Fan Tokens & the sport industry: key legal & commercial risks

What are the common features of the Caribbean Premier League, FC Barcelona, ​​Everton FC, Ultimate Fighting Championship (UFC), Aston Martin Cognisant Formula One Team? They recently launched their own fan token through Socios. com.

Fan Token has attracted a lot of attention in the sports world, but what is it, how it works, and what potential legal issues? In this article, we will introduce the technical and legal basis, especially the following points:

• What is a fan token and how it works?
• How are fan tokens purchased?
• Why do clubs sell fan tokens?
• Legal considerations for clubs
  • Commerce
  • IP
  • Company

  Please note that there are many important regulatory issues that the club should consider in addition to the legal considerations above. The regulation issues are out of the scope of this article, but will be considered in another article.

  What is a fan token & how does it work?

  Fan Token is explained as follows: "" Crystal currency that provides access to various member benefits, such as voting, rewards, goods design, and unique experiences to the club to the holders. One form (usually issued by a sports team) [1]. [1] Socio describes the fan token as "a digital asset that represents the ownership of voting rights and has access to gain clu b-specific rewards and experience." "[2]

  But to understand what fan tokens are and the potential legal issues involved, it is necessary to first understand the blockchain technology that the fan token depends on.

  Blockchain technology

  To put it simply, a blockchain technology is a system that records information in a way that is difficult to change the first input information. This is a digital ledger for transactions, and is essentially published (that is, anyone can download and verify) and update in a no n-centralized way. Therefore, the blockchain is called "consensus mechanism (agreement mechanism)". In the consensus mechanism, all people on the same network can cooperate and verify and update the data structure to agree on the next state of the network. The most common example of the consensus mechanism in the context of the blockchain is the Bitcoin's "proof of work" mechanism. In this mechanism, the published "minor" competes to consume energy and find the solution of the encryption puzzle, and the winner has added the next block (including verification transactions) to the Bitcoin blockchain. As a return, request a predetermined number of bitcoin.

  Socio/ Chiriz

  Socios. com is currently a major player in the Fan Token space (though not the only one). Socios. com has partnered with several national and international men’s football teams, including Liverpool FC, FC Barcelona and Paris Saint-Germain, each of which has its own Fan Token[3].

  The Fan Tokens exist on a blockchain called “Chiliz”[4] that Socios developed specifically for its sports fan engagement ecosystem. The Chiliz blockchain has a different consensus mechanism than Bitcoin and is based on “Proof-of-Authority”[5]. Proof-of-Authority is mostly used by private organizations with semi-closed or permissioned blockchains to make certain ecosystems smoother (mainly in terms of cost and speed). In the case of Chiliz, instead of the general public validating transactions and mining new blocks, member football clubs such as AC Milan and Paris Saint-Germain take on this role. This of course raises an interesting legal question: whether clubs incur additional regulatory obligations by validating these transactions. Chiliz’s ledger is still publicly available, and their blockchain explorer shows the entire history and processing of Fan Token transactions in real time. [6]

  How fan tokens are purchased

  Chiliz’s native cryptocurrency is “$CHZ”, which acts as the de facto currency in the Socios ecosystem, instead of traditional fiat currencies (such as government-backed currencies like GBP or USD). All purchases and sales of CHZ dollars (and/or Fan Tokens) are stored on the Chiliz blockchain in a verifiable and pseudonymous form with the buyer, seller, transaction amount and transaction time.

  Before purchasing Fan Tokens, consumers must first purchase $CHZ via the Socios website or a third-party cryptocurrency exchange. Once consumers have purchased CHZ dollars and added them to their Socios online wallet, they can participate in “Fan Token Offerings” (i. e. launches of new Fan Tokens) or purchase Fan Tokens through the trading feature within the Socios app. The number of Fan Tokens issued[7] (i. e. supply) will vary depending on the fanbase[8] of a club or tournament. However, in all cases, the total number of Fan Tokens will be capped [9] so that the number available on the market will never exceed the number of Fan Tokens initially created. The total supply caps can be found here [10] and here [11].

  The price of individual fan tokens will be determined by the club / tournament organizer at the time of fan token offering. After recruiting fan tokens, the prices of individual fan tokens are "determined by demand and supply." To sell fan tokens, the user draws a specific fan token on a thir d-party exchange that is listed on the fan token, and then listed on CHZ dollar (Binance, FTX, FTX. (Etc.), etc., you need to send the value of the CHZ dollar fan token to the currency selected by the user.

  Why are clubs selling fan tokens?

  As a result of the COVID-19, all match dates have been lost, and the club's balance sheet has been large holes, which is focused on maximizing commercial revenue. Details of Socio's revenue models have not been disclosed, but the purchase of fan tokens by Socio users will generate CHZ dollar income. Socio then converts the income obtained from the CHZ dollar into an agreed currency and pays to his partner in accordance with a fixed fe e-based or revenge share agreement.

  However, the club is currently starting to use other income sources that fan Token may provide. Socio signed a $ 24 million contract per season (about 2. 4 billion yen) as a fron t-shirt sponsor of the Internazionale. Valencia agreed in June 2021 the same front sponsor agreement as Socios.

  The club has also begun to provide Socios activation opportunities during the match. In August 2021, when FC Barcelona and Juventus participated in the pr e-season's friendly match, the captain of both clubs exchanged a fan token prize with the slogan of the club. [15]

  Many clubs have decided to have a partnership with Socios, stating that fans around the world, especially young fans, have the opportunity to get involved with the club in a new way that does not depend on the game. [16] According to Everton FC's statement, which announced a partnership with Socio, "it is an exciting business opportunity and a chance for supporters to approach the club." The important thing is that "this includes supporters from all over the world that has no opportunity to interact with soccer clubs." [17]

  Legal considerations for clubs

  The prices of each fan token are determined by each club / tournament organizer at the time of fan token offering. After recruiting fan tokens, the prices of individual fan tokens are "determined by demand and supply." To sell fan tokens, the user draws a specific fan token on a thir d-party exchange that is listed on the fan token, and then listed on CHZ dollar (Binance, FTX, FTX. (Etc.), etc., you need to send the value of the CHZ dollar fan token to the currency selected by the user.

