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PSG Fan Token Review

Fans of all countries — unite! With this motto, the popular Paris Saint-Germain Football Club entered the digital age and issued its own tokens to keep up with other “digitized” areas of life. Similar coins of sports clubs and teams are called fan tokens and we’ll tell you what they are generally intended for and how PSG fan token works.  

What is Fan Token?

This PSG Fan Token review is not the first material on our blog, which is dedicated to fan tokens, so many readers have already learned what it is and how it works (ASR, JUV). But for those who came to Binaryx from the Google search page and have not yet had a look at our blog, let’s have a short intro. 

Fan Token is a relatively new direction of cryptocurrency development, which appeared several years ago to bring sports events to a new level and to expand interaction between teams and fans. Fan token creators strive to transform fans from passive watch-only donators to an organized community that influences the life of clubs by general voting. 

In addition, fan tokens have proven to be a useful tool for clubs that have been able to offer their fans something more than scarves and horns. This allowed to newly excite the fans’ interest in the life of a team and to make everyday processes, such as buying tickets and ordering merchandise in official stores, more comfortable.

Special attention should be given to Socios.com platform, which, at the moment, is practically a monopolist in the fan token sector, providing clubs with a full service for issuing and administering their own coins. The platform features tokens of players and teams from several sports, including wrestling, soccer, and e-sports. 

The current form and functionality of fan token is due to Socios’s developers, who were among the first to enter the niche and formalize key processes. In addition, Socios has developed the FTO (fan token offering) format, which involves the primary distribution of coins via the platform at a fixed price. As a matter of fact, Paris Saint-Germain Football Club token was issued on the Socios platform. 

How do NFT and fan tokens work?

The rapid development of NFT started in late 2020 — early 2021, and the tokenization of physical goods is spreading like a wildfire across all industries (primarily art and collecting). NFT organically completed the concept of fan tokens and allowed to expand the functionality of regular coins, giving their owners additional rewards and privileges. 

Standard PSG (and other clubs’) fan tokens are not NFT-type and do not differ from any other token, but Paris Saint-Germain allows PSG holders to participate in NFT auctions to win fungible tokens, which can be in the form of:

  • match tickets;
  • collectibles;
  • event invitations;
  • guided tours and meet the team experiences;
  • digital badges. 

As part of the Socios platform development, the club also plans to implement the opportunity to earn NFT through a fan token staking. Though, so far the platform has no such functionality and the date of its introduction is unknown.  

What is PSG Fan Token?

After such a long intro, let’s go directly to PSG Fan Token. In January 2020, Paris Saint Germain announced the launch of its own coin, becoming, along with Juventus, one of the first football clubs to issue fan tokens on Socios (and fan tokens in general). 

1,288,396 coins were distributed via FTO, where tokens were sold at a fixed price, paired with Socios’s native coin — CHZ. The first proposal voted for by PSG holders was the choice of an inscription on the armband of the team captain — Thiago Silva. 

Socios platform provides PSG Fan Token with standard fan token functionality:

  • solving issues published on the platform by voting;
  • participating in the drawing of collectibles, merchandise and tickets;
  • receiving rewards and bonuses from the club (e.g., cashback);
  • access to exclusive areas of the club’s home base;
  • staking to earn PSG and CHZ;
  • meet the team experiences. 

The fulfillment by the PSG management of the decisions made by the fans is guaranteed by a contract, the parties to which are Socios and the Football Club. Though it’s not the most reliable way to formalize the commitments, especially when using blockchain technology, but so far PSG has been fulfilling its obligations in good faith. 

Staking pools have not been added yet, but Socios has another interesting format for earning new coins — token hunting. Fans are encouraged to stroll through the area to find more PSG and CHZ tokens. It generally resembles Pokemon Go, but instead of Pokemons you collect fan tokens that can be sold for real money. 

PSG technically runs on Chiliz Chain, a sidechain of the Ethereum network that uses PoA algorithm to confirm transactions. It doesn’t support traditional mining, and the coin mining through staking has not been implemented yet. PSG quantitative indicators are as follows:

  • Total token supply — 20,000,000 PSG;
  • Current circulating supply — 1,288,396 PSG;
  • The rest of the coins should gradually appear on the market over the next 8 years.

