The Esports Advocate can confirm that a major round of layoffs occurred at eFuse on Tuesday. While we don’t know the exact number of those affected, as of this writing, some sources put the number of layoffs in the dozens, and across multiple departments.
A representative for the company confirmed with us that layoffs occurred as part of a restructuring plan but would not confirm the exact number of employees affected.
The company also issued a statement on Tuesday (which we have included in its entirety below) announcing that it is postponing its recently announced Creators League, based on feedback from the community and issuing refunds to anyone who may have already purchased a pass for the program.
The Creators League, a competition series that would feature high-profile content creators including members of the OTK Network, Mr.Beast, Optic Gaming, and many others, was announced at the end of the week. Following that announcement, it was revealed that the company was using a grant from the NEAR Foundation to build a blockchain-based,web3 marketplace and platform. Some claimed that the company was using NFTs via a $20 USD pass, but that is in contention because these passes can not be traded or resold, according to the official website for the platform.
Some content creators later claimed that they were not informed about the crypto components of the initiative when they signed deals with the company including OTK co-founder TipsOut and content creator CDawgVA—a contention that has not currently been confirmed, as of this writing.
The entire eFuse release can be found below:
eFuse Postpones ‘Creator League,’ Will Process Refund Requests and Clarifies Project was Not an NFT Launch
Company Restructures Team to Better Align with High-Performing Products
Columbus, Ohio (September 5, 2023) – eFuse, the esports software company operating Creator League today announces the project’s postponement, and consequently an organization-wide restructuring after launching Sept 2nd.
“The Creator League was an experiment in creator-led, fan-controlled esports,” said Matthew Benson, CEO of eFuse. “We remain excited about the Creator League and will take some time to reflect on community feedback and refine its structure. As with all ambitious projects, the path toward innovation is winding. We’re prepared to keep learning and pushing gaming forward.”
Per recent feedback on the creator league launch, the company is also clarifying that the NEAR blockchain is being used to validate data and log information relating to the community passes. All passes are purchased in USD and therefore, no cryptocurrency is being purchased. Additionally, the company states the Creator League community passes are not considered NFTs nor a token launch because they had no transfer utility, which means there is no ability to resell. The sale of the Creator League community passes elevated the fan experience by granting passholders special season-long access including voting rights and digital and in-person experiences.
“Within the product, the blockchain provides additional transparency to inventory levels for what was designed to be a limited release,” said Shawn Pavel, VP of Engineering for eFuse. “We apologize for not intentionally disclosing the blockchain’s limited use within the Creator League purchasing process and have implemented practices to ensure that doesn’t happen again. To be clear, the Creator League is not an NFT project and we have never sold tokens.”
Those buyers who remain uncomfortable with the blockchain technology can request a refund by emailing firstname.lastname@example.org from the email address used to create an eFuse account and in the email body include the order numbers for the passes you would like refunded. There will also be a button on the community hub page allowing for a refund to be requested. Passholders should expect their refunds within seven days, but some transactions may take longer based on their individual bank’s transaction policy.
As an expression of appreciation for all fans who purchased community passes during the initial sale, eFuse will honor its commitment to host an open (e.g. free-to-enter) Fortnite tournament. In the coming weeks, eFuse will welcome fans to register for the competition. Updates to the schedule and calendar of events for Creator League will be made in the coming weeks. Original Split 1 dates will be postponed.
For more on eFuse, please reach the media contact above or visit: eFuse.gg