Community Gaming, a Web3 esports tournament platform, recently confirmed layoffs, cutting 17 out of their total employees. According to the company's CEO Chris Gonsalves, the decision was made due to the difficulties and recession the competitive gaming industry is undergoing. Before the downsizing, Community Gaming had more than doubled its total user base in the past year, reaching 250,000 users and facilitating more than 600 tournaments last month.

Started by Gonsalves out of his desire to bring faster payment solutions to esports, Community Gaming’s Series A funding of $16 million, backed by big crypto names such as Softbank, Binance Labs, and ConsenSys Mesh, has enabled them to take a significant step on their mission. However, with the unpredictable crypto market and overall industry struggles, the company has to make strategic plans in order to be successful.

The impact of the pandemic is also affecting esports. Major esports organizations and even annual events like BlizzCon were forced to cancel their live activities due to the virus, leading to investors and sponsors drying up. Small and big esports teams have gone through layoffs and gaming orgs have gone through massive losses due to their dependency on sponsorship.

Web3 solutions, according to Gonsalves, may be able to bring some relief to the esports industry. With technology that works in tandem with upcoming games and their IP, developers are able to create promising potential for growth. By following that path, esports organizations can adapt to the conservative time with stronger, futuristic plans.

In the esports world, Community Gaming is setting its eyes on a brighter future by addressing the payment problems in the industry. The ambition and their financial backing may bring the esports industry out of the recession, until it reaches the level of past years.



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