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    Market cap of fan tokens records over 60% surge since June 2021

    Market cap of fan tokens records over 60% surge since June 2021

     

    The fan tokens market has been increasing in value in 2021, surging about $157 million as per total market capitalization since the month of June.

     

    According to data collated from FanMarketCap, the major fan token website, an estimated market cap of all fan tokens has been found amounting to over $417 million while writing. The figure is almost 60.4 per cent up from the overall value of $260 million that was recorded in mid-June 2021.

     

    The fan token market’s daily trading volume while writing this news piece was$270.2 million.

     

    According to the numbers on FanTokenStats, some most-valued fan tokens include Paris Saint-Germain (PSG) and Manchester City (CITY), that are issued by major fan token provider Socios, based on the Chiliz blockchain. 

     

    While PSG’s market cap is currently valued at above $49 million, CITY’s market capitalization stands at $38 million.

     

    The world’s largest crypto exchange, Binance, has also been recorded to be a major fan token player as it was reported to launch its own fan token platform this year in October. 

     

    The Lazio Fan Token (LAZIO) that runs on Binance’s token launch platform Binance Launchpad, is among the biggest fan tokens, having a market cap of approximately $51 million.

     

    Founder of Socios and CEO and Founder of Chiliz, Alexandre Dreyfus, has said that all fan tokens across both he ecosystems have been sold for $250 million as of yet. He has predicted that the full market size of fan tokens and social tokens would surge up to $10 billion in the upcoming five years.

     

    Fan tokens are digital currency types that provide their holders with access to a list of fan-related membership perks that include voting on club decisions, rewards, merchandise designs, fan engagement experiences at sports clubs and music fan clubs.

     

    Dreyfus has also emphasized that fan tokens are not crypto coins but rather digital assets since one cannot spend fan tokens on buying something, but one can own fan tokens for getting fan benefits.

     

    He also has that fan tokens’ use cases vary for both traders and fans as “fans would hold, and traders would trade.”

     

    According to the CEO, CoinMarketCap (CMC) and CoinGecko are some sources that correctly do not reflect the initial price of Socios-issued fan tokens, which stands at usually around $2 per token. As such, CITY had originally been priced at $2 per token instead of $10, according to CMC and CoinGecko.

     

    Dreyfus had also noted that CMC and CoinGecko often don’t get fan token offering price, but rather, they capture the listing price only. Here, fan tokens are “first pre-sold” at fixed prices, usually during a flash sale before it has been listed.

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