The fan token market has grown in value this year, rising by around $ 157 million in terms of total market capitalization since June..
According to data from the main fan token website, FanMarketCap, the market capitalization of all fan tokens is estimated at just over $ 417 million at the time of writing this article. This is an increase of almost 60.4% over the global value of $ 260 million registered in mid-June 2021, as previously reported by Cointelegraph.
The daily trading volume of the fan token market amounts to 270.2 million dollars at press time..
According to FanTokenStats, some of the top-rated fan tokens include Paris Saint-Germain (PSG) and Manchester Citand (CITY) issued by Socios, the main fan token provider, and based on the Chiliz blockchain infrastructure. While PSG’s market capitalization is valued at just over $ 49 million, the CITY’s is at $ 38 million.
Binance, the world’s largest cryptocurrency exchange, is also a major player in fan tokens, after launching his own fan token platform in October 2021. The Lazio Fan Token (LAZIO), which runs on Binance’s token launch pad, Binance Launchpad, is among the largest fan tokens. with a market capitalization of approximately $ 51 million, according to FanTokenStats.
Alexandre Dreyfus, the founder and CEO of Socios y Chiliz, told Cointelegraph that all of the fan tokens in the Socios y Chiliz fan token ecosystem have sold for $ 250 million so far. Predicted that the market for fan tokens and social tokens will increase to 10 billion dollars in the next five years.
Fan tokens are a form of digital currency that provide holders with access to a number of benefits related to fan membership.such as voting on club decisions, special product design, rewards, and other experiences of fan engagement in sports and music clubs.
Dreyfus highlighted that fan tokens are not cryptocurrencies, but digital assets: “You cannot spend fan tokens to buy something, you can own fan tokens to get fan benefits.” Still, he noted that fan token use cases are different for fans and traders. “The fans will hold, the traders will trade,” Dreyfus said.
According to the CEO, sources such as CoinMarketCap (CMC) and CoinGecko do not correctly reflect the initial price of the fan tokens issued by Partners, which is usually about $ 2 per token. For example, CITY had a starting price of $ 2 per token instead of $ 10, which is what CMC and CoinGecko indicate.
“You can’t see it on CoinMarketCap,” Dreyfus noted, adding that Sources like CMC and CoinGecko do not get the offer price of the fan tokens, they only capture the listing price. “Fan tokens are first sold in advance at a fixed price during a flash sale before being listed,” he added.
Keep reading: