One of the most surprising adoption tracks of blockchain technology and cryptocurrency is within the sports industry.
For a long time, fans were only spectators watching and rooting for their favorite teams in front of the TV or in a pub as they play a game with another club. However, crypto has offered teams a chance to facilitate active engagement and real interaction between their fans. At the same time, supporters can have an impact on the decisions over various areas and activities of sports clubs.
All this is achieved by fan tokens that empower holders with certain rights and benefits. At AAX Exchange, we are excited about these innovative projects and among our users we have noticed a great demand for this. As such, on AAX PSG is among the sports-tokens that we have recently listed.
And today, we will explore the Paris Saint-Germain Fan Token (PSG), the official cryptocurrency of France’s most successful football club.
What Is the Paris Saint-Germain Fan Token (PSG)?
Launched in January 2020, the Paris Saint-Germain Fan Token (PSG) is a utility token that represents a tokenized share of influence on club decisions as well as various rights, rewards, and benefits for holders. Examples include:
- Choosing an inspirational message for PSG’s captain’s armband by using fan tokens to vote
- Access unique experiences, such as watching a match from the VIP area or entering the backstage of the football team’s stadium
- Receive exclusive discounts on club merchandise
Like most fan tokens, PSG was issued as part of a Fan Token Offering (FTO), and operates on the Socios sidechain and fan engagement platform of the Chiliz blockchain.
In a nutshell, Chiliz seeks to revolutionize how interaction works between fans and clubs in the sports, esports, and entertainment industries by incentivizing and monetizing engagement via tokenization.
Running as a permissioned, Proof-of-Authority (PoA) sidechain on Ethereum, Socios is the ultimate platform in the Chiliz ecosystem for fan engagement and interaction with teams.
Powered by smart contracts, Socios leverages the Ethereum blockchain and its own crowd-control engine to offer fans the chance to vote on transparent, manipulation-free, and publicly auditable polls.
Interestingly, clubs can launch two forms of polls: binding and non-binding. While they are required to fulfill fans’ decisions for the prior, they can utilize the latter to get valuable feedback on various team-related topics from fans.
Available in the form of a mobile (Android, iOS) and beta web-based app – in addition to team-related activities like voting –, Socios offers users the ability to trade fan tokens, receive badges and earn rewards for active participation, along with other activities like match predictions and contests.
What Should I Know About PSG’s Tokenomics and Price Movements?
As we have already visited the essentials about the fan token, let’s take a look at PSG’s tokenomics.
As of July 15, the Paris Saint-Germain Fan Token ranks as the third top cryptocurrency, just behind Barcelona’s BAR Galatasaray’s GAL, among all fan tokens with a nearly $24 million market cap and an over $21.5 million trading volume in the last 24 hours.
Available on Chiliz and also as a BEP-20 token on the Binance Smart Chain, PSG has a fixed supply of 19.89 million tokens, from which nearly 1.29 million coins are currently in circulation.
During the launch, Paris Saint-Germain distributed 1,2888,396 PSG to fans through various channels and methods, including:
- Fan Token Offering on Socios.com at the price of 2 EUR ($2.37)
- Staking on Binance Launchpool
- Rewards for MyParis subscribers
- A promotion in which fans could get free fan tokens during Pokémon Go-like Token Hunts via an augmented reality (AR) solution for smartphones
Interestingly, Socios and PSG regularly burn fan tokens during various events, such as after the club’s match with Marseille on January 13, where a total of 40,000 coins were destroyed based on the game’s end score (10,000 tokens were burned for every scored goal and an additional 20,000 for winning). And this is the exact reason why the maximum supply was lowered from the initial 20 million to 19.89 million digital assets.
Apart from the circulating supply, the club owns the remaining 18.6 million fan tokens, which are released gradually during a period of eight years (2,5 million PSG will be unlocked every year).
It’s important to note that, like all other fan tokens on Chiliz, PSG features an initial value-peg to the fan engagement platform’s native CHZ token, which the team determined before launching the FTO on Socios.
For that reason, in addition to the token’s supply and the demand from Paris Saint-Germain fans to engage with their clubs and participate in crowd-sourced decisions, CHZ’s price performance and Chiliz’s growth are factors that may impact PSG’s value.
The Paris Saint-Germain Fan Token’s main utilities include:
- Voting on polls published by Paris Saint-Germain to decide on various matters concerning the football club by holding fan tokens (users don’t have to spend them to participate in the decision-making process)
- Distributing rewards to fans for participating in various contests and quizzes
- Offering holders the opportunity to chat with other fans via dedicated groups and forums on Socios
- Holders can get benefits, bonuses, and cashback rewards as well as win prizes (e.g., match tickets, unique experiences) by holding a certain number of fan tokens and actively engaging in various club-related activities
In the future, Chiliz and Socios are planning to introduce additional platform features, which will allow PSG holders to:
- Earn convertible reward points for active engagement and participation in club decision-making processes
- Spending PSG to purchase VIP products and services
- PSG staking, which allows users to receive non-fungible token (NFT) rewards
Now that we have explored PSG’s tokenomics let’s see how the cryptocurrency’s price has been performing since its launch.
Starting at the initial price of $2.37 (2 EUR), the Paris Saint-Germain Fan Token quickly entered into a bull run, in which it surged up to $29.96 by December 21, 2020, before a correctional period commenced.
This year, the cryptocurrency’s value experienced an even greater uptrend, which led to a rapid increase from January 1’s $12.82 to as high as $56.04 on April 26 before the crypto market crash resulted in a price fall for PSG.
Despite that, the digital asset is currently trading at $18.71 (July 15), representing a 46% year-to-date (YTD) and a 690% all-time ROI, respectively.
PSG: Empowering Fans With Tokenized Share of Influence and Exclusive Benefits
It’s no question that Chiliz has made quite some progress in enhancing interaction between teams and fans within the sports industry.
The crypto project’s fan tokens have been widely popular among European football clubs, with increasing adoption at esports, fighting, motorsport, cricket, and basketball teams.
In addition to Paris Saint-Germain, prominent clubs, leagues, and teams like Barcelona, Juventus, Manchester City, the UFC, Alfa Romeo Racing, and the Philadelphia 76ers have all issued their fan tokens on top of Socios.
As millions of fans are rooting for their favorite sports teams worldwide, Socios’ tokenization model empowers them with real influence over club decisions while offering exclusive rewards in exchange for active participation.
While a coin like the Paris Saint-Germain Fan Token increases the loyalty of holders, clubs can leverage Socios polls to gain valuable insights into what their supporters are thinking on various issues.
At the same time, as fan tokens are issued and distributed by teams, clubs like PSG can access an alternative source of revenue, which can facilitate increased growth or offer some financial help during troubled times.
It really surprised the crypto space that such large and popular teams like PSG, Barcelona, and Juventus have joined Socios to issue their fan tokens. For that reason, it’s safe to assume that this form of fan engagement will continue to become more popular, with even more teams issuing their tokens in the near future.
Suppose this model achieves success for clubs, and Socios manages to maintain this growth rate. In that case, fan tokens will likely become the standard in the sports industry, which will come in handy for the crypto space as it facilitates the adoption of digital assets.