The French club PSG, is one of several major football teams to have launched its own fan token, through Socios.com, which is a Chiliz (CHZ) blockchain-built project.
The fan tokens, which are a type of “social token” or “community token”, are deemed valuable because they engage holders with governance rights in the clubs’ decision-making process. It’s potentially powerful stuff and a good reason for hardcore fans to “HODL” their tokens. The more tokens they have, the more say they get in the future of their club.
The holders of the fan tokens invest in them and utilise them to vote on minor club decisions. These tokens, like any other cryptocurrency, can be exchanged on exchanges and are susceptible to the same volatility that already exists in crypto assets. Fans’ tokens, as well as their popularity and pricing, are frequently unrelated to on-field performance. Messi, 34, agreed to a two-year deal with PSG, with the option to extend it for a third year. Socios.com, PSG’s club fan token provider, provided the tokens included in his “welcome package,” aka his sign-on charge. While the club would not confirm the final financial deal’s exact value or what was received.
“The excitement around the club’s latest signings sparked a massive increase of interest in $PSG Fan Tokens, with trading volumes reaching $1.2 billion in the days leading up to the move,” the club claimed.
Manchester City, the English Premier League champions, as well as PSG and other clubs in the league, have all introduced tokens. Following the announcement of the relocation, PSG observed an increase in trading of its crypto tokens.
The PSG token has a market cap of almost $120 million, with nearly 3 million of the total 20 million tokens circulating in trades.
The PSG token has had some magic spray and a bit of a hug since then, though, and appears to be making a late surge once again into the final minutes of injury time this week, currently running around for US$42.34.