Chiliz acquires 51% stake in esports powerhouse OG…plans to expand fan token use

Chiliz Group, which operates the fan token platform Socios, has secured management control by acquiring a 51% stake in the famed esports organization OG.

According to Decrypt on the 17th (local time), OG was founded in 2015 by Dota 2 legends Johan Sundstein and Sébastien Debs, and was the first team to achieve back-to-back victories at the Dota 2 World Championship 'The International' in 2018 and 2019. Since then, it has expanded its activities to Counter-Strike, Honor of Kings, Marvel Rivals and others.

OG was also the first esports team to launch its own fan token on Socios in 2020. That token recently surpassed a market capitalization of US$100 million, becoming the largest among esports team tokens, and reached an all-time high of US$24.78 last week ahead of international tournaments. On the day the acquisition was announced, it was US$16.88, up 9% from the previous day.

With this acquisition, Xavier Oswald will take the position of CEO, and the co-founders will devote themselves to a new strategic project that combines esports and Web3 innovation. Chiliz CEO Alex Drapers said, "Bringing OG into the Chiliz Group is an important step in enhancing the fan experience," adding that "with the founders still at the center and a digitally native fanbase, it is the perfect foundation to experiment with next-generation esports fan engagement models."

He added that they are reviewing "token-based governance, NFT ticketing, exclusive drops, on-chain royalty systems" to demonstrate the value fan tokens can bring to fan communities, and explained that "innovative ideas such as token buybacks using team revenues and tournament prizes are also possible."

OG currently holds the largest fan token by market capitalization on the Socios platform, and Socios is expanding the fan token ecosystem in partnership with traditional sports clubs such as FC Barcelona, Juventus, and Paris Saint-Germain.