In times of high tension and market turmoil, sports entertainment has served as a valuable escape for people around the world as they get a chance to root for their favorite players and teams, while the world concerns itself. Forget about it for a while.
Sports fans have reason to rejoice amid the ongoing volatility in the market and the drop in crypto prices as several fan tokens eased the downtrend on May 18 to post gains of over 40%.
Here’s a look at recent developments that have helped propel Paris Saint-Germain (PSG), Juventus (JUV), FC Barcelona (BAR) and other fan tokens to the top of the charts today.
Chiliz Testnet Step 2
The biggest driver of momentum for fan tokens is coming from new developments on the Chiliz protocol, which operates Socio, a blockchain-based sports entertainment platform.
On May 17, Chiliz revealed the launch of Jalapeno, the second phase of its Scoville testnet, which is part of a wider launch of the Chiliz mainnet.
– The jalapeno begins!
DEX: Pepper Swap
Fan Token Testing Survey$CHZ pic.twitter.com/eqXPk1HeIT
– Chiliz ($CHZ) – Powering Socios.com (@Chiliz) 17 May 2022
Some of the new features up for testing in Phase 2 include the launch of PaperSwap, which will provide a decentralized exchange and fan token test surveys that allow token holders to participate in surveys and governance votes on the protocol.
Eventually, users will be able to interact with a community of specific fan tokens and vote on developments they’d like to see for that club through fan token surveys, which are among the features that interest many beginning investors. is one.
Fan Token Listing in a New Exchange
A new listing on Bitpanda could be another reason why fan tokens surged on May 18.
Say Bonjour to One of Our Latest #cryptoWednesday Listing: $psgbase token of @PSG_inside , @society Which gives fans the power to vote on club decisions and access VIP events. pic.twitter.com/ISko87ZKt3
— bitpanda (@bitpanda) 18 May 2022
According to Bitpanda’s Twitter, there are at least 7 fan tokens listed on May 18th.
related: From exploiting sports fans via NFT W . Will not done
Token burning reduces supply
Another factor driving fan token prices is the Chili’s Head2Head burn contest which burns a portion of the fan token circulating supply based on the results of live matches between clubs.
#Head2Head burn
Fan tokens will be burned for each goal scored during @JuventusFC Vs @Inter Today at 21:00 CEST
1 x $JUV, $inter Target = 2,000 Fan Tokens
1 x $JUV, $inter Win = 4,000 Fan Tokens
I $CHZ pic.twitter.com/c4ugx2xM8B
– Chiliz ($CHZ) – Powering Socios.com (@Chiliz) 11 May 2022
Based on this design, the head2head burn mechanism will affect the tokenonomics of a project by helping to reduce the circulating supply of tokens over time, which can result in price increases when demand increases.
It also provides a way to see a team’s performance reflected in its token supply, with better performing teams burning more of their token supply. If the Head2Head burn process proves to be effective, the value of some teams could potentially increase due to reduced circulating supply.
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