FTX Bankruptcy Claims Another Casualty: Web3 Video Game Storybook Brawl Shuts Down – Here's the Latest
At this point, one would have thought the FTX domino effect was over, but the latest report suggests the opposite.
After forcing many over-leveraged firms to close shop, the FTX liquidity crunch has claimed the another crypto-related business.
The latest Bloomberg report revealed that Storybook Brawl (SBB), a Bankman-Fried-supported online video game, is about to close.
According to a tweet, SBB will shut down on May 1 following failed efforts to stay afloat after the FTX bankruptcy.
Bankman-Fried’s Beloved Video Game About To Close Operations
Storybook Brawl is a Digital Card auto-battling game well beloved by FTX's former CEO and co-founder Sam Bankman-Fried.
According to a statement by its co-founder Matthew Nass, the game will shut down its servers.
This development comes after the team had exhausted all options to keep its operation running, per the announcement.
However, SBB game servers will remain functional, and users can enjoy the services until May 1.
In March 2022, FTX US acquired Storybook Brawl’s developer, Good Luck Games LLC, for its gaming unit.
However, soon after the acquisition, FTX encountered a liquidity crunch that sent it into bankruptcy in November.
The video game (SBB) rose in popularity after its release in 2021 and became Sam Bankman-Fried’s favorite.
The embattled former CEO was reported to have played different video games during meetings.
Storybook Brawl Could Not Contain Community Backlashes
Several reports noted that FTX's bankruptcy was due to Bankman-Fried’s nonchalance with the exchange's management operations.
Issues escalated when people raised concerns about a large hole in Alameda’s balance sheet, causing an overwhelming run on FTX.
Authorities accused Bankman-Fried of diverting customers' funds to FTX's sister company Alameda Research, including several count fraud charges.
Storybook Brawl is only one of many firms that collapsed due to backlashes caused by over-exposure to FTX and Alameda.
The video game experienced backlash from users after FTX acquired its developer company.
Several fans posted negative reviews voicing their misgivings about the move on Storybook Brawl's marketplace, Steam.
Within a short time, the game’s review score moved from “Very Positive” to “Overwhelmingly Negative” as players complained about the addition of NFTs.
Notably, Storybook Brawl has been unable to recover from the backlash escalated by FTX's bankruptcy.