In This Article
Crypto is becoming a bigger part of the esports world, and two of the biggest names leading the way are G2 Esports and TSM. The use of crypto in TSM and G2 highlights how teams can approach this technology in very different ways.
G2 is using NFTs and fan perks to build stronger communities, while TSM is focusing on blockchain infrastructure to power tournaments and payments. By looking at G2 Esports, TSM and crypto, we can see how these strategies are shaping the future of fan engagement and competitive play.
Key Takeaways
- G2 uses Samurai NFTs on Solana as membership passes that unlock fan perks and exclusive content.
- TSM focuses on tournaments by building its own Avalanche-based system for games and payments.
- G2 plans to make fan perks easier to claim using Solana upgrades that reduce costs and simplify actions.
- TSM will expand tournaments, bring in community validators, and use new Avalanche tools to grow its network.
- Both teams are showing how crypto can improve fan experiences and competitive structures in different ways.
A look at G2 Esports, TSM & Fan Tokens: Summary
In this guide, we’ll explore how two major esports teams, G2 Esports and TSM, are using crypto in different ways. We’ll break down G2’s focus on NFTs and fan perks, TSM’s focus on tournament infrastructure, and how these strategies reflect the wider role of crypto in esports.
We’ll also cover the benefits and risks of each approach, and look at what’s coming next as Solana and Avalanche roll out upgrades that will shape both fan engagement and competitive systems.
Crypto in G2 & TSM Esport
Crypto has been gradually weaving itself into the esports ecosystem, particularly through large-scale sponsorship deals and new web3 products. Two major organizations, TSM and G2 Esports, have approached it in very different ways. In 2021, TSM signed a historic partnership with crypto exchange FTX, rebranding to TSM FTX.
The deal was valued at $210 million over 10 years, making it one of the biggest sponsorship deals in esports history. At the time, FTX also pursued brand placement in multiple titles, adding its name to teams, jerseys, and categories across platforms like League of Legends and Rocket League.
That move wasn’t without risk. The historic deal collapsed in late 2022 after FTX declared bankruptcy. This created tension between TSM and Riot Games, which has strict activation restrictions around cryptocurrency exchange sponsors. Riot Games Esports even updated LCS sponsorship rules following the fallout, especially regarding naming conventions and asset exposure.
After parting ways with FTX, TSM’s CEO Andy Dinh guided the team toward on-chain infrastructure instead of just brand integration. In early 2023, TSM launched a custom Avalanche Subnet for its Blitz tournaments. Using AVAX as gas, this Subnet supports matches, rankings, and rewards while incorporating community governance. It’s part of a long-term plan to scale to global events, streamline revenue, and avoid traditional friction in tournament signing, payment, and success systems.
In contrast, G2 Esports focused more on fan tokens, NFTs, and membership products. They first teamed up with Bondly on the Polygon blockchain but ended up in legal conflict. G2 later pivoted to Solana, launching their Samurai Army collection in early 2022.
This included 6,262 NFT passes that granted access to a premium esports team community. These NFTs became the key to G2’s Premium membership, which includes perks like merch input, meet and greets, and exclusive content.
Why Crypto Fits the Esports World?
The average esports organization makes more than half its money from sponsorship, often tied to branding across tournaments, team assets, and digital age content.
This heavy reliance has made the esports industry vulnerable to economic downturns or shifting trends. So, web3 tools like tokens, NFT access passes, and fan tokens give teams more control over their organization’s monetization.
These tools are scalable, and they work across organizational levels, especially when you consider that esports teams regularly compete in multiple titles. Crypto exchanges are actively supporting teams with payment solutions, including stablecoins, for cross-border payouts.
These cryptocurrency systems improve prize deal distribution in real time, something that would take days or weeks using old systems. Blockchain-based ticketing is another emerging use case.
Sports teams like Red Bull Racing have already experimented with NFT tickets, which prevent fraud and scalping. Esports tournaments often face the same issues, especially when dealing with sold-out events or global competitions. Verifiable blockchain tickets solve this by confirming ownership, controlling resale, and helping fans compete fairly for access.
Crypto also enables flexible digital ownership. Whether it’s an exclusive skin, team jersey, or one-time tournament badge, blockchain makes sure that each item is traceable and secure. That’s one reason platforms like Dot Esports and Esports Observer have tracked growing adoption of crypto tools in areas like collectibles, category placements, and competition entry.
Fan Tokens Explained
Fan tokens are blockchain-based assets issued by a team or organization, usually via platforms like Socios, which runs on the Chiliz chain. These tokens give fans access to limited voting rights on non-critical team matters, like jersey designs or walkout songs.
