Burgeoning blockchain-based, fan-engagement platform Socios.com recently exceeded $50M in market cap, generating millions in revenue for partners including Barcelona, Juventus and PSG. Socios allows fans to buy cryptocurrency-based "Fan Tokens" in return for voting rights in team-specific polls and the chance to win individual rewards. A limited supply of Fan Tokens are initially released for a set price in what’s called a Fan Token Offering -- Barcelona’s FTO sold out in less than two hours and generated the club $1.3M -- before being sold in larger quantities on the marketplace for a price determined by supply and demand. The LaLiga club's market cap to date is over $6M while Juventus and PSG are at over $12M and $11M, respectively.
Socios.com Founder & CEO Alexandre Dreyfus said the idea behind Fan Tokens is to give clubs a way to monetize their increasingly global and tech-oriented young fanbases in ways not currently possible through traditional revenue streams. “It’s really about a share of influence, the recognition of the fan. And how we commodify this,” Dreyfus said. He added that clubs have been especially receptive to Socios’ Fan Tokens model as a way to replace gameday revenues currently halted by the pandemic.
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Examples of Socios.com fan polls include Juventus fans choosing a new goal celebration song at the Allianz Stadium and Barcelona fans selecting artwork to be placed in the Camp Nou locker room. “This is the next generation of sports, it’s not just you watching on linear TV. It’s also you being part of the family, part of the community,” Dreyfus said.
Plans are already underway for Socios to expand to other parts of the globe, including the U.S. and Canada, Dreyfus said. The company recently partnered with UFC, and both parites are “working very hard” to launch a UFC Fan Token, for example. Dreyfus also said talks are ongoing with teams from some of the major U.S. pro leagues, including the NHL, and he hopes to have partnerships in place by the end of this year.
