The Chiliz Group, the parent company of fan token platform Socios.com, has announced the acquisition of European esports organisation OG Esports.
The blockchain provider and operator has purchased a 51% controlling stake in the organisation.
The acquisition comes after OG Esports’ fan token became the first blockchain-based esports token on Socios to surpass a $100m (~£73.3m) market cap. The organisation launched its token on the platform in 2020 after it entered a partnership with the platform in 2019.
As a result of the acquisition, Xavier Oswald, OG Esports’ co-founder and shareholder, will become the new CEO. Meanwhile, fellow co-founders Johan ‘n0tail‘ Sundstein and Sébastien ‘Ceb‘ Debs will launch a new project that aims to ‘consolidate the team’s competitive foundation’ and drive innovation across esports and web3.
“OG has always been about community and innovation, and since 2020, it has demonstrated that fan tokens can create genuine economic value and meaningful engagement,” said Alex Dreyfus, Founder and CEO of Chiliz.
“With a $100m fan token economy already established, OG represents the perfect case study for what’s truly possible when we place fan tokens at the centre of the fan economy.”
As a result of the acquisition, Socios.com has become the $OG Fan Token’s exclusive wallet and engagement platform.
Founded in 2015, OG Esports has grown to become one of the most reputable esports organisations in Europe. In 2018 and 2019, the organisation notably won Dota 2’s The International, securing over $26m (~£19m) in prize money.
Chiliz is no stranger to the world of esports. Alongside OG Esports, the provider has also collaborated with Ninjas in Pyjamas and Team Heretics to create fan tokens through its Socios.com platform.
The Growth Of Web3 In Esports
In recent years, the intersection of web3 and esports has grown stronger. This has even seen many esports companies expand into cryptocurrency to bolster their portfolios.
FaZe Clan’s parent company, GameSquare, has been increasingly active in the crypto space, recently signing deals with Rekt and Animecoin. Meanwhile, earlier this month, esports holding company NIP Group announced its acquisition of on-rack cryptocurrency mining machines.
