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June 28, 2022
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Messi joined the cryptocurrency by receiving part of the PSG fee in tokens

Football star Lionel Messi’s signature at Paris St Germain includes some of the French club’s cryptocurrency tokens, in the latest big-name endorsement of new digital assets.

Messi joined the cryptocurrency by receiving part of PSG’s fee in tokens, the 34-year-old Argentinian left Spain’s Barcelona and signed a two-season contract with Qatar’s Paris St Germain (PSG) on Tuesday, with an option for the third year.

Confirming an exclusive Reuters report, PSG said on Thursday that tokens were included in its “welcome pack“, which media reports have estimated at 25-30 million euros ($29-35 million). The club did not disclose the proportion of tokens in the package, but said the value is “significant“.

Fan tokens are a type of cryptocurrency that allows holders to vote on minor decisions related to their clubs. Among the clubs that will launch tokens this year are English Premier League champions Manchester City and Italian AC Milan. Barcelona, ​​former club of Messi, launched one last year.

Tokens are increasingly seen by clubs as a source of new revenue and the Partners.com, which provides the tokens to PSG and other top clubs, says the tokens generated nearly $200 million for its partner clubs in 2021, with PSG already earning revenue from the Messi deal.

  • Messi joined the cryptocurrency by receiving part of the PSG fee in tokens.

Like bitcoin and other digital currencies, fan tokens can be traded on exchanges. They also share in common with other cryptocurrencies a trend of large price swings, prompting some regulators to warn investors about digital assets.

Still, several high-profile business and entertainment figures supported cryptoactives, with Tesla boss Elon Musk, Twitter founder Jack Dorsey and rapper Jay-Z among those who showed support for bitcoin.

PSG said there was a large volume of trading in fan tokens following reports that Messi was about to join the club.

Turnovers exceeded $1.2 billion in the days leading up to the arrival of the six-time Ballon d’Or award winner for best football player in the world.

“We were able to engage with a new global audience, creating a significant digital revenue stream.”

said Marc Armstrong, director of partnerships at PSG.

NEW TREND

The price of PSG’s fan token has risen this week on rumors of Messi’s deal, with new sales generating around €30 million and PSG receiving an unspecified majority of that amount – at least €15 million, said a source with knowledge of the subject. PSG declined to comment.

Token price movements  may have little connection to performance or results in the field.

The PSG token, which has a market capitalization of about $52 million, rose more than 130% in just five days amid speculation over Messi’s arrival to a high of more than $60 on Tuesday . The last drop was 10%, to about $40, according to the CoinMarketCap website.

Alexandre Dreyfus, CEO of Socios.com, said PSG is benefiting from the token and other clubs can imitate the Messi deal.

“I believe this could be the start of a new trend as fan tokens and Socios.com play an increasingly prominent role in the sport at the highest level,” he said.

PSG have won national titles since their deep pocket owners Qatar Sports Investment took over in 2011. But they have never won the prestigious and lucrative European Champions League. Messi has won four times, most recently in 2015.

The arrival of Barcelona’s top scorer, ​​with 672 goals, will boost PSG’s ambitions and should boost revenue from business and merchandise sales.

Source: Reuters

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