On December 14, Binance listed PSG and JUVE, two sports fans associated with Paris Saint-German (PSG) and Juventus (JUV) football clubs. According to the listing, both tokens rose 80% to 160% in the past 24 hours.
Paris Saint-Germain Fan Token. Source: CoinMarketCap
Why are sports fan tokens rising?
Sports fan tokens were created by Socios.com and Chiliz and are utility tokens that fans can use to get a symbolized share of club decisions.
Through the Socios application, users can use the token to receive exclusive rewards and club recognitions.
Binance Research stated that JUV token holders, for example, can interact with the Socios platform to receive various rewards. The rewards include game day tickets, exclusive experiences, digital badges and more. The researchers wrote:
“Holders of JUV tokens can vote on various polls published by Juventus on fan decisions via a smart contract. Juventus is contractually obliged to act in accordance with the survey results. Token holders can interact with the Socios platform (vote on polls, take part in contests and quizzes, connect / chat with like-minded users, etc.) and earn rewards. “
Hence, the performance of sports fan tokens like PSG and JUV is not necessarily tied to match day results and team performance.
Rather, they are dependent on the overall utility of the tokens and the fans’ demand for them. Ideally, if there are more compelling reasons to own the tokens, the demand for the tokens could increase, possibly through better rewards.
The early success of the fan tokens behind PSG and Juventus is critical as it would set a precedent for future sports fan tokens.
The ongoing craze for sports fan tokens and the sharp increase in daily volume suggest that there is a market and demand for them.
An important milestone for the tokenization of the sports industry
Alexandre Dreyfus, CEO of Chiliz and Socios.com, said on Dec. 22, after high profile listings and a sharp surge in daily volume, that sports tokens had taken a major step towards tokenizing the sports and entertainment industries.
The 24-hour volume of sports brands, particularly PSG and JUV, reached $ 300 million. For alternative tokens with market capitalizations of less than $ 50 million, a daily volume of $ 300 million is comparatively high. Dreyfus wrote:
“This is a pivotal moment for us, the beginning of a new trend where the world’s leading sports organizations list their own digital assets on the largest global exchanges to create visibility, liquidity and volume. This new trend is set to gain momentum as more of the world’s largest sporting properties have their fan tokens in the near future. We will be adding many more sports and entertainment partners in the coming years to become part of this digital transformation and our broader global fan engagement and monetization ecosystem. “
The fan tokens behind Paris Saint-German (PSG) and Juventus (JUV) rose 160% and 80%, respectively, over the past 24 hours. The rally of the two tokens came after large listings and an increase in daily volume.