  As a result of the COVID-19, all match dates have been lost, and the club's balance sheet has been large holes, which is focused on maximizing commercial revenue. Details of Socio's revenue models have not been disclosed, but the purchase of fan tokens by Socio users will generate CHZ dollar income. Socio then converts the income obtained from the CHZ dollar into an agreed currency and pays to his partner in accordance with a fixed fe e-based or revenge share agreement.

  However, the club is currently starting to use other income sources that fan Token may provide. Socio signed a $ 24 million contract per season (about 2. 4 billion yen) as a fron t-shirt sponsor of the Internazionale. Valencia agreed in June 2021 the same front sponsor agreement as Socios.

  The club has also begun to provide Socios activation opportunities during the match. In August 2021, when FC Barcelona and Juventus participated in the pr e-season's friendly match, the captain of both clubs exchanged a fan token prize with the slogan of the club. [15]

  Many clubs have decided to have a partnership with Socios, stating that fans around the world, especially young fans, have the opportunity to get involved with the club in a new way that does not depend on the game. [16] According to Everton FC's statement, which announced a partnership with Socio, "it is an exciting business opportunity and a chance for supporters to approach the club." The important thing is that "this includes supporters from all over the world that has no opportunity to interact with soccer clubs." [17]

  The price of each commercial individual fan token is determined by the club / tournament organizer at the time of fan token offering. After recruiting fan tokens, the prices of individual fan tokens are "determined by demand and supply." To sell fan tokens, the user draws a specific fan token on a thir d-party exchange that is listed on the fan token, and then listed on CHZ dollar (Binance, FTX, FTX. (Etc.), etc., you need to send the value of the CHZ dollar fan token to the currency selected by the user.

  As a result of the COVID-19, all match dates have been lost, and the club's balance sheet has been large holes, which is focused on maximizing commercial revenue. Details of Socio's revenue models have not been disclosed, but the purchase of fan tokens by Socio users will generate CHZ dollar income. Socio then converts the income obtained from the CHZ dollar into an agreed currency and pays to his partner in accordance with a fixed fe e-based or revenge share agreement.

  However, the club is currently starting to use other income sources that fan Token may provide. Socio signed a $ 24 million contract per season (about 2. 4 billion yen) as a fron t-shirt sponsor of the Internazionale. Valencia agreed in June 2021 the same front sponsor agreement as Socios.

  The club has also begun to provide Socios activation opportunities during the match. In August 2021, when FC Barcelona and Juventus participated in the pr e-season's friendly match, the captain of both clubs exchanged a fan token prize with the slogan of the club. [15]

  Many clubs have decided to have a partnership with Socios, stating that fans around the world, especially young fans, have the opportunity to get involved with the club in a new way that does not depend on the game. [16] According to Everton FC's statement, which announced a partnership with Socio, "it is an exciting business opportunity and a chance for supporters to approach the club." The important thing is that "this includes supporters from all over the world that has no opportunity to interact with soccer clubs." [17]

  Commerce

  Legal issues for players / agents

  If the partnership agreement with Socio (or other fan token providers) and conclude a partnership agreement, the club has a new revenue source or opportunity provided by Socio applies to either existing partnership contracts. It is necessary to consider whether or not. Among the rights that Socio will be granted, other sponsors, especially the betting partner, and the investment/ cryptocurrency partner like ETORO (the company has already signed a contract with many soccer clubs in Europe. [18]) may have already been monopolized. Clubs and their legal teams need to carefully consider the exclusive clauses in the partnership agreement and the attempts to define the cryptocurrency sector as part of the competitors list.

  It is also worth not only soccer clubs that have a partnership contract with Socios. The domestic association, including the Portugal and the Argentina soccer association, has a partnership agreement with Socios. Considering the corporate structure of these domestic associations, it will be necessary to further consider what rights the association can give Socios. Similar debate applies to no n-socce r-like private organizations and cricket franchise teams such as the Indian Premier League Royal Challeners Bangarol, and has a relationship with Socios to existing commercial contracts. You will need to consider the potential impact.

  The financial status of the fan token will also need to be considered before the club signs a contract. Considering that the history of fan tokens is still shallow, fan token providers are, of course, new businesses that have no traditional means of evaluating financial status. The club needs to examine whether to pay for the safety of payment to the fan token provider before the contract concludes the contract.

  The fans’ perspective

  intellectual property

  For both Socio and the club, it is essential for consumers to recognize the connection between the club and the fan token. Socio usually uses the trademark name of the club when referring to a specific fan token in marketing, and also uses the club logo on websites and social media channels. < SPAN> If the partnership agreement with Socio (or other fan token providers) and conclude a partnership agreement, the club has a new revenue source or opportunity provided by Socio to either the existing partnership agreement. It is necessary to consider whether or not it is. Among the rights that Socio will be granted, other sponsors, especially the betting partner, and the investment/ cryptocurrency partner like ETORO (the company has already signed a contract with many soccer clubs in Europe. [18]) may have already been monopolized. Clubs and their legal teams need to carefully consider the exclusive clauses in the partnership agreement and the attempts to define the cryptocurrency sector as part of the competitors list.

