Professional esports organization Team SoloMid (TSM) has announced that it is halting its sponsorship deal with bankrupt crypto exchange FTX.
The organization’s decision takes effect immediately. TSM said that their specialists have been monitoring the situation around FTX for a week, discussing further actions with the heads of the organization, and came to the conclusion that it would be more correct to stop cooperation.
The $210 million deal was finalized in June last year, when TSM was renamed TSM FTX. The partnership was to help the team open its offices in Asia, South America and Europe. It is noteworthy that after the conclusion of the transaction, TSM acquired FTT exchange tokens in the amount of $1 million, which were distributed to players and employees of the organization.
The suspension of the partnership means that the FTX branding will be removed from the official TSM name, team and player social media profiles and jerseys. The organization also assured fans and sponsors that the team’s financial assets remained intact and, as stated by TSM, they are not in danger.
“The current situation with FTX does not affect our plans, which were set earlier this year. We continue to be a strong, profitable and stable organization and believe that all the targets set will be achieved this year and next,” the statement reads.
Earlier, experts from the American crypto exchange Coinbase published a study in which they stated that the collapse of FTX affected too many companies and this would prolong the crisis in the cryptocurrency market for at least another few months.
Source: Bits
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