Exploring the road of football Web3.0: fan economy, asset digitization and long-termism

Original title: "Exploring the road to football web3.0: fan economy, asset digitization and long-termism"

Original source: R3PO, Web3 investment research team

Foreword

In less than a month, the 2022 Football World Cup will be held It will be held in Qatar and is expected to attract 5 billion viewers. R3PO believes that traffic is money. According to financial reports, FIFA's total revenue in 2018 was 4.641 billion US dollars, and this number may still increase this year.

In fact, the stadium has never lacked capital and fans. From football games to star cards, from NFT to fan tokens, millions of sports fans have built a sports encryption derivatives market with a scale of over 10 billion. Focusing on the football field, R3PO found that only the encrypted derivatives around this World Cup include World Cup Token (WCT), QATAR 2022 Token (FWC), WORLD Cup INU (WCI) and so on. As the World Cup continues to approach, its price has ebbed and flowed several times. According to OKX, last week’s four major football fan Tokens (Fan Tokens) performed very well. POR (Portugal) rose by 17.1% in a week, and CITY (Manchester City) and ARG (Argentina) also rose by more than 11.8%. Since the beginning of 2022, global fan token sales have soared about 200% monthly, from $2.2 billion in January to $6.4 billion in September, according to CryptoSlam.

According to related reports, although the encryption market is in a bear market, Chiliz, the company behind many well-known football fan Tokens, still increased its staff by 70%. The number of full-time employees exceeds 300. How can a project like Chiliz survive and even expand through the winter? R3PO tries to sort out one or two for everyone.

Chiliz is a survivor of the last crypto winter. According to Siyi, the person in charge of its Chinese community, “Chiliz is more like an Internet company.” They mainly serve the sports and entertainment industries, customizing fan communication design solutions and economical solutions for companies in the sports industry. In 2019, Chiliz launched Socios.com, an application for mainstream consumers, which jointly launched fan tokens with world-renowned teams including Barcelona, Juventus, Paris Saint-Germain, etc. Through Socios.com and Fan Token, fans can participate in the daily decision-making of the football club they support and express their opinions by voting. The Socios.com platform uses the token (CHZ) issued by Chiliz itself, and supports both ERC20 and BEP-2 formats.

The enthusiasm of fans to participate in football club decision-making has long been proved by data. The so-called "football simulator" game FIFA has generated more than 20 billion US dollars in sales, and the football simulation management game Football Manager has also iterated nearly 20 versions and has continued to be popular for 30 years. Today, fans can truly participate in the daily decision-making of real football clubs (such as the design of new uniforms, celebration songs, and even the starting lineup) through the way of fan tokens, which undoubtedly has a "fatal" appeal to fans. What's more, on the Socios.com platform, fans can also communicate and connect with fans around the world in the "chat room", participate in exclusive promotional activities of club sponsors, and in-depth interactors also have the opportunity to participate in club activities and gain platform Rewards (rewards include peripheral products such as autographs, VIP boxes at home to watch games, meet with stars and home team members, etc.), these are things that games cannot bring, but fans absolutely desire.

According to Crunchbase, Chiliz has raised two rounds in 2018 and 2021 respectively, with a total fundraising amount of US$66 million. Investors include several cryptocurrency trading platforms and Asian cryptocurrency funds including Binance, OK Blockchain Capital, and Ceyuan Venture Capital. Ecologically speaking, Chiliz is indeed full of vitality. Its user base determines its strong scalability, sustainability and stability, while the core of the fan economy determines that it conforms to economic laws and commercialization mechanisms. It has not only established cooperation with the famous football clubs mentioned above, but also expanded to e-sports teams such as OG and teamhereticx. At present, 54 sports clubs/e-sports teams have issued fan tokens in cooperation with it, and dozens more will be launched soon, with more than 100 cooperative institutions. Chiliz is exploring how to build a real digital fan community and use web3.0 to realize the digital assetization of the fan economy.

Image description: Chiliz platform Image source at a glance: Chiliz

Chiliz's exploration includes issuing its own Token CHZ. CHZ can be used to exchange fan tokens on its platform, and the total amount of issuance is constant. The blockchain browser shows that the current total transaction volume has exceeded 26 million, involving 1.71 million wallet addresses. According to Kriptomat, it can be seen that the current circulation of CHZ is 5,344,064,580, and the total market value exceeds 1 billion US dollars. At its peak, the market value of CHZ was close to 4 billion US dollars.