  1. It is also worth not only soccer clubs that have a partnership contract with Socios. The domestic association, including the Portugal and the Argentina soccer association, has a partnership agreement with Socios. Considering the corporate structure of these domestic associations, it will be necessary to further consider what rights the association can give Socios. Similar debate applies to no n-socce r-like private organizations and cricket franchise teams such as the Indian Premier League Royal Challeners Bangarol, and has a relationship with Socios to existing commercial contracts. You will need to consider the potential impact.
  2. The financial status of the fan token will also need to be considered before the club signs a contract. Considering that the history of fan tokens is still shallow, fan token providers are, of course, new businesses that have no traditional means of evaluating financial status. The club needs to examine whether to pay for the safety of payment to the fan token provider before the contract concludes the contract.
  3. intellectual property

  Conclusion

  For both Socio and the club, it is essential for consumers to recognize the connection between the club and the fan token. Socio usually uses the trademark name of the club when referring to a specific fan token in marketing, and also uses the club logo on websites and social media channels. If the partnership agreement with Socio (or other fan token providers) and conclude a partnership agreement, the club has a new revenue source or opportunity provided by Socio applies to either existing partnership contracts. It is necessary to consider whether or not. Among the rights that Socio will be granted, other sponsors, especially the betting partner, and the investment/ cryptocurrency partner like ETORO (the company has already signed a contract with many soccer clubs in Europe. [18]) may have already been monopolized. Clubs and their legal teams need to carefully consider the exclusive clauses in the partnership agreement and the attempts to define the cryptocurrency sector as part of the competitors list.

  It is also worth not only soccer clubs that have a partnership contract with Socios. The domestic association, including the Portugal and the Argentina soccer association, has a partnership agreement with Socios. Considering the corporate structure of these domestic associations, it will be necessary to further consider what rights the association can give Socios. Similar debate applies to no n-socce r-like private organizations and cricket franchise teams such as the Indian Premier League Royal Challeners Bangarol, and has a relationship with Socios to existing commercial contracts. You will need to consider the potential impact.

  The financial status of the fan token should also be considered before the club signs a contract. Considering that the history of fan tokens is still shallow, fan token providers are, of course, new businesses that have no traditional means of evaluating financial status. The club needs to examine whether to pay for the safety of payment to the fan token provider before the contract concludes the contract.

  intellectual property

  For both Socio and the club, it is essential for consumers to recognize the connection between the club and the fan token. Socio usually uses the trademark name of the club when referring to a specific fan token in marketing, and also uses the club logo on websites and social media channels.

  When entering into partnership agreements with members, clubs are likely to apply strict restrictions on how members can use their intellectual property. If the master agreement with a member ends, so too would the license granted to the member to use the club's intellectual property. For example, if Manchester City were to end its relationship with a member, would the member still be able to sell the tokens as "Manchester City Fan Tokens" and use the Manchester City badge on its website? If not, this would likely impact the value of the Fan Tokens. Similarly, if the club were to declare bankruptcy or go into receivership, the value of the Fan Tokens would likely be affected.

  Revisiting the Manchester City example, would there be any restrictions on the club changing Fan Token providers and taking the Fan Tokens with them as they dissolve their relationship with the existing provider? Again, there are no test cases like this yet, but the club, as producers of blocks on the Chiliz Blockchain, is essentially a part-owner of the Fan Tokens and (at least in theory) would be less likely to shop around for a different Fan Token provider. The club could potentially re-issue the Fan Tokens on the new blockchain, 1:1 with the value stated on the previous provider. It will be interesting to see how clubs approach this issue as the Fan Token market develops over time.

  Corporate

  The club also needs to examine the potential impact on the basic constitution of the club in light of the rights to give to the owner of the fan token. If a fan purchases a club shares (regardless of whether it is the club supporter), the fans will be the right to exercise certain rights in connection with the club. However, British laws have shown that the club changes these rights if the club is stepped on a specific procedure. At present, Token holders have not given any rights in their relationship with the club. However, as the fan token model continues to evolve, the club may consider this possibility, and the club and lawyers also need to consider the impact on the clar incorporation documents. If a specific club decides to give the owner of the fan token to give a specific voting rights regarding the transfer policy of the player, this may be within the rules and regulations of thir d-party ownership.

  Unlike the club owner of the club's shares, the owner of the fan token does not guarantee the voting rights just to own a fan token. As far as I know, the number of voting rights given to the owner of the fan token or category is guaranteed. Therefore, even if the club issues a fan token, the owner of the fan token may not be able to utilize its value and influence.

  If the number of clubs affiliated with Socio continues to increase, the club will be more likely to propose a player in the form of a fan token for paying salaries, transfer money, and performanc e-related bonuses. When Lionel Messi moved to Paris Sain t-Germain, he was paid a part of the PSG Fan Token. This special transfer has been one of the most notable transfers in recent years, but it has become a precedent for players and agents to pay (at least partially) in fan tokens and other formal cryptocurrencies. There is a possibility.

  From a regulation perspective, it is unknown how such payments are classified under financial fair play regulations. < SPAN> Club also needs to consider the potential impact on the basic constitution of the club in light of the rights to give to the owner of the fan token. If a fan purchases a club shares (regardless of whether it is the club supporter), the fans will be the right to exercise certain rights in connection with the club. However, British laws have shown that the club changes these rights if the club is stepped on a specific procedure. At present, Token holders have not given any rights in their relationship with the club. However, as the fan token model continues to evolve, the club may consider this possibility, and the club and lawyers also need to consider the impact on the clar incorporation documents. If a specific club decides to give the owner of the fan token to give a specific voting rights regarding the transfer policy of the player, this may be within the rules and regulations of thir d-party ownership.

  Unlike the club owner of the club's shares, the owner of the fan token does not guarantee the voting rights just to own a fan token. As far as I know, the number of voting rights given to the owner of the fan token or category is guaranteed. Therefore, even if the club issues a fan token, the owner of the fan token may not be able to utilize its value and influence.

