What I saw (without reading) was crips vs bloods. A third team would be a hispanic gang (LK, etc.), by nature you don't see where these come from until it's too late.
My suggestion is have a basic crips/bloods setup and a secret quest to sell your soul to a new overlord to create a third faction. The only problem is something has to fuel the wars. In this case it's all pixels. By increasing rare spawn rates and item drop rates you'll likely drive players to the zones to farm an item for the 10th time due to PvP.
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