April 25, 2024

TSM claims stability despite FTX bankruptcy

tsm

TSM FTX logo

Team SoloMid (TSM), a North American esports organisation, has issued a statement in an attempt to reassure shareholders and fans following the fall of its naming rights sponsor FTX.

TSM signed a $210 million contract with the cryptocurrency exchange in 2021, renaming the organisation TSM FTX. The team also purchased $1 million in FTT, FTX’s native token, which has contributed to the company’s financial difficulties.

After a turbulent week that resulted in the exchange filing for bankruptcy on October 11th in Delaware, USA, FTX, one of the world’s largest cryptocurrency exchanges, collapsed. Sam Bankman-Fried, ex-CEO, apologised to users and investors for “ending up here.”

The statement attempted to convince TSM’s shareholders and fans that the company would be able to retain budgetary stability despite the loss of one of its primary sponsors. The team is still sponsored by the American insurance company Geico, the automotive manufacturer General Motors, and the PC peripheral brand Logitech.

TSM said in the statement that it was seeking legal counsel to safeguard its team, staff, fans, and players, and that it had no knowledge of FTX’s predicament other than what had been revealed publicly.

TSM also claimed to be “stable and profitable,” with a strong foundation. The organisation stated that it is still forecasting profits for “this year, next year, and beyond.”

The announcement comes after Brazilian organisation FURIA withdrew its $3.2 million agreement with the exchange on Friday, directly following the announcement of bankruptcy.

FTX also has deals with the League of Legends Championship Series (LCS) and Nerd Street Gamers, neither of which has commented on the status of their collaborations.

According to TSM’s statement: “Along with the rest of the world, TSM has been closely following the situation surrounding FTX. We have no insight into the matter other than what has been reported publicly. We are currently consulting legal counsel to determine the best next steps to protect our team, staff, fans, and players.”

“To be clear, TSM is built on a solid foundation. We are stable and profitable, and we continue to forecast profitability for this year, next year, and beyond. We look forward to a great year in 2023.”