Image description: Chiliz Token Image source of distribution map: Chiliz

In terms of infrastructure construction, Chiliz has not stopped moving forward. In March this year, the Chiliz chain 2.0 (CC2) launched the test network, expecting to create a scalable, semi-distributed blockchain, suitable for start-ups and mature enterprises in sports and media. The general release of CC2 is expected to take place in the fourth quarter of 2022.

The following are the attempts of 10 football clubs sorted out by R3PO to enter the encryption world, not limited to football with Chiliz club. All information in this article is only for readers to understand the product and market, and does not constitute any investment advice (the data involved in the following are as of the time of writing this article).

Santos FC

Santos Football The club (Santos FC) was established in 1912 and ranks 10th in the 2021-22 Brazilian Serie A. It is the team with the most scoring records in the history of global football. It has star players such as Pele, Carlos Alberto, and Neymar. It is also one of the most successful football clubs in Brazil. It has won 8 Brazilian championships. In addition, it has also won 1 Brazilian Cup, 3 South American Libertadores Cups, and 1 South American Football Confederation Cup. Ranked 2nd among the most valuable clubs in Brazil and South America in 2019, the club's Twitter account, Santos FC, has 3 million followers.

Santos FC Fan Token (SANTOS) is a football team of the same name jointly launched by Santos FC and Binance Launchpool in November 2021 Fan Token, the goal is to increase the participation of fans and establish a relationship between the club and fans. SANTOSToken holders can participate in voting and other promotional activities, and can also obtain fan rewards, digital collections and loyalty points; using SANTOS, users can obtain exclusive merchandise, game tickets and club membership; if they hold a certain amount of SANTOS, they can also It is possible to participate in various gamification features on the platform; moreover, fans can also directly donate SANTOS to obtain badges as proof of loyalty.

As of October 25, 2022, SANTOS ranks 340 on CoinMarketCap, with a market cap of $53 million and a circulating supply of approximately 15.2%.

Picture description: Santos FC Fan Token price change trend (in recent March)

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Official website address: Santos Of The World

FC Porto

Founded in 1893, Porto Football Club (FC Porto) is the only Portuguese football club that has become a member of G-14. It ranks first in the Portuguese Super League in 2021-22. Pei et al. Won 2 UEFA Champions League titles. The club's Twitter account, FC Porto, has 1.5 million followers.

FC Porto Fan Token (PORTO), launched in November 2021, is a fan token on BEP-20, aiming at Motivate the fans of FC Porto. PORTOToken holders can interact with the club's players, and are also eligible to receive other experiences such as meet-and-greets, signed merchandise; holders can also vote on various activities of the club, including choosing jerseys, etc.; holders also have the right to share any amount PORTOToken donated to the club; in addition, holders can also use PORTOToken to purchase official merchandise and tickets.

As of October 25, 2022, PORTO ranks 454 on CoinMarketCap, with a market cap of $32 million and a circulating supply of approximately 19.5%.

Image description: FC Porto Fan Token price change trend (in recent March)

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Official website: FC Porto 

S.S.Lazio

Lazio Sports Club (S.S.Lazio) was established in 1900 and ranks fifth in Serie A in 2021-22. The famous players of the club include Nesta, Nesta Deved, Signori, etc. He has won 2 Serie A titles, 6 Coppa Italia titles and 3 Italian Super Cups. The club's Twitter account, S.S.Lazio, has 660,000 followers.

Lazio Fan Token (LAZIO) launched in December 2020, it represents the right to vote, allowing holders to Access to unique club-specific rewards and experiences; holders can influence club decisions through LAZIO, for example, to determine the information on the captain's armband; holders also have the opportunity to visit the players' area in the stadium, or obtain the right to watch the game in the VIP area , and get discounts on club merchandise and more.

As of October 25, 2022, LAZIO ranks 424 on CoinMarketCap, with a market cap of $37 million and a circulating supply of approximately 21.5%.

Picture description: S.S.Lazio Fan Token price change trend (in recent March)

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Official website: S.S.LAZIO sito ufficiale

Paris Saint-Germain F.C

Paris Saint-Germain F.C was founded in 1970, 2021-22 Ranked No. 1 in Ligue 1, the club's famous players include Messi, Neymar, Weah and so on. He has won 10 Ligue 1 titles, 14 French Cup titles, 9 French League Cup titles, 11 French Super Cup titles, and 1 European Cup Winners' Cup title. The club's Twitter account, Paris Saint-Germain, has 13 million followers.

