Fan token market cap surged over 60% since June: Data
The fan token market has been rising in worth this 12 months, surging round $157 million by way of whole market capitalization since June.
According to data from main fan token web site FanMarketCap, the market cap of all fan tokens is estimated to quantity to barely over $417 million on the time of writing. This is nearly 60.4% up from the general worth of $260 million recorded in mid-June 2021, as Cointelegraph beforehand reported.
The fan token market’s day by day buying and selling quantity quantities to $270.2 million at publishing time.
According to FanTokenStats, a number of the most-valued fan tokens embrace Paris Saint-Germain (PSG) and Manchester City (CITY) issued by main fan token supplier Socios and based mostly on the Chiliz blockchain infrastructure. While PSG’s market capitalization is valued at simply over $49 million, CITY’s market cap is at $38 million.
Binance, the world’s largest cryptocurrency exchange, can be a serious fan token participant, launching its personal fan token platform in October 2021. Running on Binance’s token launch platform Binance Launchpad, the Lazio Fan Token (LAZIO) is among the many largest fan tokens with a market cap of roughly $51 million, in keeping with FanTokenStats.
Socios and Chiliz founder and CEO Alexandre Dreyfus instructed Cointelegraph that each one fan tokens throughout Socios and Chiliz’s fan token ecosystem have bought for $250 million thus far. He predicted that the market dimension of fan tokens and social tokens will surge as much as $10 billion within the subsequent 5 years.
Fan tokens are a type of digital currency offering holders with entry to a lot of fan-related membership perks together with voting on membership selections, merchandise designs, rewards in addition to different fan engagement experiences inside sports activities golf equipment and music fan golf equipment.
Dreyfus emphasised that fan tokens are usually not cryptocurrencies however somewhat digital property: “You cannot spend fan tokens to buy something, you can own fan tokens to get fan benefits.” He nonetheless famous that fan tokens’ use instances are completely different for followers and merchants. “Fans will hold, traders will trade,” Dreyfus stated.
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According to the CEO, sources like CoinMarketCap (CMC) and CoinGecko don’t appropriately mirror the preliminary worth of Socios-issued fan tokens, which is normally round $2 per token. As such, CITY was initially priced at $2 per token as a substitute of $10, which is in keeping with CMC and CoinGecko.
“You can’t see it on CoinMarketCap,” Dreyfus famous, including that sources like CMC and CoinGecko don’t get fan token providing worth however somewhat seize the itemizing worth solely. “Fan tokens are first pre-sold at fixed price during a flash sale before being listed,” he added.