Celebrated Football clubs like FC Barcelona, Atletico De Madrid and AS Roma have posted double-digit rallies after Socios, the fan token platform, announced its partnership with UEFA that will present NFTs and other redeemable digital tokens for the European football fans.
The sports and entertainment industry has witnessed a rise in the popularity of NFTs and their utilization. The technology has started to be recognized by Sports brands, Organizations, music companies, artists and even in real estates. Another sub-sector of the industry market saw a rise in momentum on February 28 after the Union of European Football Association (UEFA) announced its partnership with Socio. According to the data of TradingView, the three biggest gainers from this partnership within 24 hours was Atletico De Madrid Fan Token (ATM), FC Barcelona Fan Token (BAR) and AS Roma Fan token (ASR) and all these fan tokens are a part of Chilliz (CHZ) protocol.
There are a total of three reasons why the spike in the price of these fan tokens have happened; the reasons include, as mentioned earlier, the partnership between UEFA and Socio, the ongoing qualifying matches for the football World Cup and the popularity of NFT is being combined with the most popular and watched sports in the planet.
The partnership deal with UEFA
With this partnership deal, Socios is the regional sponsor of the Champions League, and the contract is up and running till 2024. As a platform, Socios focuses on the creation of fan tokens, and the entry of an official football governing body like UEFA can be considered as a game-changer in this development.
Due to the collaboration between these two parties, the fan tokens will be made obtainable for free to the fan token holders of the club that have participated in multiple UEFA tournaments, including the Conference League and Europa League. The club fans will have the opportunity to win free NFTs and earn VIP experiences during the live games as long as the players are holding the club fan token on the Socio app.
The competition factor
The World Cup has been scheduled to start on 21 November, 2022. This is another reason that has created a hype among the football community and crypto enthusiasts alike. Moreover, most of the football leagues run from the month of August to May, which means the season is already in the third stage of completion, and the teams and their fans are mostly looking forward to winning a championship.
Additionally, the World Cup qualifier matches are also running for the 2022 World Cup, which will be held in Qatar from November 21 to December 17.
The increasing popularity of NFTs
The overall increasing popularity of NFT is another reason for the Fan tokens to receive a boost. Because of its digital usage, NFT now is being affiliated with sports, and the new use cases are arriving every day. Collectible items have always been considered a sign of hallmark in sports. Be it in-game items or cards, fans have always profoundly wanted to collect equipment signed by their favourite players, and NFT has played an important role in enabling people to collect equipment through digital means.