It was on the 14th of December, 2020, when Binance listed the fan tokens for Paris Saint-Germain (PSG) and Juventus (JUVE) on to its platform. Within the last 24 hours, each token saw a respective rise of 80% and 160%, boasting a daily volume spike of $300 million.
A Range of Rewards For Sport Token Holders
The sports tokens themselves were created by Chiliz and Socios.com, serving as utility tokens fans can purchase in order to allow for decision-making contributions for the club at large.
Through Socios’ application, users are capable of gaining club recognition and exclusive rewards through the use of these tokens. This makes them quite a valuable asset for any devoted football fan.
Smart Contracts In The Sporting Space
According to Binance Research, holders of the JUV token holders, given as an example, can earn various rewards through interacting with the Socios platform. These rewards range from anything between digital badges to matchday tickets and exclusive experience, as well as much more.
The researchers explained that these token holders are capable of voting on various “fan decision” polls for their team by way of smart contracts. Their team is, in turn, mandated by a contract to act on these poll results. Holders of these tokens can take part in a number of activities within the Socios platform, be it competitions, voting, chatting, quizzes, and earning rewards in the process.
Demand Doesn’t Need match Results To Stay High: Researchers
As a result of these interactions, the tokens themselves won’t swing on the whims of the team performance and matchday results alone, but it will doubtlessly heavily affect the token.
Indeed, the more the tokens hold overall utility, the greater demand will come from the fans. In the future, people would need compelling reasons to own these tokens, by way of better rewards, most likely. Through doing so, the demand for tokens would naturally increase.
The success these JUVE and PSG tokens have achieved is critical, mainly due to how this might very well set a precedent for any sports fan tokens developed in the future. Indeed, the massive rise in daily volume and the general craze surround it shows that there are a definitive demand and market for sports fan tokens.
Alexandre Dreyfus stands as the CEO of both Socios.com and Chiliz, and gave a public statement about the matter on the 22nd of December, 2020. He stated that these large increase in daily volumes coupled with high-profile exchange listing has served as a major step in the entertainment and sports industry at large.