Messi’s Transfer to PSG Includes Payment in Cryptocurrencies: Fan Tokens
‘Fan tokens‘ are a type of cryptocurrency that allows holders to vote on minor decisions related to their clubs.
The signing of the world soccer star by Paris St Germain includes a payment in cryptocurrencies from the French club (‘fan tokens’), in the last major endorsement received by the new digital assets.
‘Fan tokens‘ are a type of cryptocurrency that allows holders to vote on minor decisions related to their clubs. Among the clubs launching tokens this year are current Premier League champions Manchester City and AC Milan in Italy. Barcelona launched one last year.
PSG said the tokens were included in its “welcome package,” which the media estimates at 25 million-30 million euros (US $ 29 million-US $ 35 million). The club did not disclose the proportion of tokens in the package, but claimed that the amount is “significant.”
Tokens are increasingly seen as a source of new income and Socios.com – which provides the assets to PSG and other major clubs – says they have generated nearly $ 200 million for its partner clubs in 2021. As indicated, the PSG is already getting revenue from the Messi deal.
Like bitcoin and other digital currencies, ‘fan tokens’ can be traded on exchange platforms. They also share a tendency to sudden price swings with other cryptocurrencies, prompting some regulators to issue warnings to investors.
PSG said there was a large volume of exchange of their ‘fan tokens’ when it became known that Messi was coming to the club. Trading volumes topped $ 1.2 billion in the days leading up to the six-time Ballon d’Or winner, he said.
“We have been able to engage with a new global audience, creating a significant digital revenue stream,” said Marc Armstrong, PSG Director of Partnerships.