  If the number of clubs affiliated with Socio continues to increase, the club will be more likely to propose a player in the form of a fan token for paying salaries, transfer money, and performanc e-related bonuses. When Lionel Messi moved to Paris Sain t-Germain, he was paid a part of the PSG Fan Token. This special transfer has been one of the most notable transfers in recent years, but it has become a precedent for players and agents to pay (at least partially) in fan tokens and other formal cryptocurrencies. There is a possibility.

  From a regulation perspective, it is unknown how such payments are classified under financial fair play regulations. The club also needs to examine the potential impact on the basic constitution of the club in light of the rights to give to the owner of the fan token. If a fan purchases a club shares (regardless of whether it is the club supporter), the fans will be the right to exercise certain rights in connection with the club. However, British laws have shown that the club changes these rights if the club is stepped on a specific procedure. At present, Token holders have not given any rights in their relationship with the club. However, as the fan token model continues to evolve, the club may consider this possibility, and the club and lawyers also need to consider the impact on the clar incorporation documents. If a specific club decides to give the owner of the fan token to give a specific voting rights regarding the transfer policy of the player, this may be within the rules and regulations of thir d-party ownership.

  Unlike the club owner of the club's shares, the owner of the fan token does not guarantee the voting rights just to own a fan token. As far as I know, the number of voting rights given to the owner of the fan token or category is guaranteed. Therefore, even if the club issues a fan token, the owner of the fan token may not be able to utilize its value and influence.

  If the number of clubs affiliated with Socio continues to increase, the club will be more likely to propose a player in the form of a fan token for paying salaries, transfer money, and performanc e-related bonuses. When Lionel Messi moved to Paris Sain t-Germain, he was paid a part of the PSG Fan Token. This special transfer has been one of the most notable transfers in recent years, but it has become a precedent for players and agents to pay (at least partially) in fan tokens and other formal cryptocurrencies. There is a possibility.

  From a regulation perspective, it is unknown how such payments are classified under financial fair play regulations.

  Players and agents need to know how the fan token will affect the rewards that will be received as part of the transfer. When athletes negotiate separately for portrait rights through the transfer destination club and a portrait rights company / loan out venture, they are generally paid by reveng e-share agreements with the club or a fixed remuneration agreement. The revenge share and fixed reward payments may be paid to players by fan token and other cryptocien assets, and it is necessary for players and their agents to take tax care.

  The basic principle is that owning a fan token can vote for specific things related to the club. The content that the token owner can vote is different for each club, but the music that the team has scored after the team scored the goal in the home match, the design of the club's social media pages, and the club's social media activities were taken over for a short period of time. The theme tends to focus on theme. For example, when FC Barcelona launched a fan token in June 2020, the token owner was able to submit a mural design on the dressing room of the Kump. Later, the top four designs were voted by the owner of the FC Barcelona fan token, and their favorite design was selected. [20] Similarly, the owner of the Paris Sain t-Germain's fan token was able to vote for a new crown design installed at the top of the team's stadium, Park de Plan.

  However, the introduction of fan tokens is not particularly reputable among fans of the Premier League club, which recently concluded a partnership with Socios. Westham United's supporters worked on the club to resolve the relationship with Socio [22], Arsenal FC [23] and Leed United's supporters Trust, the club has concluded Socio. The same reaction was shown. The official statement of supporters Trust, which opposes the Premier League club partners with Socios, has some common themes: < SPAN> players and agents are part of the transfer of fan tokens. You need to know how it will affect the reward you will receive. When athletes negotiate separately for portrait rights through the transfer destination club and a portrait rights company / loan out venture, they are generally paid by reveng e-share agreements with the club or a fixed remuneration agreement. The revenge share and fixed reward payments may be paid to players by fan token and other cryptocien assets, and it is necessary for players and their agents to take tax care.

  The basic principle is that owning a fan token can vote for specific things related to the club. The content that the token owner can vote is different for each club, but the music that the team has scored after the team scored the goal in the home match, the design of the club's social media pages, and the club's social media activities were taken over for a short period of time. The theme tends to focus on theme. For example, when FC Barcelona launched a fan token in June 2020, the token owner was able to submit a mural design on the dressing room of the Kump. Later, the top four designs were voted by the owner of the FC Barcelona fan token, and their favorite design was selected. [20] Similarly, the owner of the Paris Sain t-Germain's fan token was able to vote for a new crown design installed at the top of the team's stadium, Park de Plan.

  However, the introduction of fan tokens is not particularly reputable among fans of the Premier League club, which recently concluded a partnership with Socios. Westham United's supporters worked on the club to resolve the relationship with Socio [22], Arsenal FC [23] and Leed United's supporters Trust, the club has concluded Socio. The same reaction was shown. The official statement of the supporters Trust, which is opposed by the Premier League club's partnership with Socios, has several common themes: players and agents will receive a fan token as part of the transfer. You need to know how it will affect some rewards. When athletes negotiate separately for portrait rights through the transfer destination club and a portrait rights company / loan out venture, they are generally paid by reveng e-share agreements with the club or a fixed remuneration agreement. The revenge share and fixed reward payments may be paid to players by fan token and other cryptocien assets, and it is necessary for players and their agents to take tax care.

  The basic principle is that owning a fan token can vote for specific things related to the club. The content that the token owner can vote is different for each club, but the music that the team has scored after the team scored the goal in the home match, the design of the club's social media pages, and the club's social media activities were taken over for a short period of time. The theme tends to focus on theme. For example, when FC Barcelona launched a fan token in June 2020, the token owner was able to submit a mural design on the dressing room of the Kump. Later, the top four designs were voted by the owner of the FC Barcelona fan token, and their favorite design was selected. [20] Similarly, the owner of the Paris Sain t-Germain's fan token was able to vote for a new crown design installed at the top of the team's stadium, Park de Plan.

  However, the introduction of fan tokens is not particularly reputable among fans of the Premier League club, which recently concluded a partnership with Socios. Westham United's supporters worked on the club to resolve the relationship with Socio [22], Arsenal FC [23] and Leed United's supporters Trust, the club has concluded Socio. The same reaction was shown. The official statement of the supporters Trust, which opposes the Premier League club partners with Socios, has some common themes:

  • In the eyes of these fan groups, the aim of the partnership is to monetize supporter engagement – ​​something the clubs should do for free. 25] Monetizing supporter engagement is not something Chiliz/Socios is ruling out. Chiliz describes its platform as providing “Sports & Entertainment entities with blockchain-based tools to help them engage and monetize their audience.” [26] ;
  • The majority of Premier League fans lack understanding of cryptocurrencies as an unregulated product, which some consider vulnerable: "Fans must also participate in the cryptocurrency ecosystem. If football chooses to introduce unregulated cryptocurrencies into the game, we believe that clubs should provide education and guidance on the purpose and risks. "27].
  • Socio users do not have to be fans of the teams they purchase Fan Tokens for. For example, there is nothing preventing a socio user from purchasing Fan Tokens for Paris Saint-Germain, Leeds United and the Portugal Men's Football National Team and exercising their voting rights in respect of the respective tokens, despite not being a fan of these teams.

  Wiggin's expertise, delivered direct to you

  The emergence of Fan Tokens is still relatively early in the sports industry, so it is certainly an area that clubs, fans, players and agents will need to keep an eye on.

  • As clubs respond to COVID-19, As sports try to recover from losses caused by the COVID-19 pandemic, new revenue streams like Fan Tokens will become increasingly attractive.
  • However, it remains to be seen how sports regulation will respond to the legal challenges posed by Fan Tokens, and how national governments and regulators will address the growing popularity of consumer crypto products in the sports world.
  • References
  • [1] Kevin Dwyer, 'What Are Fan Tokens', Coin Market Cap, published August 2021, last viewed on 4 November 2021, https://coinmarketcap. com/alexandria/article/what-are-fan-tokens

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  [3] 'Tokens', Explorer. Chiliz, last viewed on 4 November 2021, https://explorer. chiliz. com/tokens

  [4] Technically it is a Proof-of-Authority sidechain on the Ethereum blockchain.

  Necessary Cookies

  [6] 'Blocks', Explorer. Chiliz, Last viewed November 4, 2021, https://explorer. chiliz. com/blocks [10] See footnote 3 [11] 'Today's Fan Token Prices by Market Cap', Fan Market Cap, Last viewed November 4, 2021, https://www. fanmarketcap. com/ [12] See footnote 8

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  [13] Daniele Proch, 'Socios. com Replace Pirelli As Front-Jersey Sponsor Of Serie A Champions Inter Milan', Forbes, published 21 July 2021, last viewed 4 November 2021、

  [14] 'Valencia CF $VCF Fan Token To Take Front of Shirt Space In World First As Club Joins Socios. Com Network', Socios. com, published 18 June 2021, last viewed 4 November 2021, https://www. socios. com/valencia-cf-vcf-fan-token-to-take-front-of-shirt-space-in-world-first-as-club-joins-socios-com-network/.

  [15] Joey D'Urso、「特別調査： Socios 'fan tokens' - what they really are and how they work', The Athletic, published 18 August 2021, last viewed 4 November 2021, https://theathletic. com/2774492/2021/08/18/investigation-socios-fan-tokens-what-they-really-are-and-how-they-work/.

  [16] '$EFC Fan Token', Everton FC, 最終閲覧日：2021 年 11 月 4 日, https://www. evertonfc. com/fantoken
  • [18] 'eToro set to dominate football with twelve new sponsorships in UK and Germany', eToro, published 17 September 2020, last viewed 4 November 2021, https://www. etoro. com/news-and-analysis/etoro-updates/etoro-set-to-dominate-football-with-twelve-new-sponsorships-in-uk-and-germany/
  • [19] 'パリ・サンジェルマン、ファン・トークンを使用した初の選手サイン会を実施', Socios. com、2021 年 8 月 12 日掲載、最終閲覧 2021 年 11 月 4 日, https://www. socios. com/paris-saint-germain-concludes-first-player-signing-featuring-fan-tokens/
  • [20] '本日より、バルサファンはクラブアンケートに参加するための最初のファン・トークンを手に入れることができる', FC Barcelona, 22 June 2021, last viewed 4 November 2021, https://www. fcbarcelona. com/en/club/news/1691593/from-today-barca-fans-can-get-the-first-fan-tokens-to-take-part-in-club-surveys
  • [21] Socios, 'PSG - New design of Parc Des Princes Stadium decided by fans', YouTube, published 15 October 2021, last viewed 4 November 2021, https://www. youtube. com/watch? v=F0o6RmpoQI0
  [18] 'eToro set to dominate football with twelve new sponsorships in UK and Germany', eToro, published 17 September 2020, last viewed 4 November 2021, https://www. etoro. com/news-and-analysis/etoro-updates/etoro-set-to-dominate-football-with-twelve-new-sponsorships-in-uk-and-germany/

  [23] 'Arsenal's partnership with Cryptocurrency company Socios. com', Arsenal Trust, published 12 August 2021, last viewed 4 November 2021, https://www. arsenaltrust. org/feed/news/2021/AST-Socios-Cryptocurrency

  [19] 'パリ・サンジェルマン、ファン・トークンを使用した初の選手サイン会を実施', Socios. com、2021 年 8 月 12 日掲載、最終閲覧 2021 年 11 月 4 日, https://www. socios. com/paris-saint-germain-concludes-first-player-signing-featuring-fan-tokens/

  [25] 脚注 19 参照

  [27] 脚注 21 参照 [20] '本日より、バルサファンはクラブアンケートに参加するための最初のファン・トークンを手に入れることができる', FC Barcelona, 22 June 2021, last viewed 4 November 2021, https://www. fcbarcelona. com/en/club/news/1691593/from-today-barca-fans-can-get-the-first-fan-tokens-to-take-part-in-club-surveys

