Riot Games partners with Coinbase ahead of VCT Masters Toronto

Riot Games has announced a multi-year partnership with cryptocurrency exchange Coinbase, becoming the official blockchain technology partner for VALORANT and LoL Esports global events.

Riot Games x Coinbase – Integrating blockchain branding into esports events, no direct crypto transactions

According to a release, the new partnership will begin on June 7 with the VCT Masters Toronto. Coinbase will be featured in custom segments, event activations, co-branded content aimed at educating fans about blockchain technology, hospitality promotions, and giveaways in future events.

The deal currently only includes broadcasts and fan experiences, meaning that no cryptotransactions and other special promotions will be part of the deal. That said, this marks a major partnership in the esports industry, as the web3 space was previously perceived with skepticism by the community.

With Coinbase being a partner for LoL global events, it means that the branding will also be featured at the upcoming Mid-Season Invitational and World Championship, which will take place in Canada and China later this year. After VCT Masters Toronto, the next international event for the VALORANT scene is VCT Champions, coming in September in Paris.

The negative precedents between esports and the crypto industry

Even though Coinbase has been a long-standing partner for North American esports organization Team Liquid, the ties between crypto and esports haven’t been one of the greatest. Previously, North American team TSM and crypto exchange FTX signed a multi-year naming rights partnership for $210 million, the largest publicly disclosed esports sponsorship deal ever.

What was supposed to be an incredible milestone for the organization turned out to be a disastrous downfall when FTX collapsed the following year amid fraud investigations and filed for bankruptcy.

Even Riot Games themselves were affected by the FTX collapse, after the company signed a seven-year, $96 million partnership deal to feature the crypto brand as a partner for the LCS. The game company was even facing a lawsuit where it was accused of being part of fraud through its deal.

The precedents serve as a cautionary tale about the risks and responsibilities of corporate partnerships, especially when it comes to the volatile crypto industry.

The average esports audience might not be as financially savvy when it comes to digital currencies and the risk of inadvertently signaling trust and credibility to fans, many of whom may not fully understand the complexities or volatility of such investments.

For now, the goal for Coinbase seems to be more around education rather than blockchain integrations: it will be important to see whether further evolutions of the deal will be made soon.