Over the years, we’ve seen a bigger presence of blockchain and its related assets in the gaming space. We’ve also seen major gaming companies get involved in these digital assets, usually by incorporating NFTs or cryptos into gameplay, launching marketplaces, and so on.
However, Sony, the maker of PlayStation took a bold move last year when it acquired Whalefin, a digital asset exchange, from cryptocurrency lender Amber Group. The idea of a game maker owning a crypto exchange was rather unique but for about a year, the exchange remained unused.
Now, Sony is working to revive it and is reportedly looking to launch a new app to this effect. Many crypto exchanges see massive traffic via in-app trading so this could go on to be a profitable venture for Sony.
Some of its previous efforts to enter the web3 space have included a partnership with Aster Network and several patents that suggested an interest in NFTs. The NFTs have not quite come to fruition yet but given how Whalefin is just coming back into development after a year, all hope is not lost.
Still, some industry watchers find it odd that a gaming company is working on a crypto exchange. The link between crypto trading and gaming is not immediately evident but does exist. Many cryptos, for example, are used in the online gambling space, which has become quite popular over the years.
There are also tokens that are especially useful for gambling. These include tokens with fast speeds and low fees like Litecoin, which are now favourites of crypto users who also visit gambling sites. Because of these benefits, as well as the chance to make additional profit, Litecoin gambling has become a bonafide way to spend one’s tokens. Various crypto betting sites have been launched that allow players to enjoy a wide variety of games, the winnings from which they may then trade on exchanges.
All these tokens, however, tend to flow in and out of the industry via exchanges, whether through a consumer buying new tokens to gamble with or selling their winnings. The crypto gambling space is already worth billions so there would be some incentive for a company like Sony to own an exchange.
Once Whalefin is fully revamped and launched, it will be interesting to see how the markets take to it. If it is successful, Sony could very well influence other companies in the gaming space to get involved in crypto exchanges.
It would certainly be a new approach from what gaming fans are used to. There has been some controversy about the inclusion of crypto tokens and NFTs in mainstream games but how would fans respond to a crypto exchange backed by Sony and other gaming corporations? On the one hand, it could lend these exchanges a great deal of credibility. Crypto buyers are no strangers to exchange scandals, as has been seen with the collapse of platforms like FTX and QuadrigaCX. But surely an exchange backed by the likes of Sony will be an easier sell?
There is also, however, the risk of a branding mismatch. It is one thing for Sony to invest in NFTs or file for patents in the web3 space but a crypto exchange is a whole other matter. Some from both the crypto and gaming sides might even see this effort as disingenuous.
Ultimately, we simply need to wait and see if this is the next big trend for gaming companies looking to cash in on crypto, a minor detour on the part of Sony, or a complete flop.