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  Blockchain and digital assets

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  [27] 脚注 21 参照

  Privacy policy

  [21] Socios, 'PSG - New design of Parc Des Princes Stadium decided by fans', YouTube, published 15 October 2021, last viewed 4 November 2021, https://www. youtube. com/watch? v=F0o6RmpoQI0

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  Privacy and Cookies Policy

  Scope

  • This Privacy Policy explains how Wiggin collects and uses your personal data. All our data processing is in accordance with our obligations under the EU General Data Protection Regulation (GDPR) and the Data Protection Act 2018.
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  • This notice tells you what personal data Wiggin collects, why we need it, how we use it and what safeguards are in place to keep it safe.
  • Key terms
  • Wiggin, we, us means or refers to Wiggin LLP, a limited liability partnership with registration number OC308767 and registered office at Jessop House, Jessop Avenue, Cheltenham, Gloucestershire GL50 3WG, UK. Wiggin is registered with the Information Commissioner's Office as a data controller, registration number Z5732337.
  • Personal data means information about an individual (including you) and information that identifies such an individual.

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  If you provide information about others (your officials, directors, employees, or those in a business relationship with you), you have the right to disclose the information to us, and we. It is necessary to make sure that the person understands that the information may be processed according to this notification without taking the above measures.

  What is the personal data that Wiggin collects from customers (and customers)?

  When we collect and use personal data for customers, the types of data to be collected vary depending on the status and purpose of the processing. Here are some examples of exemplified and no n-comprehensive:

  Personal data about you: Name, address, date of birth, spouse's presence, nationality, gender, desired language, job type, work life, resumes, or/ or necessary accommodations, in some cases Personal data about family life;

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  • To conduct surveys, risk evaluation, and custom customers;
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  To enable information exchange between related companies and related businesses of Wijin and Wijin.

  In addition, we may process your personal data for business management, which is likely to use your personal data in one or more (no n-paralyzed) methods:

  Contracts and contacts with suppliers

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  To implement marketing and general business development activities;

  To carry out i n-house reviews, surveys, and audits;

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  To measure performance and improve our services

  Compliance with laws and regulations and related reports

  Crime prevention and discovery

  What is the legal basis for Wiggin to process your personal data?

  Under the GDPR, we must identify the legal basis for processing your personal data, but the basis is the type of personal data to be processed, and the associated individuals. It may vary depending on the nature of the processing.

  Performing a contract with the customer (if applicable)

  In the case of a personal customer, personal supplier, or other individuals who have a direct contract with us, we will handle the personal data necessary to fulfill the obligations based on the customer.

  Wiggin or a legitimate profit for third parties

  We may process your personal data based on the legal basis of our legitimacy and/ or the legitimate interests of a third party. This is mainly applied when our office provides legal advice and services to the client. In such a case, our legitimate interests are to properly implement the role as the official and regulatory provider of legal services. The client of our office also has the legal benefit (and more legal rights) of gaining legal advice and services.

  Our extent of our provision of legal services, which is the basis for handling customer personal information, and the benefits of our clients, such as receiving such services, include: It can be divided into more individual categories:

  Contacting individuals in connection with our work and our clients' matters, which may involve the use of your personal data;

  Reviewing documents and communications disclosed to us, our clients and third parties which may contain your personal data;

  Reviewing and analysing evidence available to us and our clients which may contain your personal data;

  Preparing legal arguments, documents and communications which may contain your personal data;

  • Disclosing documents and communications which may contain your personal data to various parties in furtherance of our clients' objectives;
  • Giving instructions to third parties on behalf of our clients;

  Accepting payments from and facilitating payments to our clients and third parties.

  To enable all of the above, managing and storing your personal data securely within our IT environment and hardcopy filing systems.

  This includes (but is not limited to) recruiting suppliers and supplier personnel, interviewing prospective staff, ensuring the safety and efficiency of our systems and facilities, complying with regulations and legal requirements, related audits and reporting, marketing and general business development purposes, insurance purposes, facilitating, making and receiving payments and recovering monies owed to us.

  We believe that the processing of your personal data based on our legitimate interests as described above is not likely to unduly prejudice your rights and freedoms or your own legitimate interests, and we regularly review our systems and processes to ensure that this remains the case.

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  • For more information on the legal basis of personal data processing, please contact the Information Commissioner Secretariat's website (see below) or our data protection manager (details below).
  • Special category personal data
  • To handle the personal data of your race or ethnicity, political opinions, religious and philosophical beliefs, unions, health data, biological certification data, or sexual orientation data. Unless it is obligatory by law (for example, when it is processed for the exercise or defense of a legal claim), or when information is needed to protect the health of the customer in an emergency, from customers. It shall have explicit consent. If we are processing personal data based on your consent, you will always send it to us by sending a dataprotection@wiggin. co. uk, a specific consent you want to withdraw. You have the right to withdraw consent.

  Disclosure of personal information

  • Our personal data is a staff or an employer or agent of the customer or customer, or / customer or customer, in the Wiggin LLP and (applicable) related establishments. Disclosure to other staff in which people come in contact.
  • The office may disclose your personal data to third parties (external Wiggin), but will disclose the confidentiality of our office only if disclosure is required. Such recipients include other clients and contacts, joint lawyers, other clerks, court lawyers / court lawyers / experts / foreign law firms, our insurance brokers and underwriting. Other people, banks, auditors and accounting accounting, debt collection companies, our consignment IT providers and other suppliers, HMRC, lawyer regulations, the Ministry of Home, HM Passport Bureau, and / or / or / or specific projects It includes the parties (ordinary people and administrative lawyers), but are not limited.
  • In addition, the company's consultant, Brussels Office, and our related businesses (including Incopro, Overmorrow, Reviewed & Amp; Cleared) Information You may need to disclose it.