Teams like Team Liquid, Alliance, OG, MIBR, and Team Heretics have all released fan tokens. Some even tied token ownership to exclusive IRL events or merch giveaways.
Price fluctuation is a concern. Though fan tokens are sold as fan engagement tools, they still move like financial assets. Their success depends on speculation, which brings up regulatory and naming convention concerns in countries like the U.S. That’s why teams usually avoid positioning them as investments, even if platforms like Crypto.com and Binance host them.
There’s also growing scrutiny around utility. Most teams now tie tokens to ongoing features like discounts, community chats, and access to limited-edition NFT marketplace drops. This helps give the tokens long-term value and integrates them into actual team platforms instead of treating them like temporary fads.
G2 Esports and Web3
G2 Esports entered the web3 world through Bondly, which originally used Polygon for its NFT infrastructure. The deal broke down, but G2 took the experience and built a better system.
In January 2022, they launched Samurai Army using the Metaplex protocol on Solana, paired with the Phantom wallet. Each NFT granted access to a private Discord-style community with layered features.
Users followed a few simple steps: buy SOL on a crypto exchange, create a wallet, verify ownership, and link it to the G2 app. This process was designed to be beginner-friendly, especially for those outside the crypto or digital age communities. The setup became a model for how an esports team could smoothly onboard fans into a blockchain system.
The relaunch also featured better perks. Holding a Samurai NFT meant access to Premium content, player Q&As, and private livestreams. The model went beyond one-off collectibles and formed a real membership layer for fans. Other esports teams like Faze Clan and New York Times-featured projects have followed similar paths.
Inside G2 Esports’ Blockchain Strategy
First, G2 Esports tied its NFTs directly to Premium membership, which gave the digital assets actual utility. These weren’t static JPEGs. They were functional passes used to unlock in-app benefits. Each step, from buying SOL, creating a wallet, and verifying ownership, was clearly explained through G2’s official onboarding site.
Second, they reduced complexity. Tools like Metaplex and Phantom made it easier for everyday fans to engage. Since G2’s audience spans the world, ease of use across languages and borders mattered. The team made smart design choices that worked even for first-timers who were new to crypto exchanges or the blockchain space.
Third, they gave fans a voice without handing over control. Users could vote on merch styles or input ideas for digital perks, but core decisions, like game strategy, titles, or tournament structure, still stayed with staff. This mirrored the hybrid model used in traditional sports and avoided the chaos that often hits full-on DAOs.
Finally, G2 was transparent about risks. The Bondly situation showed how fast a partnership can fall apart, and they’ve since taken care not to promise future token prices or success. Like other esports organizations, they’re experimenting, not overpromising. They’re keeping an eye on regulation, the middle ground between finance and fandom, and how to scale globally without losing control.
TSM Esports and Crypto
After TSM’s FTX sponsorship deal with crypto exchange FTX, the team rebranded as “TSM FTX,” and the esports sponsorships were designed to fund new divisions, strengthen its presence across multiple titles, and grow internationally.
The partnership gave FTX brand placement across TSM jerseys, broadcast content, and live League of Legends tournaments. This was one of the biggest agreements in the huge industry of esports sponsorships, showing how fast cryptocurrency exchange FTX was expanding into the esports scene.
Once FTX went bankrupt, Team Solomid quickly removed all FTX brand placement from uniforms, digital overlays, and matches, and it had to revise its activation restrictions with Riot Games to comply with updated LCS sponsorship rules.
This episode became one of the clearest cautionary tales in the League of Legends competitive circuit. It also coincided with reports about crypto exchanges’ fall, which affected other Counter-Strike: Global Offensive and Rocket League events that relied heavily on esports sponsorships.
In the wake of the historic deal, TSM decided to change its approach. Instead of focusing on naming rights, the organization turned toward building blockchain infrastructure. On March 7, 2023, TSM and its Blitz platform announced Avalanche as their exclusive partner.
Blitz now runs on an Avalanche Subnet that powers tournaments and uses AVAX for gas fees. Over time, they plan to expand the network, increase community participation, and avoid the mistakes that came from relying too heavily on a single partnership.
TSM’s Blockchain Strategy
TSM’s blockchain strategy revolves around sustainable tournament hosting and stable revenue. By moving away from fragile esports sponsorships and building on Avalanche, they gained more control over their ecosystem.
The Subnet allows matches to run at scale without impacting the main chain. Core, Avalanche’s wallet product, manages Bitcoin payments and digital assets, making it easier for players to participate.
The system is built to handle competition-driven activities across multiple titles, from League of Legends scrims to Counter-Strike tournaments. Community members will eventually be able to help validate, giving the setup more organizational-level involvement.
