Fan token market cap surged over 60% since June: Data

All fan tokens across Socios and Chiliz’s fan token ecosystem have sold for $250 million so far, founder and CEO said.

The fan token market has been growing in value this year, surging around $157 million in terms of total market capitalization since June.

According to data from major fan token website FanMarketCap, the market cap of all fan tokens is estimated to amount to slightly over $417 million at the time of writing. This is almost 60.4% up from the overall value of $260 million recorded in mid-June 2021, as Cointelegraph previously reported.

The fan token market’s daily trading volume amounts to $270.2 million at publishing time.

According to FanTokenStats, some of the most-valued fan tokens include Paris Saint-Germain (PSG) and Manchester City (CITY) issued by major fan token provider Socios and based on the Chiliz blockchain infrastructure. While PSG’s market capitalization is valued at just over $49 million, CITY’s market cap is at $38 million.

Binance, the world’s largest cryptocurrency exchange, is also a major fan token player, launching its own fan token platform in October 2021. Running on Binance’s token launch platform Binance Launchpad, the Lazio Fan Token (LAZIO) is among the biggest fan tokens with a market cap of roughly $51 million, according to FanTokenStats.

Socios and Chiliz founder and CEO Alexandre Dreyfus told Cointelegraph that all fan tokens across Socios and Chiliz’s fan token ecosystem have sold for $250 million so far. He predicted that the market size of fan tokens and social tokens will surge up to $10 billion in the next five years.

Fan tokens are a form of digital currency providing holders with access to a number of fan-related membership perks including voting on club decisions, merchandise designs, rewards as well as other fan engagement experiences within sports clubs and music fan clubs.

Dreyfus emphasized that fan tokens are not cryptocurrencies but rather digital assets: “You cannot spend fan tokens to buy something, you can own fan tokens to get fan benefits.” He still noted that fan tokens’ use cases are different for fans and traders. “Fans will hold, traders will trade,” Dreyfus said.

Related: Manchester City officials sign and suspend partnership with mysterious crypto firm within a week

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

“You can’t see it on CoinMarketCap,” Dreyfus noted, adding that sources like CMC and CoinGecko don’t get fan token offering price but rather capture the listing price only. “Fan tokens are first pre-sold at fixed price during a flash sale before being listed,” he added.

Nifty News: Pepsi’s debut drop, 1inch expands P4 Metaverse and Tom Brady gifts NFTs

Pepsi and VaynerNFT drop free genesis collection, 1inch and Parts of Four partner to expand the P4 Metaverse, Tom Brady gifts NFTs on Autograph and Pantone releases the Color of the Year 2022 with Tezos

Cointelegraph has had a lot of NFT related news this week from pop culture to sports and gaming. Below is a roundup of stories you don’t want to miss. 

Pepsi and VaynerNFT team up

Pepsi launched their Mic Drop genesis NFT collection made up of 1,893 generative style NFTs on the Ethereum blockchain. The number commemorates the year Pepsi was born. Consumers will only have to pay gas fees, and to ensure more manageable fees, Pepsi implemented a waitlist process from now until December 14.

In homage to the brand’s history, the design of the NFTs are grounded in variations of a microphone visual and inspired by iconic Pepsi flavors including classic blue Pepsi, silver Diet Pepsi, red Pepsi Wild Cherry, black Pepsi Zero Sugar and more.

The Pepsi Mic Drop NFT collection was designed by and created with VaynerNFT, a consultancy under the umbrella of the VaynerX holding company. Gary Vaynerchuk, CEO of VaynerNFT told Cointelegraph, “NFTs will change the culture of value creation forever; this is an exciting moment for the brand to build loyalty & bring immense value to its community & fans.”

Additionally, Pepsi is implementing a carbon offset program for the launch of the Pepsi Mic Drop NFT to ensure a net carbon footprint of zero.

1inch and Parts of Four drop Mystery Box

A joint collection of magic and industry by 1inch and Parts of Four will debut as a Mystery Box drop on the Binance NFT Marketplace on Dec. 13. In total, 22,000 NFTs with 31 versions will be minted across 7 levels of sophistication, and offered at 25 BUSD each.

Based on the Parts of Four catalog, the NFT collection of digital jewelry employs an alchemy-based NFT approach. The collection will also be part of a game focused on acquiring and forging rare wearables across P4’s upcoming Greater Metaverse.

The P4 Metaverse expansion will begin with an ERC-20 community token, P4C, and then towards an NFT platform running on the Binance Smart Chain, or BSC. The Parts of Four ecosystem plans to promote interaction with the physical world via embedded tech, AR and bi-directional swaps via the P4 platform.

Tom Brady drops Origins NFT Collection for the holidays

The Tampa Bay Buccaneers quarterback Tom Brady released a 16,000 collectible set on his Autograph NFT platform called “Live Forever: The Tom Brady Origins Collection.”

This collection that represents memories from the beginning of his football career includes a resume he created prior to his 2000 draft selection, a stopwatch, cleats, a jersey from the NFL combine, and more.

The catch however is that the NFTs will be a mystery at the time of purchase until Dec. 14 when token owners can unlock them to reveal a collectible in 1 of 5 possible styles and tiers of rarity.

Tezos x Pantone Color of the Year Initiative

Pantone, the global color authority, has chosen the energy-efficient Tezos blockchain to release the Color of the Year 2022 through a digital collection as NFTs. 

