The Rise and Beast-Fall of eFuse Creator League: Blockchain Controversy
Last week, eFuse, an esports technology company, announced the launch of its "Creator League," featuring popular content creators like Bella Poarch, iShowSpeed, and Clix. The initiative garnered significant attention, thanks in part to a promotional push utilizing MrBeast's massive YouTube subscriber base. However, the project faced immediate controversy due to its use of blockchain technology, leading eFuse to temporarily suspend the league.Before the league's suspension, eFuse had been in the spotlight for a different reason – the company reportedly laid off around 30% of its staff. While eFuse did not disclose specific figures, they released a statement acknowledging the layoffs as part of a restructuring effort. Despite these challenges, eFuse expressed continued enthusiasm for the Creator League concept and pledged to take community feedback into account while refining the format.The Creator League introduced "Community Passes," which fans could purchase for $20 each. These passes were associated with various gamers and social media influencers who oversaw teams within the esports league. Passholders gained access to a private Discord server, allowing them to engage in league-related polls and tournaments.However, concerns emerged within the esports community regarding the league's use of blockchain technology. eFuse stated that it was using the Near blockchain to "validate data and log information" related to the Community Passes. They clarified that these passes were not NFTs (non-fungible tokens).The controversy intensified when one of the YouTube creators featured in the Creator League, Connor "CDawgVA" Colquhoun, announced his intention to withdraw from the project due to a lack of understanding about the technology involved. Additionally, Bryce "Brycent" Johnson, a crypto gaming broadcaster, expressed uncertainty about whether other influencers associated with the league were aware of its blockchain ties. Responses from other parties involved, such as OTK and TipsOut, were mixed, with some claiming they were unaware of any NFT or crypto elements in the league.Despite the use of blockchain technology to record Community Passes, eFuse did not explicitly communicate this fact to customers on its sales website or blog entries. However, they have stated that they will honor refund requests submitted by fans via email. When questioned about their business relationship with Near, an eFuse spokesperson revealed an "18-month relationship" with the blockchain platform, which had provided a cash grant to support eFuse's tech development.The Near Foundation, which provided the grant, did not immediately respond to media inquiries. However, a transparency report from September 2022 confirmed that eFuse had received an undisclosed amount as part of the foundation's "Ecosystem" funding efforts.Notably, eFuse has faced previous controversies, including the resignation of its Chief Strategy Officer, Patrick Klein, due to sexual harassment claims stemming from his time at Ohio State University. A university inquiry in 2020 found that Klein had violated the school's sexual harassment standards in his interactions with multiple student-athletes via text and social media.
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