eSports.com AG Files for Insolvency: Another ICO Fail

Submitted by C Costigan on

Written by :

C Costigan

Published on :

eSports.com AG Files for Insolvency: Another ICO Fail

eSports.com AG, a German content website and cryptocurrency effort, has filed for insolvency.


START YOUR OWN SPORTSBOOK - 6 MONTH FREE TRIAL

This was hardly a minor venture.  Last year the company sponsored Counter-Strike: Global Offensive team Astralis for $2 million over a three year period.

eSports.com AG, however, was only started in 2017.

It also got mired in a cyryptocurrency initial coin offering or ICO for its Esports Reward Token (ERT), which could be used to purchase planned coaching lessons and training videos from its website, as well as bet on matches.  The betting component was later dropped.  The company claims it raised $5.8 million for the ICO.

eSports Observer also noted the following discrepancy found with the ICO:

Additionally, the ICO funding site initially claimed that the $20M hard cap was reached at the end of the campaign, but the final total was later confirmed to be $5.8M; eSports.com blamed a display issue for the incorrect sum.

eSports.com AG had also forged a partnership wtih ProSiebenSat.1, a sports business unit of a German media firm.

ProSiebenSat.1 issued this statement regarding the eSports.com AG insolvency:

“The insolvency concerns eSports.com AG. ProSiebenSat.1 has no direct business relationship with eSports.com AG. The joint venture operated jointly by eSports.com AG and ProSiebenSat.1 Sports GmbH (eSports.com GSA GmbH) is not directly affected by the insolvency. Our goal is to continue operating the eSports.com platform in German-speaking countries as before.

“As we are not part of the insolvency proceedings, ProSiebenSat.1 cannot make any statements on this matter.

“The insolvency of eSports.com AG has no impact on the eSports strategy and activities of the ProSiebenSat.1 Group.”

 

Related Content

Dave & Busters

Suit Against Dave & Busters in South Carolina Court Claims Arcade Games Are Unlawful Gambling

A state advocacy group filed a suit in the District Court of South Carolina Florence Division late Wednesday April 15 arguing the chain’s games function as unlawful gambling rather than entertainment.
Fanatics Markets

Fanatics Markets Unveils Combos

Just in time for basketball’s postseason, Fanatics Markets is introducing a bigger way to trade with Combos.
Curacao

Curacao Is Still the Most Popular Gambling License. But the Rules Have Changed

If you have spent any time around the online gambling industry, you have heard the same pitch for Curacao a hundred times: cheap, fast, easy. For years that pitch was essentially accurate.
1Win airplane with man stepping out

Tyga Enters 1win VIP Program, as Platform Blends Crypto and Entertainment

1win continues to evolve its VIP ecosystem, bringing global rapper Tyga into its high-tier community while reinforcing its positioning as a crypto-first entertainment platform.