The Paris Saint-Germain Fan Token (PSG) was launched in January 2020. Users can purchase fan tokens through the Socios platform and participate in the Club governance. Holders are entitled to the club's NFT, digital badges and VIP tickets; holders can pledge Token to obtain additional rewards, including gamified NFT of blockchain-based games and NFT collections with aesthetic value; in addition, the club The plan is to take the token to the next level by rolling out promotions for token holders to win players' signed jerseys, hosting crypto events around the token, and running extensive marketing campaigns in Latin America and Asia.

As of October 25, 2022, PSG ranks 504 on CoinMarketCap, with a market cap of $26 million and a circulating supply of approximately 19.2%.

Picture description: Paris Saint -Germain Fan Token price change trend (nearly 3 months)

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Official website: PSG.FR- Paris Saint-Germain official website

FC Barcelona

FC Barcelona (FC Barcelona) was established in 1899 and ranks second in La Liga in 2021-22. The club's famous players include Alcantara, Samitier, Cruy Husband and so on. He has won 26 La Liga titles, 31 Copa del Rey, 5 Champions League trophies, etc. In the IFFHS international club rankings, FC Barcelona ranked first in 1997, 2009, 2011, 2012 and 2015. The club's Twitter account, FC Barcelona, has 44.5 million followers.

FC Barcelona Fan Token (BAR) was launched in June 2020 to provide holders with access to activities related to FC Barcelona The right to survey, and the chance to win unique prizes. Token holders use smart contracts to vote, and FC Barcelona must consider the voting results and implement the results; Fan Token serves as membership, providing holders with the opportunity to receive exclusive rewards and team recognition, rewards include game tickets, exclusive fan experience, Socios .com bonuses, club NFTs and digital badges. What's more, through BAR, members can purchase VIP goods/services, VIP tickets to enter stadiums and games, and rare collectibles; holders can also stake BAR to get NFT rewards, and can also access gamification programs.

As of October 25, 2022, BAR ranks 574 on CoinMarketCap, with a market cap of $20 million and a circulating supply of approximately 11.5%.

Picture description: FC Barcelona Fan Token price change trend (in recent March)

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Official website: FC BARCELONA 

Manchester City

Manchester City Football Club (Manchester City) was formerly known as St. Mark's Church established in 1880. It was changed to its current name in 1894. It ranks first in the 2021-22 Premier League. Famous players include Sterling, De Bruyne, and Phil Foden. He has won 8 English top league titles, 6 English FA Cup titles and 8 English League Cup titles. The club's Twitter account, Manchester City, has 13.9 million followers.

Manchester City Fan Token (CITY) was launched in March 2021, representing the ownership of voting rights and allowing holders to obtain Club specific rewards and experiences. For example, the holder can influence what the captain should wear on his armband, and can also visit the player's area of the stadium, or get the right to watch games in the VIP area and receive discounts on club merchandise; holders also have access to club governance shares; in addition, every club fan is eligible to receive a free Manchester City Token.

As of October 25, 2022, CITY ranks 513 on CoinMarketCap, with a market cap of $25 million and a circulating supply of approximately 21.6%.

Picture description: Manchester City Fan Token price change trend (in recent March)

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Official website: Manchester City F.C.Manchester City FC

AC Milan Football Club (A.C.Milan)

AC Milan Football Club (A.C.Milan), formerly known as the Milan cricket and football club established on December 16, 1899, ranks first in the 2021-22 Serie A , the club's famous players include Baresi, Tassotti, Abbiati and so on. He has won 7 Champions League titles, 19 Serie A titles, 5 Coppa Italia titles, 7 Italian Super Cup titles, 1 Club World Cup title and 5 UEFA Super Cup titles. The club's Twitter account, AC Milan, has 8.2 million followers.

A.C.Milan Fan Token (ACM) will be launched in January 2021, holders can enjoy various fans in AC Milan Vote in Decision Polls; Fan Rewards can be earned by taking quizzes, playing games and voting on club matters, including VIP access to all home league, cup and European competitions, watching matches with favorite club players, and even Fly with the team to the game.

As of October 25, 2022, ACM ranks 683 on CoinMarketCap with a market capitalization of $13 million and 4,147,212 ACMTokens circulating supply.

Image description: A.C.Milan Fan Token price change trend (in recent March)

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Official website: AC Milan  

Club Atltico de Madrid

Club Atltico de Madrid was established in 1903 and ranks third in La Liga in 2021-22. Famous players in the club include Felix and Griezmann. He has won 11 La Liga titles, 3 Champions League runner-ups, 3 Europa League titles, 3 European Super Cup titles, and 1 Intercontinental Cup title. The club's Twitter account, Atltico de Madrid, has 5.4 million followers.