This approach reflects lessons learned from the FTX sponsorship deal, which relied on external funding rather than internal control. It also ensures they are not ahead of regulatory frameworks or over‑dependent on volatile partners.
How G2 and TSM Engage Fans with Tokens?
G2 Esports focuses on NFT membership products, while TSM focuses on competitive infrastructure. Fans buy SOL, set up a Phantom wallet, purchase NFTs through marketplaces, and verify them in the G2 app.
This gives them access to community perks, merch votes, and exclusive content. It’s a clean example of on‑chain fan engagement in a huge industry where team identities are increasingly digital.
TSM, meanwhile, uses Avalanche to build tournaments that prioritize gameplay over collectibles. The Blitz Subnet hosts prize‑driven matches and ladders where players can compete without needing deep crypto knowledge.
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This gives Team Solomid more independence and aligns with their league activities across multiple titles, including Counter-Strike and League of Legends, while also positioning them well in Europe and North America markets.
Comparing G2 and TSM’s Fan Token Strategies
G2 and TSM are both using crypto, but they’re doing it in different ways. G2 is focused on building closer connections with fans through NFTs and community perks.
TSM is putting its energy into creating strong systems for tournaments and payments. The table below shows how their strategies differ.
Aspect
G2 Esports
TSM
Primary objective
NFTs as fan memberships
Blockchain infrastructure for tournaments and payments
Sponsorship approach
Focus on fan collectibles
Less reliance on esports sponsorships after the FTX sponsorship deal
Key titles
Solana NFT community, Samurai Army
League of Legends, Counter Strike, Rocket League
Fan engagement
Community perks and exclusive drops
Prize‑based tournaments with smooth payment systems
Risk factors
Past partnership disputes with Bondly
Volatile crypto exchanges fall and activation restrictions after FTX
This comparison shows how G2 is focusing on fans, while TSM is focusing on building reliable systems. Both approaches reflect different ways top teams are using crypto to grow.
Benefits & Risks of Using Crypto in G2 & TSM
For G2 Esports, the benefit lies in using NFTs to build ongoing communities, while the main risk is dependency on external partnerships. Their early experience with Bondly delayed rollout and forced restructuring.
For TSM, the benefit is owning the infrastructure rather than relying on external FTX sponsorship deals. Their Avalanche Subnet gives them control over data, revenue, and prize distribution.
The risk, however, remains in how future ESL regulations, naming conventions, and activation restrictions evolve. Bitcoin payments, NBA crossover initiatives, and seasonal June events in Europe could also shape how teams like TSM navigate the digital age of esports.
What’s Next in Crypto for G2 Esports and TSM
Here’s a look at what’s likely coming next for G2 and TSM based on what they’ve already launched and the blockchain upgrades currently rolling out
G2 Esports: Deeper Membership, Easier Access, and Larger Drops
G2’s current setup revolves around the Samurai Army NFTs on Solana. These NFTs act as a pass to access “G2 Premium.” The process is already well-defined: buy SOL, set up a Phantom wallet, purchase a Samurai on Magic Eden, and verify it in the G2 app for full access.
G2 has publicly said they’re committed to making G2 Premium and the Samurai NFTs something fans genuinely want to be part of, so the likely next step is more perks and deeper community features, not a trading-focused token. Solana is also upgrading in ways that directly help G2. First, something called state compression makes it much cheaper to create a huge number of NFTs. It now costs around $100 to $200 to mint one million compressed NFTs.
That opens the door for G2 to send out airdrops, offer event passes, or let fans claim merch more often, without spending a ton. This helps keep the Premium experience fresh with new digital benefits.
Second, Solana is rolling out tools called Actions and Blinks. These let people complete blockchain transactions through a simple link, social post, or QR code. So instead of navigating to a separate site, fans can verify their Samurai NFT or claim a perk right from Twitter, Discord, or even a physical event via QR.
This fits perfectly with how G2 already handles app-based verification, and makes real-world activations easier with fewer steps. Expect G2 to use these features for smoother wallet setup, easier perk claims, and more engaging social campaigns.
Looking ahead, Solana’s performance will also improve as a new client called Firedancer rolls out through 2025. It’s meant to make the network faster and more stable. While this won’t directly change G2’s product overnight, it lowers the risk of slowdowns or issues as fan activity grows.
In short, the most likely next move for G2 is more benefits tied to the Samurai NFT, easier one-click actions across apps and social platforms, and mass NFT drops that reach more fans without complexity or high costs. It lines up with their clear focus on making Premium bigger and better.
