The hype around esports is fading as teams and organizations shrink due to a weak sponsorship and ad market falling vc investment and the crypto meltdown cecilia danastasio bloomberg

The once-thriving esports industry has fallen on hard times as funding sources dwindle and signs abound that athletic competition via video games doesn’t have anywhere near the earning potential investors anticipated.

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Sports-business billionaires and gaming executives had hopes that esports could one day could scale into an organization like the National Basketball Association. But after a boom five years ago, several prominent esports teams and organizations, particularly in the US, are contracting, the result of a broad economic downturn, a venture capital industry that’s no longer willing to accept growth without profits and a crypto meltdown that has undercut a significant source of backing.