Why is PSG launching its cryptocurrency?

Blockchain technology is no longer confined to the realms of finance. It's not just about secure transactions and cryptocurrencies anymore. We've witnessed its profound influence on the world of business, especially in large retailers, who use blockchain to enhance product traceability. But the blockchain is now making its foray into the exciting world of sports, particularly football. Today, we'll explore how Paris Saint-Germain (PSG) is pioneering this transition by introducing their virtual currency.

PSG's Innovative Virtual Currency - Bridging the Gap

In September 2018, the current leader of the French football championship, Paris Saint-Germain, joined hands with Socios.com, a platform created by the Maltese startup Chiliz, owned by the Mediarex group. This partnership introduced an innovative concept - online tokens, known as "$PSG," which can be acquired using the virtual currency Chiliz ($CHZ). PSG fans can exchange these tokens for "Fan Tokens," fully fungible digital assets stored in the Chiliz blockchain, granting them a say in crucial club decisions.

A Unique Approach

Unlike the more significant stakes held by supporters of clubs like FC Barcelona or Real Madrid, PSG's approach is more about participation than ownership. Similar to the functioning of associations or political parties, these digital "socios" allow fans to influence decisions. They get the right to vote on various matters, like choosing entrance music, goal-celebration tunes, or bus messages during away games against rivals. Plus, they may even enjoy VIP experiences during matches or meet their favorite players.

The Token Market

With 20 million tokens available at just 2 euros each, the fluctuation in the price of Chiliz cryptocurrency can be an emotional rollercoaster for PSG fans. Success in competitions, such as reaching the Champions League's final four, can drive up token prices, while a string of losses might lead to a drop. The more tokens a fan holds, the more influence they wield, but a ceiling has been set to prevent any undue influence.

A Global Community of PSG Fans

This initiative aims to engage PSG supporters not only in France but around the world. It recognizes that fans come from diverse corners of the globe and are equally passionate, regardless of where they live. The head of Socios.com, Alexandre Dreyfus, sees this as a redefinition of the supporter's image, acknowledging that a fan can be born in Thailand, Japan, or any place, yet their passion remains unwavering.

PSG and Socios.com - A Five-Year Partnership

The partnership between PSG and Socios.com extends over five years, giving the club ample time to assess the impact of this cryptocurrency on its income. Marc Armstrong, the director of sponsorship for Paris Saint-Germain, who has a background in the NBA, believes that this revolutionary technology will significantly influence the club's overall commercial strategy and fan interactions.

Football Clubs as Lifestyle Brands

Football clubs are gradually transforming into lifestyle brands, much like artists in the music industry. They are developing a range of derivative products and loyalty programs to reward their global fanbase. PSG's virtual currency is a testament to this trend, and other prominent football clubs, including Juventus Turin, AS Roma, Atlético Madrid, and Galatasaray, have followed suit. Socios.com is striving to reach 1 million users by the end of the year, and this blockchain revolution in football is only beginning.

Conclusion

The integration of blockchain technology into football through initiatives like PSG's virtual currency marks a significant shift in how fans engage with their favorite clubs. It's not just about supporting from the stands; it's about having a say in the club's decisions, no matter where in the world you're cheering from. As football clubs evolve into global lifestyle brands, blockchain technology is playing a pivotal role in creating a stronger sense of belonging and involvement among fans.