Home News Fan token market cap surged over 60% since June

Fan token market cap surged over 60% since June

5721
0

Since June, the overall market capitalization of the fan token market has increased by roughly $157 million.

The market cap of all fan tokens is believed to be somewhat more than $417 million at the time of publishing, according to data from popular fan token website FanMarketCap. This represents an almost 60.4 percent increase over the $260 million total value announced in mid-June 2021.

At press time, the daily trading volume in the fan token market was $270.2 million.

Paris Saint-Germain (PSG) and Manchester City (CITY), both issued by major fan token provider Socios and based on the Chiliz blockchain architecture, are two of the most valuable fan tokens, according to FanTokenStats. CITY’s market capitalization is $38 million, whereas PSG’s is slightly over $49 million.

Binance, the world’s largest cryptocurrency exchange, is also a significant player in the fan token space, launching its own platform in October 2021. According to FanTokenStats, the Lazio Fan Token (LAZIO) is one of the most popular fan tokens on Binance’s token launch platform Binance Launchpad, with a market worth of around $51 million.

Alexandre Dreyfus, the creator and CEO of Socios and Chiliz, said that the whole fan token ecosystem of Socios and Chiliz has sold for $250 million so far. In the next five years, he expects the market for fan and social tokens to grow to $10 billion.

Fan tokens are digital assets not cryptocurrency

Fan tokens are a type of digital currency that entitles holders to a variety of fan-related membership benefits. Such as voting on club decisions, item designs, incentives, and other fan engagement experiences inside sports and music fan clubs.

“You cannot use fan tokens to buy something. But you can hold fan tokens to gain fan benefits”, Dreyfus said. Emphasising that fan tokens are digital assets, not cryptocurrency. Fans and traders have distinct uses for fan tokens, according to him. Dreyfus said, “Fans will hold, traders will trade”.

Sources such as CoinMarketCap (CMC) and CoinGecko, according to the CEO, do not accurately reflect the initial price of Socios-issued fan tokens. Which are typically around $2 per token. As a result, according to CMC and CoinGecko, CITY was initially valued at $2 per token rather than $10.

“It’s not on CoinMarketCap”, Dreyfus explained. Noting that sites like CMC and CoinGecko only capture the listing price and not the fan token offering price. “Before advertised, fan tokens are pre-sold at a fixed price during a flash sale,” he explained.

Previous articleBitcoin Core developer Samuel Dobson decides it is ‘time to go’
Next articleSouth Africa’s financial regulator plans to introduce framework aimed at protecting vulnerable crypto investors