One of the PSG features, that makes it stand out from the Socios fan token family, is token burning. The platform announced the burning for the first time in January 2021, the day before Paris Saint-Germain vs. Marseille football match. Socios planned to burn 10,000 tokens for each goal scored by PSG and another 20,000 tokens if the team wins. In theory, this step should increase the PSG deficit on the market, although the volumes of burning compared to the circulating supply are little to nothing. 

As for the PSG rate, the coin entered the market at a price of just over 6 USD. As of this writing, its price is almost 22 USD, i.e., its rate increased by more than 300%. The coin’s price dynamics is also interesting because it weakly correlates with the general market trend and depends mainly on the FC’s events and the expansion of the PSG ecosystem:

It is difficult to make predictions for this coin, mainly because of the low demand from traders and investors (and, therefore, weak correlation with other market assets). The situation is further complicated by the management centralization — one decision of the PSG management can either raise the exchange rate or bring it down to zero. In addition, fan tokens are a relatively new phenomenon both in the sports industry and in the cryptocurrency market, and it is not clear how fans will react to it, let alone traders. 

Where to Buy Cryptocurrency? Available Exchanges 

As already mentioned, PSG Fan Token entered the market via FTO on the Socios platform and was intended to be sold only through it by using native CHZ tokens only. However, at the end of 2020, the coin appeared on the open market and is now available not only to the Socios application users. 

Binaryx is interested in listing any coin of interest to our users, therefore it is considering PSG as a potential candidate to include in the list of traded assets. However, the situation with fan tokens in general and PSG in particular requires a more detailed study.

The main problem of the entire Socios fan token family is high centralization and, therefore, vulnerability to insider trading and big market players. We need more time to check the safety of such assets and to present on Binaryx a high quality and proven product in which both traders and investors will be interested.  

PSG Wallets

Storing relatively little-known assets is one of the main concerns of holders. To manage and securely store PSG Fan Token, you can use:

  • Multicurrency wallets — part of the token is issued on the Binance Smart Chain and has a fairly popular BEP-20 standard, supported by many wallets;
  • Binaryx Integrated Wallet — we provide each account with a wallet to hold any listed asset. The built-in wallet is suitable primarily for those, who are interested in high liquidity of the asset and consider it as an investment object. 

However, most of the coins are still issued on Chiliz Chain and the PSG functionality can be fully used only on the native platform, i.e., via the Socios application. It includes a wallet, an exchanger, a staking service and a voting platform. 

Binaryx trader’s opinion

Interestingly, Fan Tokens have neither ICO nor IEO. All funds necessary to start the projects are collected with the help of private token sales, and this indicates the interest of certain parties. Whether it’s the owners of clubs or bookmakers, who will find it very profitable to deal with crypto, the entry of this type of token into the market is already an established fact. Should they enter Top 100 Tokens by Market Capitalization or not, we’ll see shortly. But the fact that these tokens are often pumped is already proven. For example, ASR, as of March 15, 2021, increased by 70% and has already managed to correct itself. PSG, as of March 10 and March 13, 2021, increased by 70% and 80%. So far, PSG is traded at 19 USD. According to the technical analysis, in the near future the growth potential of this coin will be 50-70%. Those who have not yet purchased this asset — hurry up to do so! Just don’t go too far (unless, of course, you are a fan of Paris Saint-Germain Football Club and believe in this token as in BTC :))

Conclusion

PSG Fan Token is one of the first fan tokens from the world famous football club. It provides its holders with a number of advantages and opportunities, the main of which are:

  • making decisions by voting;
  • staking and token hunting;
  • cashback;
  • rewards and draws.

All the functionality of the token and processing of transactions is provided by the Socios platform, which is responsible for the infrastructure and, in fact, is an intermediary between PSG holders and the club’s administration. All decisions regarding the token emission, sale and distribution are also made by the Paris Saint-Germain management, which makes the coin centralized. 

PSG is interesting primarily to fans, as it increases their value for the club and simplifies the purchase of tickets, guided tours or club’s merchandise using cryptocurrency. However, traders and investors demonstrate a relatively low interest in the token as a market asset, which may be due to both its centralization and limited scope.

Also, in the near future, new sports clubs and tokens will be introduced for trading and investment, so to enable interaction with e-sports teams. This direction is on the rise and it can be already observed that bookmakers integrate bets in computer games on their platforms. The volume in this sector is no less than in the football sector, with even more fans. Interestingly, in terms of age, the generation that interacts with each other at the computer level is getting younger and decisions on buying fan merchandise or simply interacting with teams are becoming more accessible.  

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