Token prices for football clubs Paris Saint-Germain and Juventus spike 160% and 80% respectively in 24 hours following their 21 December listing on Binance, reaching a daily volume of $300M.
The tokens, powered by Socios and Chiliz, are Ethereum-based. Ownership of JUV and PSG enables fans to engage with other fans via the Socios app. Other perks include voting rights in club decisions, rewards, and easier access to tickets.Binance researchers had this to say about the Juventus Fan Token:
“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.”
This being the case, token prices are not linked to the performance of the sports team. They can, however, be determined by utility and demand.Performance Analysis for JUV and PSGAccording to Socios.com, the tokens went live on three major exchanges, Binance at 07:00 CET, Paribu at 10:00 and UpBit at 13:00.
The Future of Tokens in SportsThis initial success of the JUV and PSG tokens could well be the beginning of a bright future for tokenisation in sport. Currently, more than 18 major sports organisations have teamed up with Chiliz. These include:
Chiliz and Socios.com CEO Alexandre Dreyfus had this to say after the remarkable performance of the two tokens:
“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.”
The current hype around such tokens and the constant steady climb in daily volume is indicative of an eager market and demand.