Chiliz and the monetisation of fandom
Chiliz markets itself as a blockchain sports platform which can help you tokenise the relationship between sports clubs and their fans. Through the socios.com platform, clubs sell their fan tokens using the CHZ cryptocurrency. These FTO's have thus far been extremely successful with investors being rewarded generously.
As of today there are 20 clubs that have taken this leap including : FC Barcelona, Galatasaray, Paris Saint-Germain, Juventus, AC Milan, Atletico Madrid, AS Roma. OG, Trabzonspor, Natus Vincere, Sint-Truidense, Team Heretics, Young Boys, Team Alliance, Club Atletico Independiente, Apollon Limassol, Istanbul Basaksehir, Novara Calcio, Socios United and Universidad de Chile.
In total these tokens have a whooping ~ 430 million dollar market cap.
These tokens have proliferated at an astounding rate with many of them finding their way as far as Binance Launchpool. In essence these tokens can be seen as shares in a gamified experience provided by each club. They allow you to vote on issues presented by the club and even provide holders with opportunities to win things like signed shirts.
As well as being a source of income for clubs, this project allows fans to feel connected with their team in an innovative way which I would argue is in the wrong direction. In the past fans bought everything clubs and their sponsors would offer them from football gear all the way to customised food and beverage. This fostered a connection which made fans believe that they were supporting their club and becoming a bigger part of it. Giant football fan clubs across the world compete in showing how devoted they are to their team with supersized flags to themed bars.
This next step in creating tokens to indicate your support for your team revolutionises the ability to monetise this sacred relationship.
Ultimately, I believe that by milking every drop out of the beautiful game for the sake of money, the future of football, and every sport for that matter, is extremely grim. Fan tokens are in full swing in Europe and there's absolutely no sign of stopping there. The Chiliz team are planning a 50 million dollar investment to get their foot in the door of the US sports industry. Basketball, baseball, American football and every other popular sport will certainly be tokenised very very soon.
What are your thoughts on fan tokens? Are you a fan or are you also sceptic?