Fan tokens take on colors
In an atmosphere capitulation in the cryptocurrency marketexacerbated by the Terra (LUNA) affair as well as the geopolitical and macro-economic context, green curves are becoming rare and seeing some of them is a real relief.
At the start of the week, sports enthusiasts were able to breathe a little when they saw their fan tokens lead a bullish rally and appreciate by several tens of percent. As an example, the Paris Saint-Germain Fan Token (PSG) climbed almost 150% since Monday evening, going from 5 dollars to more than 12 dollars, before stabilizing around 10 dollars.
Performance of the main fan tokens – as of Thursday, May 19, 07:45
In a nutshell, fan tokens are digital tokens designed to monetize the fervor of sports fans. They were invented and democratized by the company Socios.comwhich has established partnerships with big names in world sport : the Alpine team in Formula 1, Paris Saint-Germain, FC Barcelona, and many others.
👉 To understand everything — Fan tokens: cryptocurrencies designed for the world of sport
Chiliz announces phase 2 of its testnet
One of the main reasons for this sudden rise in fan token prices would be the recent announcements from Chiliz (CHZ), the protocol on which Socios.com is based. The CHZ token is the real fuel for the platform, since it serves as currency sports enthusiasts wishing to acquire fan tokens.
This Tuesday, May 17, Chiliz revealed the launch of Jalapeño, the second phase of his testnet called “Scoville”. This is more broadly part of the transition from the platform to its mainnet, Chiliz Chain 2.0scheduled for the end of 2022.
𝐒𝐜𝐨𝐯𝐢𝐥𝐥𝐞 𝐓𝐞𝐬𝐭𝐧𝐞𝐭 – JALAPENO starts! 🌶️
✅ DEX: PepperSwap
✅ Fan Token Test Surveys
⚡️ $CHZ pic.twitter.com/eqXPk1HeIT
— Chiliz ($CHZ) – Powering Socios.com ⚡ (@Chiliz) May 17, 2022
Among the main novelties that will be tested during this second phase, we note first of all the launch of PepperSwap, which will be the first decentralized exchange in the ecosystem. Moreover, and this is most certainly what created the enthusiasm, the possibility of participate in polls and governance votes clubs by holding fan tokens.
Indeed, in addition to access to unique and exclusive experiences, the true value proposition of Socios.com and Chiliz lies in the ability to make sports fans interact with their favorite clubsparticularly by participating in decision-making.
👉 Going Deeper — Chiliz (CHZ), the Cryptocurrency Powering Socios.com Fan Tokens
Good news for fan tokens
Along with these exciting advances in the Chiliz ecosystem came some good news specific to each fan token. This Wednesday, May 18, the BitPanda exchange platform announced the listing of a handful of themincluding that of Paris Saint-Germain.
In addition, Chiliz uses a rather special mechanism token burnmaking it possible to destroy part of the fan tokens in circulation and thus to put upward pressure on them. Nicknamed “Head2Head”, or literally face-to-face in French, this mechanism is based on the actual results of confrontations between two clubs.
#Head2Head Burn 🔥
Fan Tokens will be burned for every goal scored during @juventusfc vs. @inter at 21:00 CEST today 👏
🔥 1x $JUV, $INTER goal = 2,000 Fan Tokens
🔥 1x $JUV, $INTER win = 4,000 Fan Tokens
⚡ $CHZ pic.twitter.com/c4ugx2xM8B
— Chiliz ($CHZ) – Powering Socios.com ⚡ (@Chiliz) May 11, 2022
For example, on May 11, Inter Milan faced Juventus of Turin for the Italian Cup final. As part of this meeting, Chiliz introduced the burn process following: 2000 fan tokens would be destroyed with each goal and 4000 for the winning team.
Quite logically, this mechanism rewards the best performing teams and consequently, the supporters who have invested in their fan tokens.
👉 On the same theme — The Pau basketball club sells 40% of its capital in the form of tokens, a world first