Top-flight French football team Paris Saint-Germain has announced preparations to launch a Fan Token Offering (FTO).
PSG to launch Fan Token Offering (FTO)
France’s biggest and most popular football club, Paris Saint-Germain (PSG) has announced that it is partnering with blockchain platform Socios.com to launch a token ecosystem, which is the Fan Token Offering (FTO).
PSG’s partnership with the platform will allow the club to launch a Fan Token Offering (FTO) that gives fans access to branded Saint German club tokens which come with voting rights and can also confer VIP status and/or rewards to their holders.
According to reports, the FTO of the football club will take place before the start of the next football season, although the exact date and token pricing are yet to be announced.
Socios.com likes to be described as a digitized, tokenized form of the “Socios” crowd-management concept of Real Madrid & FC Barcelona — “socios” is the Spanish word for member or associate.
The Socios.com platform is backed up by a sports blockchain organization popularly referred to as chiliZ. ChiliZ is known for its investments in the Binance coin.
In an interview with Cointelegraph, CEO of chiliZ, Alexandre Dreyfus said the organization has raised $66 million in funding to date.
What an FTO would mean for the football club
Launching a Fan Token Offering(FTO) will give supporters of the football club the ability to choose things like, player of the match, summer tours, line-ups for charity matches, jersey color, stadium music among others through voting.
Marc Armstrong, Chief Partnership Officer of PSG, in a press release emphasized on how PSG will help in the crypto future. He said:
“Paris Saint-Germain is determined to leverage the opportunities that cryptocurrency can provide. This revolutionary technology will have an important impact on the club’s overall business strategy and the way we engage with our fan base.”
Armstrong announced that the strategy to be adopted in launching the fan token offering for the football club represents a limited token mechanism.
The model to be used by the football club will not tokenize the club’s existing corporate structure but is focused on incentivizing and monetizing fan engagement and experiences via crypto.
When the PSG fan token is launched, supporters will trade with the token on the socios.com marketplace, but only against the chiliZ native token ($CHZ).
Cryptocurrency and the sports industry
Although Paris Saint-Germain will officially become the first football team to launch a token ecosystem, it is not the first sporting organization to make use of cryptocurrencies or the underlying blockchain technology.
NBA team, Sacramento Kings began accepting Bitcoin (BTC) in 2014 and proceeded to become the first team in the world to mine Ethereum (ETH) in June this year.
In July this year, Brazilian football legend, Ronaldinho, announced that he is creating his own RSC Coin in partnership with the World Soccer Coin aimed at establishing a football academy, host amateur, and global league matches.
Dreyfus believes that although PSG is the first football club to start off with this offering, the path laid forth will help millions of football fans to be engaged to the crypto world.