Esports tech company eFuse launched a “Creator Leaguewith major influencers like Bella Poarch, iShowSpeed, and Clix last week, and used YouTube giant MrBeast’s massive reach to promote it. But now the company has shelved the project after controversy surrounding the league’s use of blockchain technology.
Esports insider And Sports magazine reported Tuesday that eFuse also laid off 30% of its staff, which is believed to have affected about 30 employees. Although eFuse has not confirmed the exact numbers DecryptA statement said the company will undergo “restructuring.”
“The Creator League was an experiment in creator-led, fan-controlled esports,” said Matthew Benson, CEO of eFuse, in a statement. “We remain excited about the Creator League and will take the time to consider community feedback and refine its structure. As with all ambitious projects, the path to innovation is winding. We are willing to keep learning and moving gaming forward.”
8 creators. 4 splits. 1 CHAMPION 🏆
Here’s everything you need to know about Creator League Season 01 👇 pic.twitter.com/aQoxCsYHeM
— Creator League (@CreatorLeagueGG) September 2, 2023
The Creator League offered fans “Community Passes,” which cost $20 each and linked to each of the gamers and influencers leading teams in the esports league. With each pass, viewers can join an exclusive Discord server, vote in polls related to the competition, and participate in certain competitions.
Shortly after the launch, some influencers associated with the competition complained about the use of blockchain technology. Efuse said yes the habits Close to blockchain to “validate data and log information related to the community passes.” However, the company claimed in a statement that the passes are not NFTs.
“Within the product, the blockchain provides additional transparency regarding inventory levels,” said eFuse VP of Engineering Shawn Pavel in a statement.
Creator League moving forward… pic.twitter.com/5thVepUIk7
— Creator League (@CreatorLeagueGG) September 5, 2023
“No tokens. Not transferable. Not fungible. There is no cryptocurrency involved,” an eFuse representative told me Decrypt via email.
However, as described by the company, the passes sound like soul-bound tokens: a type of token locked to the wallet that initially mints (or buys) it and cannot be traded. If that is the case, then there is still some form of NFT, even though the restrictions mean that there is no speculative element to it.
“We used the blockchain to increase transparency and create a ledger so the community knew we weren’t overselling passes,” the spokesperson added.
Crypto confusion
The Creator League controversy first started when YouTuber Connor “CDawgVA” Colquhoun — one of eight creators whose name is used in the League — said he was planning to leave the project.
“I accepted to join the Creator League without fully understanding the technology behind it,” Colquhoun tweeted on Sunday. “Needless to say, with the information currently available, I intend to withdraw.”
So I’ll be honest with you, I’ve accepted to join the Creator League, without fully understanding the technology behind it. Needless to say, with the information currently available, I intend to withdraw.
At no point was I told or informed that Blockchain existed…
— Connor (@CDawgVA) Sept. 3, 2023
“I was assured it had nothing to do with NFTs. Given my outspoken hatred of such technology, I would never agree to participate if I had known,” said Colquhoun, who has millions of followers on YouTube and Twitch, mostly for his content about exploring Japan.
OTK’s pseudonymous co-founder known as “TipsOut” said the esports organization was also unaware of any NFT elements in the Creator League, and was “told there was no NFT/crypto component. ”
OTK and TipsOut did not immediately respond Decrypt‘s request for comment. MrBeast, who promoted the Creator League through his popular YouTube channel and his Feastables candy brand, didn’t immediately respond to Decrypt‘s request for comment.
Especially those of the Creator League neither official trailer neither the promotional video on Twitter mentions the use of Near.
On a Twitter Room Sunday, crypto gaming streamer Bryce “Brycent” Johnson said he has “no idea” whether Creator League affiliate influencers knew about the project’s blockchain connections.
“Efuse, from my perspective, has always been transparent with me and given me enough information,” Johnson said, confirming that he had been made aware of the Creator League’s use of Near.
Those of the Creator League purchase page doesn’t make it clear to buyers that they are buying something that uses Near on the backend, and they are blogging to inform explaining how the pass works do not mention that the passes are tracked through a blockchain network. Efuse said fans can request a refund via email if they wish.
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When asked for more details about eFuse’s financial relationship with Near, an eFuse representative explained Decrypt via email that there is an “18 month relationship” between the two entities.
“They provided a cash grant to exercise their platform and build our technology on top of it. We made no money on the deal. The grant allowed us to learn and experiment with the blockchain, but again, that was a while ago,” the eFuse spokesperson said.
The Close Foundation did not respond immediately Decrypt‘s request for comment, but a September 2022 transparency report confirms that Near has provided a grant of an undisclosed amount to eFuse as part of its “Ecosystem” funding effort (the entire category of approximately 29 projects collectively received $133 million in grant-based funding).
This is not the first time eFuse, which also owns news site Esports.gg, has faced controversy. Last year, Patrick Klein, eFuse’s chief strategy officer, resigned allegations of sexual harassment created during Klein’s previous role at Ohio State University. In 2020, a university study found Klein guilty of violating the school’s sexual harassment policy over text messages and social media exchanges with 13 different student-athletes.