TSM (Blitz): More Tournaments, Validator Access & Cross-Chain Integration
After walking away from the FTX partnership, TSM has taken a very infrastructure-focused path. Blitz now runs on a dedicated Avalanche Subnet using AVAX for gas, with a portion of fees burned on each transaction.
They also use Core for handling payments and digital assets, and plan to evolve this setup into an Elastic Subnet that lets the community help validate the network. Avalanche later confirmed that the Blitz Subnet officially went live in January 2024 to host tournaments.
This shows where things are headed: more gameplay, more on-chain systems, and eventually, more fans getting involved in running the network.
On the wallet side, Avalanche is making Core the go-to option. They’ve started phasing out the old Avalanche Wallet and are steering users toward Core Stake and Core Mobile/Desktop. That makes account setup, funding, and staking more streamlined. For Blitz, this means players won’t need to jump through hoops, Core is likely to become the standard wallet experience.
Behind the scenes, Avalanche is working on major network upgrades. One of the big plans, called Avalanche9000 or Etna, redefines Subnets as full Layer 1 chains and makes it easier for people to become validators.
Another upgrade, ACP-77, will allow validators to join a Subnet without first needing to validate the main Avalanche network. These changes will make it easier and cheaper for the community to help run the Blitz Subnet, which lines up with TSM’s stated goal of community validation.
Cross-chain connections are also improving. With tools like Teleporter and the Teleporter Token Bridge, tokens and smart contracts can now move between different Avalanche Subnets and Layer 1 chains without relying on third-party bridges.
For Blitz, this means things like tournament rewards or player credentials could move between different games or chains, helping expand what the ecosystem can do. As Avalanche keeps adding more games and Subnet activity, Blitz is already being highlighted as one of its main examples. This suggests we’ll see more branded tournaments, seasonal events, and cross-chain features from TSM as the technology matures.
TL;DR:
Conclusion
G2 Esports and TSM are using crypto in two very different ways. G2 is focused on fans. Their Samurai NFTs on Solana act like membership passes that give people access to perks, events, and special content. TSM is focused on tournaments. They built their own system on Avalanche so they can run competitions, handle payments, and involve the community without relying on outside partners.
G2 is using blockchain to make fan experiences deeper and more rewarding. TSM is using it to make their competitive setup stronger and more independent. These approaches highlight how crypto can support both the community side and the gameplay side of esports.
In the end, there isn’t one “right” way for teams to use crypto. What matters is how they use it to build stronger communities and create long-term value.
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FAQs
What role does crypto play in TSM's esports?
For TSM, crypto is more than a sponsorship deal. After the FTX partnership ended, the team built its own system on Avalanche to run tournaments, handle payments, and involve the community. It gives them more control over how their competitions and rewards work.
What are fan tokens, and how do they work in esports?
Fan tokens are digital passes that teams create for their supporters. People who hold them can vote in team polls, unlock special perks, or get access to exclusive content. They’re designed to give fans a more active role rather than just watching from the sidelines.
How are G2 Esports and TSM using blockchain to engage fans?
G2 uses NFTs as membership passes that give fans perks, access to events, and community features. TSM focuses on building its own tournament system on Avalanche, which lets them run competitions and reward players directly on-chain. Both are using blockchain to bring fans closer, but in different ways.
Why are esports teams adopting crypto and Web3 technologies?
Teams are using crypto to bring in new revenue, reach fans more directly, and reduce how much they rely on sponsors. It also makes things like payments, fan perks, and digital items faster and easier to manage across different countries.
How does G2’s crypto approach differ from TSM’s?
G2 is focused on fans. They use NFTs and memberships to give supporters perks and special access. TSM is focused on infrastructure. They’re building the systems that power their tournaments and payments. One is fan-first, the other is tech-first.
References
- Harvard International Review. “Esports, Part 1: What Are Esports?” Harvard International Review, hir.harvard.edu/esports-part-1-what-are-esports/.
- New York Times. “Esports Organization TSM Changes Name in $210 Million FTX Deal.” The New York Times, 4 June 2021, www.nytimes.com/2021/06/04/sports/esports-name-change-tsm-ftx.html.
- Reuters. “FTX Starts U.S. Bankruptcy Proceedings as CEO Exits.” Reuters, 11 Nov. 2022, www.reuters.com/business/ftx-start-us-bankruptcy-proceedings-ceo-exit-2022-11-11/.
- Avalaunch. “Research Report Part 1: Avalanche Subnets, the Journey So Far.” Avalaunch Blog, blog.avalaunch.app/research-report-part-1-avalanche-subnets-the-journey-so-far/.
- “The Basics about Cryptocurrency.” State University of New York at Oswego, https://www.oswego.edu/cts/basics-about-cryptocurrency
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