The PSG token, a fan token launched by the football club, Paris Saint-Germain, creates a new all-time high (ATH) after Argentine football superstar, Lionel Messi confirmed that he was joining the French football club.
The PSG token is generally an asset that can represent proof of ownership or even membership. The token price more than doubled after Messi was publicly unveiled just 2 days ago. The coin traded as high as $61.23, an ATH but later corrected due to profit-taking.
Paris Saint-Germain revealed that Messi agreed to a €35 million per season deal and would also include payments in the PSG fan token. The news service cited sources from the football club, claiming that the PSG token would be a part of Messi’s “welcome package,” provided by Socios.com, the club’s fan token provider.
Socios’ native token, Chiliz (CHZ), currently ranked #56 by market capitalization, is up 1.60%, currently trading at $0.34, as of the time of writing this report. In the last 7 days, the coin has gained over 35%.
The news shows how the sports industry is getting involved with cryptocurrencies. In doing so, clubs are attempting to employ digitized tokens to provide holders with the right to vote on minor decisions and enable them to buy sports merchandise using the fan tokens.
Fan tokens also serve as an opportunity to gauge fan sentiment for any decision a club makes. For instance, the PSG token’s rally to an all-time high of $61.23 yesterday on news of Messi joining the club, helped showcase the club’s followers’ approval of the decision.
The PSG token is not the only fan token as other football clubs like Manchester United, Arsenal, FC Barcelona and Italian AC Milan have all launched their fan tokens earlier in the year.
Socios Chiliz exchange founder and CEO Alexandre Dreyfus noted that clubs that signed up with them at the early stage made massive profits in terms of revenue. When the business model of monetizing fan engagement worked financially, more clubs joined. On this he stated to sports pro media, “The thing is, all of these teams, they talk to each other. So they call each other and say, ‘hey, can we have more information about your partnership with Socios? Does it work? Are we legit? Did you really get paid the amount you got paid?”
The platform has reportedly generated a revenue of $200 million so far this year with 48 partners.
PSG token is trading at $40, down 2.85% as of the time of writing this article.