On December 14th, 2020, the Binance exchange-listed fan tokens of two prominent football clubs, Juventus (JUVE) and Paris Saint-Germain (PSG) on its platform. The tokens of each of these clubs had experienced a rise of 160% and 80% respectively in a matter of 24 hours, and a daily volume increase of around $300 million. Socios.com and Chiliz had created the sports token and their purpose was to serve as utility tokens that could be purchased by fans that would enable them to make decision-making contributions to the football club as a whole. Users can take advantage of the Socios application to gain exclusive rewards and club recognition by using these tokens.
This makes these tokens an extremely valuable asset for a fan of these renowned football clubs. Binance Research gave the example of JUV token holders and said that interacting with the Socios platform could enable them to earn different rewards. These rewards can range from anything between exclusive experience, matchday tickets, and digital badges, amongst others. According to the researchers, anyone who holds these tokens will be capable of giving their votes on some serious ‘fan decision’ polls for their respective football club through the use of smart contracts.
In turn, the football club is mandated to act on these poll results by a contract. Any fans who are smart enough to hold these tokens would be able to participate in various activities organized on the Socios platform, which include quizzes, chatting, voting and competitions, and will be able to earn rewards during this process. Due to these interactions, the tokens will not just swing on the results of the matchday or the performance of the team in general, but there is no doubt that these factors are going to have a big impact on them.
Furthermore, if the respective tokens hold a higher overall utility, it is understood that their demand will increase amongst fans. It is a given that people would want to have some compelling reasons for owning these tokens and the best way to accomplish this is by offering them better rewards. However, providing better rewards would mean that the demand for the respective football club tokens would also surge. The success achieved by the PSG and JUVE tokens is undoubtedly critical. After all, it has managed to set a precedent for any future developments of other tokens to cater to sports fans.
Indeed, the massive increase in the daily trading volume, along with the general craze surrounding the tokens indicate that there is certainly a definitive market and demand for these sports fan tokens. The chief executive at Chiliz and Socios.com, Alexandre Dreyfus made a public statement about the matter. On December 22nd, he said that these huge increases in the daily volume of these tokens, combined with the listing on a high-profile exchange has become a major step in the sports and entertainment industry, as a whole. Other football clubs could also jump on the bandwagon.