Paris Saint-Germain and Juventus fan tokens rally 80% to 160% after listing

Published at: Dec. 22, 2020

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.

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.

Tags
Markets
Altcoin
Cryptocurrency Exchange
Cryptocurrencies
Related Posts
Altcoins notch triple-digit gains as Bitcoin price pushes toward $60K
If this past weekend is any indication of the current bull market cycle, then an altcoin season may be well underway. Similar to previous cycles, after Bitcoin (BTC) makes a significant run-up in price and then enters a consolidation period, funds begin to migrate into large and small market cap altcoins. Data from Cointelegraph Markets and TradingView shows that while Bitcoin traded in a range between $57,000 and $60,200 over the past week, multiple altcoins saw double-digit gains as exchange listings and protocol developments brought a new wave of enthusiasm and trading volume for select projects. Tron ecosystem leads the …
Blockchain / April 6, 2021
Price analysis 3/22: BTC, ETH, BNB, ADA, DOT, XRP, UNI, LTC, LINK, THETA
The Turkish lira lost 15% of its value and dipped close to its all-time low after Turkey's President Erdogan fired central bank governor Naci Agbal. This resulted in a massive spike in Bitcoin (BTC) searches in Turkey as investors sought to protect their wealth from devaluation. This is just another example that shows how investors may be treating Bitcoin as a possible substitute for fiat currencies. In other news, United States Federal Reserve chairman Jerome Powell has a different view. While speaking at an event hosted by the Bank for International Settlements, Powell said that Bitcoin is more of a …
Bitcoin / March 22, 2021
CRO price hits new high after Crypto.com wins Los Angeles' Staples Center naming rights
Crypto.com's native cryptocurrency CRO hit an all-time high of $0.593 on Nov. 18 after the company won the naming rights to Los Angeles's Staples Center. The cryptocurrency trading platform announced Tuesday night that it had paid $700 million to the Anschutz Entertainment Group (AEG) to rename Staples Center to Crypto.com for the next twenty years. In doing so, it gained links with the downtown arena's native sports franchises, including NBA's Los Angeles Lakers, Clippers, and National Hockey League's Kings franchise. The deal should boost Crypto.com's public awareness, and this prompted traders to raise their bids for CRO, an intermediary settlement …
Markets / Nov. 18, 2021
3 reasons why Keep3rV1 (KP3R) price hit a new all-time high this month
Keep3rV1 (KP3R) was one of the few altcoins that emerged unscathed from this week’s bearish turn in the crypto market. While many digital assets plunged into the red following the lead of Bitcoin (BTC), which recoiled after recording a new all-time high last week, KP3R added 31.60% against the dollar and 44.17% against BTC between Nov. 12 and Nov. 19. Let's investigate what drove the splendid performance and what factors made the altcoin stand out in the face of the from the bleak dynamics of the wider market? Founder’s magic Much of the momentum underpinning KP3R’s explosive price movement throughout …
Markets / Nov. 19, 2021
Price analysis 9/2: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB
Nonfarm payrolls rose by 315,000 jobs in August, down from the July increase of 526,000 jobs. The report was just below the Dow Jones estimate of 318,000 jobs and the slowest monthly gain since April 2021. The S&P 500 rose in response to the report, but later erased its gains, indicating that bears continue to sell on rallies. That may be because the U.S. dollar index (DXY), which had retreated from its Sept.1 20-year high, recovered part of its losses. The bears will have to pull the DXY lower to boost prices of stocks and the cryptocurrency markets as both …
Bitcoin / Sept. 2, 2022