Paris Saint-Germain and Juventus fan tokens surged by 80% to 160% in the last 24 hours as their daily volume spiked to $300 million.
On Dec. 14, Binance listed PSG and JUVE, two utility sports fan tokens associated with the Paris Saint-German (PSG) and Juventus (JUV) football clubs. After the listing occurred both tokens surged by 80% to 160% in the past 24 hours.
Paris Saint-Germain fan token. Source: CoinMarketCap
Why are sports fan tokens surging?
Created by Socios.com and Chiliz, sports fan tokens are utility tokens that allow fans to receive a tokenized share of club decisions.
Through the Socios application, users can receive exclusive rewards and club recognition using the token.
Binance Research explained that JUV token holders, as an example, can interact with the Socios platform to earn various rewards. The rewards include matchday tickets, exclusive experiences, digital badges, and more. The researchers wrote:
JUV token holders can vote via smart contract on various ‘fan decision’ polls published by Juventus. Juventus is contractually bound to act according to poll results. Token holders can interact with the Socios platform (voting on polls, competing in contests and quizzes, connecting/chatting with like-minded users, etc.) and earn rewards.
Hence, the performance of sports fan tokens, such as PSG and JUV, are not necessarily tied to matchday results and team performance.
Rather, they are dependent on the overall utility of the tokens and the demand for them from fans. Ideally, if there are more compelling reasons to own the tokens, possibly through better rewards, the demand for the tokens could increase.
The early success of the fan tokens behind PSG and Juventus is critical because it would establish a precedent for future sports fan tokens.
The ongoing craze around sports fan tokens and the steep rise in daily volume indicate that there is a market and demand for them.
A major milestone for tokenizing the sports industry
On Dec. 22, following high-profile exchange listings and a large increase in daily volume, Alexandre Dreyfus, the CEO of Chiliz and Socios.com, said sports tokens took a major step forward in tokenizing the sports and entertainment industry.
The 24-hour volume of sports tokens, particularly from PSG and JUV, reached $300 million. For alternative tokens with market caps of less than $50 million, a $300 million daily volume is comparably high. Dreyfus wrote:
This is a seminal moment for us, the start of a new trend where the world’s leading sporting organisations will have their proprietary digital assets listed on the biggest global exchanges, generating visibility, liquidity and volume. This new trend will gather pace as more of the world’s biggest sporting properties have their Fan Tokens listed in the near future. We will be adding many more partners from sports and entertainment in the years to come who will become part of this digital transformation and our wider global fan engagement and monetization ecosystem.
Fan tokens behind Paris Saint-German (PSG) and Juventus (JUV) surged 160% and 80% respectively in the past 24 hours. The rally of the two tokens came after major exchange listings and a spike in daily volume.