Messi is being paid in PSG fan tokens – What is it about?

By October 13, 20214 minute read
Messi is being paid in PSG fan tokens - What is it about?

The PSG Fan Token is a crypto that is directly linked to the Paris Saint-Germain football club.

Lionel Messi’s signing fee at Paris Saint-Germain includes some of the French club’s cryptocurrency “fan tokens,” marking the latest high-profile endorsement of new digital assets.

What exactly are fan tokens?

Fan tokens are similar to other cryptocurrencies in many ways. Like Bitcoin and other digital currencies, fan tokens can be highly volatile assets, with their value fluctuating dramatically from day to day.

To gain access to exclusive content and augmented reality games, fans can purchase crypto tokens with real money. Fans who own fan tokens can vote on mostly minor decisions involving their clubs, among other benefits. Socios, a cryptocurrency platform, created these fan tokens. “Fan tokens give you the status of a true influencer,” according to the Socios website.

What is the PSG fan token, and how does it work?

Sports fan tokens have been popping up all over lately, attempting to capitalize on the desires of dedicated fans willing to pay to express their thoughts and ideas about their favourite team.

Fans have always been described as the soul of football in an era of rampant commercialization of nearly all professional sports. It is simply a fact that sports teams’ ambitions cannot be sustained in the absence of supporters willing to contribute financially to the team’s success. Every football season, football clubs generate and spend hundreds of millions of dollars; however, the modernization of fan culture, as well as the stadium-emptying Covid pandemic, have forced sports teams to think outside the box and, in particular,, draw their young fans in with innovative new rewards.

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Like other fan tokens, the main goal of the PSG fan token project is to encourage direct interaction and participation with their team while also giving the ordinary public the ability to influence club activities and decisions. Fan tokens serve as a conduit between club management, players, and fans all over the world.

Fan tokens, unlike NFTs, are fungible, meaning they can be exchanged for exclusive merchandise or fan experiences in the same way that fiat or cash can.

The PCG token was launched in 2020 by Socios, the leading platform for fan tokens. Users can participate in club governance by purchasing the fan token on the Socios platform.

The Paris Saint-Germain was the first sports team to partner with Socios, which is powered by the Chiliz blockchain. Chiliz (CHZ) is an ERC-20 token on the Ethereum blockchain that fans must purchase on cryptocurrency exchanges in order to obtain the PSG fan token on the Socios platform. 

The PSG fan token is a secure and reliable utility token that operates on the Chiliz Network, which is an Ethereum-based proof-of-authority sidechain.

Socios generates a finite amount of $PSG, which users can trade to redeem football-related offers. The more users interact on the platform, the more points they earn toward prizes such as VIP tickets and the chance to hunt for more coins. 

Because PSG fan tokens are limited, they are a valuable commodity for users. A total of 20,000,000 tokens will be minted, with 2,500,000 being released each year for the next eight years. After its Fan Token Offering (FTO), the club distributed 1,288,396 tokens, with the remainder held by the club.

What makes $PSG so special?

The PSG fan token will benefit both players and fans, as it has voting rights, unlike other cryptocurrencies. PSG isn’t necessarily tied to the price of Ethereum or Bitcoin, but it does gain or lose value based on how much fans value the ability to participate. Holders of tokens have access to the club’s NFT, digital badges, and VIP matchday tickets.

It’s also possible to stake $PSG for additional rewards, such as Gamified NFTs for blockchain-based games and Pure Collectibles, which are rare aesthetic NFTs. Token holders will be able to use $PSG to purchase club goods and services in the future.

The club intends to take the token to the next level by running promotions for token holders to win signed shirts from players, hosting crypto events with its players as influencers, and launching a comprehensive marketing campaign in Latin America and Asia. All of these goals will be achieved if fans are involved in decision-making.

The following are the key decisions to which token holders are entitled:

  • For fan clubs, the captain has always been an inspiration. Fans frequently communicate with the captain about the club’s progress. In recent years, the captain’s armband has been used to convey inspirational messages to fans or to support specific messages such as “Black Lives Matter,” etc. Fans can now vote on the inscription on the captain’s band using the fan token.
  • The second major use of fan tokens is to vote for awards such as the goal of the year, player of the year, and young player of the year. The fans’ message will be heard loud and clear when the votes are announced on the award night.

What’s all the fuss about the PSG fan token?

Football has an unrivalled fan culture in international sports. Paris Saint-Germain is a club that believes in marketing through sensation and entertainment, so $PSG has significantly benefited from the club’s activities.

The signing of Lionel Messi, arguably the best player in the world, on a free transfer from FC Barcelona sparked a frenzy among the club’s ardent fans. The price of the token had doubled to $55.31 before the transfer was completed earlier this summer.

Because of its star players, $PSG has taken the fan token market by storm, and adding Messi to the mix was the icing on the cake.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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