  Your personal data may be disclosed to one or more thir d-party service providers that provide IT and other technical services to the Company, and these service providers are as data processors under our management. It works. If the stakeholders are a data processor, we will introduce appropriate data security systems and take appropriate measures that are obliged by law to process data only according to our instructions.

  Is your personal data transferred outside the EEA area? In that case, what kind of protection measures are taken?

  Some of the thir d-party service providers used and some of our consultants are based in European economic regions (EEAs) or in the European economic area (EEA). Until the BREXIT migration period ends on December 31, 2020, there is no addition to additional protection measures for data transfer with the EEA. Some of the thir d-party service providers used and some of our consultants are based in the UK and outside the EEA, or in the UK and outside the EEA. When the latter service provider processes personal data in the process of providing services to the Company, the standard provisions approved by the European Commission to meet the security standard required within the EU). It is sometimes called in the contract with us). You can see the European Commission's decisions including these standard clause from this link: http://eur-rex. Europa. eu/legal-content/en/txt/pdf/? uRi=celexens:32010D008777kaku; From = en. In response to the decision of the European Committee (CJEU) in the Schlemus II case, we have determined that the US/EU Privacy Shield does not provide sufficient protection to personal data transferred to the United States. Even if data is monitored a case where data is relocated to the United States, such relocation is based on the related EU model clause, it will bring serious risks to your rights and freedom. I have confirmed it. If so, we promise to make necessary changes.

  Regarding the protection of personal information < SPAN> Your personal data may be disclosed in one or more thir d-party service providers that provide IT and other technical services to us, and these service providers are our company. It functions as a data processor under the management of. If the stakeholders are a data processor, we will introduce appropriate data security systems and take appropriate measures that are obliged by law to process data only according to our instructions.

  Is your personal data transferred outside the EEA area? In that case, what kind of protection measures are taken?

  Some of the thir d-party service providers used and some of our consultants are based in European economic regions (EEAs) or in the European economic area (EEA). Until the BREXIT migration period ends on December 31, 2020, there is no addition to additional protection measures for data transfer with the EEA. Some of the thir d-party service providers used and some of our consultants are based in the UK and outside the EEA, or in the UK and outside the EEA. When the latter service provider processes personal data in the process of providing services to the Company, the standard provisions approved by the European Commission to meet the security standard required within the EU). It is sometimes called in the contract with us). You can see the European Commission's decisions including these standard clause from this link: http://eur-rex. Europa. eu/legal-content/en/txt/pdf/? uRi=celexens:32010D008777kaku; From = en. In response to the decision of the European Committee (CJEU) in the Schlemus II case, we have determined that the US/EU Privacy Shield does not provide sufficient protection to personal data transferred to the United States. Even if data is monitored a case where data is relocated to the United States, such relocation is based on the related EU model clause, it will bring serious risks to your rights and freedom. I have confirmed it. If so, we promise to make necessary changes.

  Fan Tokens and SportsFi: Alexandre Dreyfus – Ep. 89

  Personal information protection may be disclosed to one or more thir d-party services providers that provide IT and other technical services to the Company, and these service providers are under our management. Works as a data processor. If the stakeholders are a data processor, we will introduce appropriate data security systems and take appropriate measures that are obliged by law to process data only according to our instructions.

  Public Key Episode 89: Fan Tokens are newest way to engage fans of major sporting teams on the blockchain

  Is your personal data transferred outside the EEA area? In that case, what kind of protection measures are taken?

  Some of the thir d-party service providers used and some of our consultants are based in European economic regions (EEAs) or in the European economic area (EEA). Until the BREXIT migration period ends on December 31, 2020, there is no addition to additional protection measures for data transfer with the EEA. Some of the thir d-party service providers used and some of our consultants are based in the UK and outside the EEA, or in the UK and outside the EEA. When the latter service provider processes personal data in the process of providing services to the Company, the standard provisions approved by the European Commission to meet the security standard required within the EU). It is sometimes called in the contract with us). You can see the European Commission's decisions including these standard clause from this link: http://eur-rex. Europa. eu/legal-content/en/txt/pdf/? uRi=celexens:32010D008777kaku; From = en. In response to the decision of the European Committee (CJEU) in the Schlemus II case, we have determined that the US/EU Privacy Shield does not provide sufficient protection to personal data transferred to the United States. Even if data is monitored a case where data is relocated to the United States, such relocation is based on the related EU model clause, it will bring serious risks to your rights and freedom. I have confirmed it. If so, we promise to make necessary changes.

  Quote of the episode

  About protection of personal information

  Minute-by-minute episode breakdown

  • We have a strong security system to prevent unauthorized access, use, tampering, destruction, or accidental loss on your personal data. We take appropriate technical and organizational security measures so that those who are not allowed to access the personal data held by the Company, especially those who are not allowed to access. The rules and procedures to do, and if applicable, ensure your confidentiality. The Company will define the information security policy that sets security standards used to protect your personal data, and strictly comply with it.
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  • How long will your personal data be stored in Wiggin?
  • The Company plans to process your personal data beyond the required period for specific purposes described in this notification. However, for example, if it is required by our legal and regulated obligations, or in order to secure an effective IT backup system, we may be obliged to keep your personal data for a long time. 。 In this case, the Company guarantees that your personal data will continue to be handled according to this notification, limit access to archived personal data, keeps all personal data safely, and maintains confidentiality. I will guarantee that.
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  • Based on the Data Protection Law, there are various rights about personal data. The British Information Committee Secretariat's website provides useful summaries on your rights and can be accessed here (https://ico. org. uk/your-data-matters/). In particular, customers have the following rights:
  • Right to access the copy of your personal data;
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  • Also, in a specific situation, we may have the following rights for your personal data:
  • Right to limit or oppose the use of your personal data by our company;

  Speakers on today’s episode

  • The right to request us to provide a copy of your personal data to others
  • The right to demand the erasure of your personal data.

