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Current Affairs

Fan tokens cryptocurrency

Date: 14 August 2021 Tags: Sports

Issue

Lionel Messi will be paid fan token cryptocurrency along with his regular salary when he joins French football club Paris Saint-Germain.

 

Background

Lionel Messi ended his long association with his boyhood club FC Barcelona when he moved to Paris-based PSG.

 

Details

  • Fan token is the latest cryptocurrency that is being promoted currently. It is a digital-only asset in form of Non-Fungible Token.

  • They are highly volatile assets like bitcoins and their value can decrease or increase drastically overnight.

  • The club fans can use their real money to buy fan token. They will get exclusive access to club contents and also some augmented reality games. The owners of these coins can also vote in some minor club decisions.

  • A cryptocurrency platform called as socio was used to create the fan tokens. They are marketed as a means to become a true club influencer.

 

Voting decisions

Some of the voting regarding the club includes kit design, pre-season tour destination, music for goal scoring etc. More the fan tokens, more is the voting power.

 

Clubs using the tokens

  • Arsenal, Aston Villa, Manchester City, Leeds, Barcelona, PSG, Juventus, Inter Milan and Portuguese National team have these tokens.

  • Fan tokens were significant part of Messi’s welcome package to the club. Recently David Barral became the first player to be bought using cryptocurrency.

 

Effects on price

The arrival of Messi has increased the value of PSG’s fan token. It has more than doubled its value. The volume of sale also increased just before his arrival.