TSM Ends Contract with FTX: Crypto Exchange Collapse and Lessons for Esports

American esports organization TSM (Team SoloMid) has put an end to its high-profile partnership with cryptocurrency exchange FTX. The deal, valued at $210 million and considered one of the largest in esports history, has become one of the most notable examples of how a financial industry crash can impact related industries. What led to the split, why is it important not only for TSM but for esports as a whole, and what’s next? Let’s find out.

The FTX Collapse and Its Impact on the Industry

The partnership between TSM and FTX began with a big announcement in 2021. The $210 million deal immediately caught the attention of not only esports fans but also traditional media. It was an example of how the rapidly growing crypto industry was looking to integrate into the world of video games and esports to reach a younger, tech-savvy audience. FTX didn’t just become TSM’s title sponsor — it was literally built into the brand’s DNA, which became officially known as TSM FTX. The exchange’s logos adorned players’ jerseys, social media profiles, and even official broadcasts. It looked like a match made in heaven for decades to come, but after just over a year, the partnership fell apart.

November 2022 marked a turning point for the cryptocurrency industry. FTX, one of the largest exchanges, filed for bankruptcy due to a severe liquidity shortage and allegations of financial fraud. Billions of dollars in user deposits were frozen, and the company’s founder, Sam Bankman-Fried, found himself in the crosshairs of investigations. Events unfolded at lightning speed: in a matter of days, the exchange turned from a market leader into a symbol of instability in the crypto sector. TSM, like other FTX partners, found itself in a difficult situation that required immediate solutions.

Logos, T-shirts, and social media: how to remove FTX?

Removing FTX branding was not as easy as it might seem. Over the course of a year of partnership, the crypto exchange logo appeared on almost every platform where TSM is present: from the players’ T-shirts to their avatars on social media. However, the organization promised that the process would be completed as quickly as possible. An interesting nuance: some platforms, such as Twitter (now X) and YouTube, complicated the task due to changes in functionality. TSM had to adapt to the new conditions in order to completely erase traces of the partnership. This aspect highlights how deeply sponsorship agreements are integrated into the esports business.

FTX was not the only crypto company investing in esports. Cryptocurrency exchanges and blockchain projects were actively looking for ways to attract a young audience that sees digital technologies as the future. However, the collapse of FTX has raised serious doubts about the reliability of such partnerships. Many teams and tournaments began to reconsider their relationships with crypto projects. This event became a warning to the entire industry: short-term gains from large investments can result in significant reputational losses.

TSM did not delay in reacting. The organization released an official statement in which it announced the immediate termination of cooperation with FTX. An important part of the statement was the emphasis on financial stability: That message was key. TSM sent a message to its fans, sponsors, and players that it would not only survive the split with FTX, but also remain profitable. That’s rare in esports, where many teams depend on investment and sponsorship.