Crypto Tokenomics

¡GOOOOOOOOOOOOL! With approximately five billion cheering fans around the world, the World Cup is the most popular sporting event on the planet. Starting November 20th, this month-long event is officially sponsored by the world’s fastest-growing cryptocurrency platform, Crypto.com. Fortune may very well ‘favor the brave’ come November 20th when the tournament begins, as crypto companies unleash hundreds of millions of marketing dollars to attract more fans to the industry. This could be the shot-in-the-arm the industry needs as Bitcoin has floundered around 20K from its all-time high of $68.7K last November. 

The games will be held in Qatar, ironically an anti-crypto country, and although BTC has been down, there have been some bright spots for the so-called ‘fan tokens’ of crypto.  This is a burgeoning, niche market in the crypto industry with the largest market share going to Malta-based, Chiliz, who has partnerships with 65+ teams across 29 nationalities including some of the biggest names in sports & esports: FC Barcelona, Juventus, Paris Saint-Germain, Atlético de Madrid, AS Roma, AC Milan, and the UFC just to name a few.  Fans that buy and hold {HODL} their team tokens can actually vote on whatever decisions their team chooses to crowdsource­­­­­­ like merchandise ideas, jersey designs, future matchups, or even which players to be drafted onto the team. 

This is a major paradigm shift for the sports & entertainment industry; wherein, the fan is no longer a passive spectator but an active influencer.  And hey!, What fan wouldn’t want to vote on who joins the team or, say, the new team hoodie design.  This is a classic example of solid market research — poll the customers — and I believe the outcome will be stronger brand loyalty & higher team revenue.  It’s just a matter of time before all sports teams adopt ‘fan tokens’, as it provides deeper insight into what the spectators demand and an unprecedented way to connect & engage with the most fervent supporters.  And for the fans — that new $200 Barça hoodie (with the design they just voted on) might just be more affordable, given the sharp rise in token value based on the their team’s recent winning streak. Now how exciting is that … Web3 for the win!