..

Messi Joins Crypto Craze as He Receives Part of PSG Fee in Fan Tokens

Written by:
Reuters
Published on:
Aug/14/2021

MIAMI (Reuters) - Soccer star Lionel Messi's signing on fee at Paris St Germain includes some of the French club's cryptocurrency fan tokens, in the latest big name endorsement of new digital assets.

coinbase_0.gif

The Argentine, 34, left Spanish side Barcelona and signed a two-year contract with Qatari-owned Paris St Germain (PSG), with an option for a third year, on Tuesday.

Confirming an exclusive Reuters report, PSG said on Thursday the tokens were included in his "welcome package," 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 amount was "significant".

Fan tokens are a type of cryptocurrency that allow holders to vote on mostly minor decisions related to their clubs. Among clubs to launch tokens this year are English Premier League champions Manchester City and Italy's AC Milan. Messi's former club Barcelona launched one last year.

The tokens are increasingly seen by clubs as a source of new revenue and Socios.com, which provide the tokens for PSG and other top clubs, says tokens have generated nearly $200 million for its partner clubs in 2021, with PSG already seeing revenue from the Messi deal.

Like bitcoin and other digital currencies, fan tokens can be traded on exchanges. They also share in common with other cryptocurrencies a tendency for wild price swings, leading some regulators to issue warnings to investors about digital assets.

Still, several high profile business and entertainment figures have backed crypto assets, with Tesla (NASDAQ:TSLA) boss Elon Musk, Twitter founder Jack Dorsey and rapper Jay-Z among those to have shown support for bitcoin.

PSG said there had been high volume of trading in its fan tokens after reports that Messi was set to join the club.

Trading volumes exceeded $1.2 billion in the days preceding the arrival of the six-times winner of the Ballon d'Or world's best soccer player award, it said.

"We have been able to engage with a new global audience, creating a significant digital revenue stream," said Marc Armstrong, PSG's chief partnerships officer.

NEW TREND

The price of PSG's fan token rallied this week on rumours of the Messi deal, with new sales generating around 30 million euros and PSG taking an unspecified majority of that amount - at least 15 million euros, a source with knowledge of the matter said. PSG declined to comment.

Fan tokens' price moves can have little connection to on-field performance or results.

PSG's token, which has a market capitalisation of about $52 million, soared over 130% in just five days amid speculation over Messi's arrival to an all-time high of over $60 on Tuesday. They were last down 10% at about $40, according to the CoinMarketCap website.

Alexandre Dreyfus, the CEO of Socios.com, said PSG was benefitting from its token and other clubs could imitate its deal with Messi.

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

PSG have hoovered up domestic titles since their deep-pocketed owners, Qatar Sports Investment, took over in 2011. But they have never won Europe's prestigious and lucrative Champions League. Messi has won it four times, most recently in 2015.

The arrival of Barcelona's record scorer, with 672 goals, will boost PSG's ambitions and is expected to increase revenues from commercial deals and merchandise sales.

($1 = 0.8516 euros)

Business/Financial News

El Salvador President Trades Bitcoin Naked and Now Country is Left Exposed

El Salvador President Trades Bitcoin Naked and Now Country is Left Exposed

“El Salvador now has the most distressed sovereign debt in the world, and it’s because of the Bitcoin folly,” economist Steve Hanke told Fortune. “The markets think that Bukele’s gone mad, and he has.”

Cryptocurrency to be Spotlighted on Dr. Phil Tuesday: Scam or Not?

Cryptocurrency to be Spotlighted on Dr. Phil Tuesday: Scam or Not?

Dr. Phil tackles the controversial topic of cryptocurrency: digital currencies that are being hailed as the future of finance by some and a scam by others. This show airs on Tuesday in most markets.

Bitcoin Skids to Six-Month Low as Fears of Ukraine Conflict Shake Markets

Bitcoin Skids to Six-Month Low as Fears of Ukraine Conflict Shake Markets

Bitcoin tumbled almost 9% on Monday to its lowest in six months as fears of a Russian attack on Ukraine saw riskier assets worldwide extend their sell-off.

Bookies: You Don't Have to Meet Your Players to Pay Them Any More With This App

Bookie Agent App for Paying and Collecting Money Without Having to Meet Face to Face

Introducing Agent Payment 4K.  It's a complete player payment control app only available at Power Pay Per Head. 

The Fed May Create a US Digital Currency

The Fed May Create a US Digital Currency

The central bank just released a 40-page study on the benefits and risks of a central bank digital currency (CBDC).  The agency avoided taking any type of stance on the matter.

Syndicate