eFuse's Creator League collapsed in 5 days after creators found an undisclosed blockchain

The Creator League was announced on 2 September 2023 as a live-streamed game tournament with at least $250,000 in prizes, promoted by MrBeast. Teams were captained by top creators and streamers, such as Bella Poarch, Clix, Sapnap, CdawgVA and OpTic, who would promote it to a combined 226 million followers and sell $20 passes to watch the games.

The passes were connected to the NEAR blockchain, and Fortune reports that organizer eFuse had not disclosed this to the creators, and the press packet did not mention it. Many creators detest NFTs and crypto. YouTuber CDawgVA tweeted on 3 September that he was withdrawing because he had been given assurances that it had nothing to do with NFTs. An eFuse spokesperson told Fortune it was wrong not to explain the blockchain, which the company had thought was merely an accounting process.

eFuse disputed that the passes were NFTs because they had no resale ability and said it used the blockchain as a public ledger so the community knew passes were not oversold; DeCrypt said that, by that description, they were still a type of NFT. Five days after launch the league was postponed, and eFuse laid off 30% of its workforce, saying the staff who built and supported it were no longer needed.

Event postponed five days after launch; eFuse laid off 30% of its workforce

The passes were tied to the NEAR blockchain, but eFuse did not disclose this to the creators or in its press packet.

Many of the creators fronting the league dislike NFTs and crypto and said they would never have joined had they known.

eFuse treated the blockchain as an accounting detail, a spokesperson told Fortune, and later said that was a mistake.

The league relied on creator-captains to sell $20 passes to their followers, so their withdrawals removed the main audience channel.

If your product relies on technology your partners hate, tell them before launch. Hiding the blockchain behind 'accounting' cost eFuse its creator line-up in days.

eFuse said the Creator League was postponed with no return date, and CEO Matthew Benson said the company would reflect on community feedback and refine its structure. Fortune updated its story to note that eFuse disputes calling the passes NFTs and that the league was postponed rather than formally cancelled. Fortune framed the episode as a barometer of public opinion on NFTs after the SEC's action against Impact Theory.