PANTONE 17-3938 Very Peri, is the Pantone Color of the Year selection for 2022. This year marks the first time a colour has been created specifically for Pantone’s colour of the year designation. Paris-based multidisciplinary artist, Polygon1993, will create artworks inspired by this periwinkle shade to develop a digital representation of the color.

Tezos, with over 50 million transactions in 2021, had an average carbon footprint of just 17 individuals.

Other Nifty News

French gaming giant Ubisoft Entertainment SA is facing backlash from the gaming community after launching its new NFT platform Ubisoft Quartz. Ubisoft’s YouTube video introducing its NFTs got a 96% dislike ratio. 

Virtual land sales in the metaverse have been dominated by NFT sales since the beginning of December reaching over $300 million. Of that total, almost a quarter has been for digital land in The Sandbox metaverse, outpacing all other items, art and collections.

Why a securities specific blockchain is needed, explained

Security tokens deployed on a purpose-built blockchain may be the solution to financial institution adoption.

How can a securities-specific blockchain accelerate adoption?

A successful securities-specific blockchain fills all gaps in the current Ethereum architecture by providing efficiency, automation and transparency.

Aligning a functioning blockchain with the needs of modern capital markets will require solutions to governance, identity, compliance, confidentiality and settlement. To address these gaps, Polymath has spearheaded the creation of Polymesh, an institutional-grade, public, permissioned blockchain built specifically for regulated assets. In practice, the platform aims to address these five challenges by:

  • Requiring users to validate their identity with a verified service provider when they are initially onboarded
  • Automating the compliance of assets in a transparent and real-time manner to simplify their reporting and remove the need for complex systems 
  • Implementing a confidential transaction workflow that allows cryptographic proofs to be safely mixed with off-chain declarations.
  • Operating under the governance of a main council and a set of specialized sub-committees 
  • Addressing the probabilistic finality that currently prevents the technology from acting as a golden ownership standard

Taken together, a securities-specific blockchain will address these five key gaps that exist in Ethereum’s architecture. A securities-specific blockchain will also provide increased efficiency, automation and transparency to capital markets in general. These three factors will act as significant improvements in bringing down the costs and time for existing asset classes and processes. The result will be lower fees, new investable asset classes, more exciting options for investors.

Polymesh launched on Oct. 28, 2021, following a successful incentivized testnet with more than 4,300 users. Users can now use the chain to create, issue, and manage security tokens as well as participate in on-chain activities like governance and staking.  

Visit polymesh.network for more information

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

What issues need to be addressed in security tokens to bring them to institutional standards?

ERC-1400 has made security tokens much more viable for institutions, although concerns still exist around securing and settling public securities.

ERC-1400, a proposed standard for issuing and managing security tokens on the Ethereum blockchain, has already come a long way in making security tokens more viable for institutions. Unfortunately, these standards still lack functionality and scalability since general-purpose blockchains like Ethereum are not ideal for securities.

An area of contention still exists in how public securities can be cleared and settled. Some regulators already look to off-chain methods as a solution for recordkeeping, although they leverage on-chain security tokens to represent the securities themselves. On the other side, some regulators have fully embraced the blockchain as the golden source of truth. Furthermore, a debate still exists on the Central Securities Depository’s role in improving processes.

What are security tokens, and what opportunities do they provide?

Security tokens create new possibilities due to their enhanced features and ability to follow existing regulations, with opportunities in fractionalizing asset pools or tokenizing cash flows.

Security tokens are regulated assets on the blockchain and can be identified as investment contracts. Security tokens can represent ownership in an asset such as equity, real estate, debt, etc. The only difference between them and a traditional asset is that each is created digitally. Due to their tokenized nature, security tokens can unlock the power of the blockchain by providing enhanced features, including automated operations, increased global liquidity pools, and the creation of new financial assets.

As a result, security tokens bring new opportunities for investments and reduce costs for everyone in capital markets. For example, a user can tokenize a cash flow from a specific product at a specific company. As a tokenized asset, investors can now gain exposure to the specific cash flow from the company rather than the whole company. Another example can be applied to real estate. In this example, owners can now sell a fraction of equity in a larger asset pool rather than an entire fund, providing benefits such as reduced friction and a quicker closing time.

Additionally, security tokens follow existing regulations. Therefore, regulators are generally comfortable with their usage since the industry has already clearly defined and shown an understanding of these laws.

What is preventing the widespread adoption of blockchain by financial institutions?

Although many institutions have been interested in the technology for a while, they still have concerns around regulatory uncertainty and the challenges with the existing infrastructure.

More institutions than ever before have become curious about blockchain. In fact, according to Deloitte’s 2021 Global Blockchain Survey, almost 80% of the respondents shared that digital assets would become very important to their respective industries over the next 12 months.

Even though digital assets are being used more broadly, there are still obstacles that must be overcome prior to mainstream adoption by financial institutions. 

Among these challenges is identity, which is often an after-thought that runs in opposition to the pseudonymity and decentralized nature of Ethereum (ETH), creating compliance challenges for issuers and investors alike. 

Furthermore, governance has also proven to be an obstacle and risk due to the number of hard forks that typically occur during Ethereum upgrades. Finally, compliance is often hindered by transaction limitations within the technology architecture.