such as the NBA's Golden State Warriors and Miami Heat, have yet to comment on the downfall of FTX. Despite the loss of a major cryptocurrency exchange, a recent Sony patent shows that gaming companies are still looking into investing in NFT and blockchain technology.

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Source: Decrypt