What is the Paris Saint Germain fan token? Your ultimate guide
It’s good enough for Lionel Messi, but is it good enough for you?
- What is the Paris Saint Germain Fan Token?
- How does PSG Fan Token work?
- Messi’s move to PSG
- PSG Fan Token review
- PSG Fan Token price
Buying the latest shirt, cheering on the team, and watching every game have been ways to support your favourite football club for decades. But blockchain technology is creating a new type of fan – one that can influence the team’s decisions.
Paris Saint-Germain was one of the first to do it with the launch of its fan token last year. The Paris Saint Germain (PSG) Fan Token allows users to vote on various decisions including slogans, designs, and goal of the season. It even rewards holders with personal phone calls from the players.
However, there is much more to the token than just that. Are you wondering what is PSG fan token? Read on to have everything you need to know about becoming a crypto superfan and using the PSG Fan Token explained.
What is the Paris Saint Germain Fan Token?
Fan tokens are a relatively new asset that behave similarly to other cryptocurrencies – they can be traded on exchanges and they are prone to high volatility. But these assets are a type of utility token that allow fans to gain access to exclusive content and have a say in its future.
Paris Saint-Germain were one of the first football clubs to launch its own token. Owning the token lets fans influence the decisions of the football club. It also gives access to exclusive content and rewards. This blockchain technology is paving the way for a new type of sports superfan.
The football club announced a partnership in 2018 with the blockchain platform Socios.com, a proof-of-authority sidechain linked to Ethereum – essentially a blockchain within a blockchain. Ethereum sidechains are becoming an increasingly popular route for governance tokens as it provides owners with a platform, but also allows more control over key decisions, such as transaction fees.
The Paris Saint Germain Fan Token launched in January 2020 – and to gain interest it gave away thousands of the tokens through a Token Hunt. Socios placed tokens at “millions of points of interest across the world”. Through the app’s augmented reality (AR) feature, fans could find the tokens at the location and register by tapping on it, almost like a crypto version of the AR mobile phone game Pokémon Go.
Now PSG has a circulating supply of 3.1 million tokens with a max of 20 million. As of 16 November, the PSG price is hovering around the $20 mark.
How does PSG Fan Token work?
When looking at what is PSG fan token used for, aside from trading, there are three key ways: governance, rewards and staking. PSG holders can vote via smart-contract on various decisions that will affect the club. Users can also gain rewards from engaging on the Socios app. By using the app, users can level up their profile, which in turn gives them token rewards. Finally, staking the token gives even more rewards including non-fungible tokens (NFTs) for blockchain games and collectibles.
The first vote that PSG holders could participate in was to decide the inspirational message to go on the captain’s armband. Users could only vote once a poll, but it was weighted by the amount of tokens a person held. For example, if a user holds five PSG tokens, the vote will count as five.
Since then, PSG holders have voted on the design of the team’s bus and curtains at the players’ stadium tunnel. Fans are also able to choose the goal of the season and vote for the club’s end of season awards. Some fans have even received phone calls from the players via the Socios app.
Messi’s move to PSG
The football star Lionel Messi signed a deal to transfer from Barcelona to Paris Saint-Germain in August this year, which came as a shock to many fans. As part of the deal, Messi was given roughly €30m in Paris Saint Germain Fan Tokens, according to Reuters.
The football club said the transfers created a huge surge of interest in $PSG Fan Tokens, with trading volumes exceeding $1.2bn. The PSG token price saw a surge when the transfer was announced from $30.74 on 7 August to $49.90 on 9 August.
Alexandre Dreyfus, chief executive of Chiliz and Socios.com, said: “Paris Saint-Germain are reaping the rewards of their bold approach and I believe this could be the start of a new trend as Fan Tokens and Socios.com play an increasingly prominent role across sport at the very highest level.”
PSG Fan Token review
Although there have been some spikes in the price history of PSG, the token is not designed to be traded to make a profit. The purpose of the token is to connect fans with their team, whether that’s through exclusive content or voting on a slogan. Dreyfus said on Twitter: “People buy tickets, jerseys, and now… Fan Tokens. This is a new way to translate Fan Sentiment.”
However, there is one business profiting off the token, Paris Saint-Germain. Fan tokens are generating a new stream of income for football clubs. Marc Armstrong, chief partnerships officer of Paris Saint-Germain, said: “Fully embracing Socios.com and $PSG Fan Tokens has proved a massive success for the club. We have been able to engage with a new global audience, creating a significant digital revenue stream.”
PSG is not the only football club to monopolise on tokens. Manchester City, Juventus, and Barcelona are just some of the teams that have created their own token using the Socios platform.
PSG Fan Token price
The PSG token price stayed below the $10 price for most of 2020. The token started to pick up in spring this year, hitting $27.15 on 13 March and going on to reach $57.27 on 26 April.
Since April, the PSG Fan Token has been on a bearish trend, dropping below $30 in May. The football club’s token did see a spike on 10 August at $61.23 when it signed Messi, but it quickly lost momentum and the price continued to drop. In November so far, it has been around the $20 mark.
PSG currently has a circulating supply of 3.1 million tokens with a maxiumujm supply of 20 million.
PSG Fan Tokens can be traded on Currency.com. They can also be given to users as a reward through engaging with the Socios app and levelling up the profile.
Currently, the PSG Fan Token price is hovering around the $20 mark. The tokens have value to fans because they give them the chance to vote on club decisions, such as the bus design or the message in the locker room.