Atletico De Madrid Fan Token (ATM) launched in January 2020, granting holders a vote for Atletico Madrid FC Right, as a collective Token holders can determine the development direction of the club from within the Socios application. For example, the first poll the club held asked which player should be in charge of managing the team's official Instagram account for a day, and for fans, taking part in such decisions is a way of bringing them closer to the team.

As of October 25, 2022, ATM ranks 762 on CoinMarketCap with a market cap of $9.2 million and 2,783,939 ATMTokens circulating supply.

Image description: Atletico De Madrid Fan Token price change trend (in recent March)

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Official website: Atletico De Madrid 

Sporting Club of Rome (AS Roma)

AS Roma was established in 1927 and ranks sixth in Serie A in 2021-22. Famous players in the club include Falcao and Mex, who have won 3 Serie A championships. The club's Twitter account, AS Roma, has 2.2 million followers.

AS Roma Fan Token (ASR) gives holders the right to influence decisions made by Roma Sporting Club, including renaming the training ground , choose which player takes over the Instagram account, leave a message on the wall of the stadium tunnel, choose a gift to give to the player, choose a celebration song, design a team bus for the new season, etc. In addition, holders also have the opportunity to win entry to the stadium and get discounts on merchandise s right.

As of October 25, 2022, ASR ranks 837 on CoinMarketCap, with a market capitalization of $7 million and 2,275,923 ASR tokens The circulating supply of cards.

Image description: AS Roma Fan Token price change trend (in recent March)

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Official website: Official AS Roma Website

Juventus

Juventus Football Club (Juventus) was established in 1897 and ranks fourth in Serie A in 2021-22. The famous players of the club include Ronaldo, Pirlo, Platini, etc., and have won 36 Serie A titles It is the team that has won the most Serie A championships, and is also the first club in history to achieve the "Grand Slam" of the three major cups (European Champions Cup, UEFA Cup and European Cup Winners' Cup). The club's Twitter account, JuventusFC, has 9.9 million followers.

Juventus Fan Token (JUV) was launched at the end of 2019, and holders can use smart contracts to issue numerous Juventus fans Vote on Decision Polls; fans can be rewarded by taking quizzes, playing games and voting on club decisions on the Socios.com app; fans can connect with like-minded people on the Socios platform and take community to the next level .

As of October 25, 2022, JUV ranks 690 on CoinMarketCap, with a market cap of $12.8 million and a circulating supply of approximately 17.0%.

Image description: Juventus Fan Token price change trend (nearly 3 months)

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Official website: Juventus Football Club 

Conclusion

From the above information, we can see that the value of these Tokens fluctuates greatly, not only related to the team's season performance, player transfers, etc., but also affected by the market and other major environments. Therefore, here R3PO would like to repeat the speech of Chiliz CEO Alexandre Dreyfus (Alexandre Dreyfus): "Fans Token is not an investment, its mission is to provide fans with service value." In R3PO's view, Token holders pay more attention to the digital services, voting rights and emotional value behind the Token. Although in practice, the value increase brought about by circulation will inevitably make some fans choose to sell their "rights", but R3PO believes that , On the road of pursuing profit, loyalty and mobility achieve each other and restrict each other. In addition to supporters, there are also many fans who believe that these Tokens are objectifying their emotions for the team, and then fiercely resist the club's attempt to digitize. In the final analysis, the original intention of sports encryption projects is to enable people to enjoy the joy of sports and competitions in a richer, more direct and more convenient way through technical means.

R3PO found that many sports Encrypted projects are taking advantage of the popularity of the "World Cup". Recently, SoccerCrypto released football games and NFTs; sports fan experience company Mercury raised $7.5 million in seed rounds; FIFA will partner with Algorand to launch an NFT series that showcases classic moments in World Cup history... However, all of this is building On top of the momentary hot spot, when the grand ceremony ends and the heat recedes, it is still unknown how much players and fans can stay. R3PO believes that for sports projects, there are unique conditions for exploring digital capitalization. They have rich experience in business operations, a complete professional path mechanism, a loyal and large fan base, and an open and positive attitude towards new things. It seems that they The barrier between web 3.0 and web 3.0 is only "digitalization", and "playing method" has become the core meaning of success. The major giants have already entered the arena. After the big test of the World Cup, who will win the first place, the situation may become clear.

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