Atari delicenses gaming tokens with ICICB, to launch new tokens soon

Gaming company Atari has pulled out of a joint venture with financial services company ICICB Group as it plans to create and distribute a new crypto token for the gaming community. Atari said that it has terminated all licensing agreements with ICICB as of April 18 and has revoked its license to represent Atari or its brands including Atari Chain and ATRI token, which were launched as part of the joint venture in 2020.  

In a web post, Atari said that the “currently promoted ATRI tokens, and related websites (www.atarichain.com, www.ataritoken.com), whitepapers, and social media channels are unlicensed, unsanctioned, and are outside the control of Atari and should not be relied upon for guidance or information related to the ATRI token or Atari.”  

Atari said it will allow all existing ATRI token holders before April 18 to exchange them with the upcoming token. Owners of the existing token will have to present it at the time of exchange. Any tokens acquired after April 18, 6 pm Central European Time (CET) will not be eligible for the exchange, the company reiterated.  

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Launched in October 2020, ATRI tokens were used for payment in the video gaming and entertainment industry. In March 2021, Atari extended the deal for the development of Atari branded video game-themed hotels and casinos, where the token could be used for payment inside the hotel premises for VIP experiences.  

The financial impact of the exchange and creation of a new token will be revealed in the FY22 annual results. The estimated cost of termination of hotel and casino licensing agreements with ICICB is around Euro 11 million, the gaming company said.  

Founded in 1972 in California, Atari is one of the oldest gaming companies with a portfolio of over 200 games and franchises. The company was also instrumental in the development and distribution of some of the leading game consoles by Sony, Microsoft, and Nintendo.  

With the emergence of blockchain games, the use of gaming tokens has become quite common. In the popular play-to-earn game Axie Infinity, players can earn AXS tokens and use them for governance to vote on proposals for changes in the game’s blockchain protocol.