  If you wish to exercise your rights, please contact our data protection manager (dataprotection@wiggin. co. uk).

  There are exceptions to personal rights for personal data, especially when we process customer personal data for the purpose of providing legal advice to clients, the rights of customers may be limited. Our firm always respects your personal data and strives to ensure transparency as much as possible, but in some cases it is legal to allow our office to handle your personal data. Please note that it may be limited.

  How to file a complaint

  If you have any questions about the information described in this notification or if you have any concerns or complaints about how to handle your personal data, please contact our data protection manager (dataprotection@wiggin. uk). Please contact us. In any case, you have the right to complain with the information commissioner. The contact information of the information commissioner is as follows: -

  INFORMATION Commissioner's Office, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5af www. ico. org. uk. The ICO's help line number is 0303 123 1113.

  Last update: September 28, 2021

  Click here for episode 89 of Public Key podcast. Fan Token and Sportsfi may be a very new term for people in the cryptocien industry. In this episode, how the world's largest sports brand adopts blockchain technology in Alexander Drefus (Socios. com + Chiliz CEO), accelerating fans engagement through fan tokens, the latest phenomena of cipher. I will explain if you are. Please listen to Spotify, Apple, or Audible now or subscribe. Click here for all previews of Episode 89.

  Fan Token and Sportsfi may be a very new term for some of the encryption industry, but not for big fans of football and football around the world. In this episode, Ian and Ryu (CHAINALYSIS, CMO) is a fan token from Alexander Drefus (Socios. com + Chiliz CEO), which is affiliated with the Premier League soccer club, F1 racing team, NFL, and UFC partners. Learn everything about. Alex talks about the concept of the fan token, the growth in the sports industry, and how the fans can speak and vote for their decisions on their favorite sports teams. Masu.

  He also emphasizes the importance of regulations and compliance in the industry, security and user experience issues. He showed a optimistic perspective on the future of fan tokens and stated the potential of further innovation in this field, including strict regulations like the United States. Alex describes how fan Token is different from the conventional NFT, and how his team is looking for a no n-compliant platform to give users independent.

  "In August 2021, a fan token of Paris Sain t-Germain appeared. Now it's a bullish market, so it's a bit unfair, but there is Leo Messi who left Barcelona and transferred to PSG. 3 days, PSG. The token is traded for $ 1 billion a day on all platforms, and in Brazil, more than Bitcoin (Socios. com + Chiliz CEO).

  (2:23) -Arexandre's online games and poker care and industrial regulations

  (4:43) -Set explanation about the mechanism of fan tokens and how to provide value to fans and teams

  (13:20) -The goal of opening an ecosystem that developers can build with fan tokens

  (15:40) -Plast comparison between fan token and NFT

  (19:24) - Global regulatory environments and regulatory authorities and need for education

  (27:32) -Rewards and risks to launch no n-protective platforms for general users

  (29:13) - Security concerns in the sports token industry

  (33:05) -Pare of future entry into the US cryptographic market

  (35:02) -The excitement of Sportfi's new functions and dispersion

  Other resources provided by CHAINALYSIS perfectly complement this Public Key episode.

  Web site socios. com: The biggest team. The best fan reward. Reported passion

  Website Chiliz: Build Web3 infrastructure for sports and entertainment.

  Article Chillize 2023 Expand the frontier of Sports Pii.

  Article Chilled, 25 major partnerships announced Sportfi Eco System: Sports brands can release innovative products

  Conference CHAINALYSIS LINKS NYC 2024 CONFERENCE

  Blog fishing fraud, an explosive increase in the past two years, suspected of being stolen at least $ 374 million in 2023

  YouTube: Chainalysis YouTube page

  Twitter: CHAINALYSIS Twitter: Buildcareers at CHAINALYSISING blockchain reliability

  Telegram CHAINALYSIS ON TELEGRAM

  Ian and Ryu * Host * (CHAINALYSIS, Chief Officer)

  Alexander Drefus (Socios. com + Chiliz CEO)

  This website may include a link to a thir d-party site that is not under the control of Chainalysis, Inc. or its affiliated companies (collectively "Chainalysis"). Access to such information does not mean that CHAINALYSIS is related, approval, and recommendation with its site or its operator, and CHAINALYSIS is not responsible for the hosted products, services, and other content. yeah.

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  Unless otherwise stated, reference to a specific product or organization does not mean recommend or recommendations by Chainalysis. The views expressed by the guests are their own, and the appearance on the program does not mean that the guests or guests represent any group. Views and opinions expressed by Chainalysis employees are from employees and do not necessarily reflect the company's views.

  Hello everyone. Welcome to the episode of "Public Key" this time. It is the host Ian and Ryu. Today is Socios. com and CHILIZ CEO, Alex Drayfas. Alex, Welcome.

  Hello, Ian. Thank you for your invitation.

  Your background is attractive. You started from the world of online games and online poker. After that, I think that it is an attractive field that has gained significant growth in the past few years, entering the world of cryptocurrency, especially the fan token. Please tell me about your early career. How did you enter the online game world?

  So I was a geek, first in Web 1. 0 or Web 0. 5, actually I'm French as you can tell by the accent, but I've been a geek since I was 6 years old. I got my first computer when I learned how to write and read. And then I founded my first internet company in 1995, 1996. Since then, I've founded several companies, more or less. And then in 2004 I got into online gambling, first sports betting, then online poker. Sports betting is a very interesting topic when you compare crypto to gambling because of the regulations.

  But then in 2003 there was this big thing in Europe where more or less online sports betting companies started offering their services to all users in each European country, and that started the boom of regulated online sports betting. And then in 2004, I got into that space, and then it evolved into online poker, offshore, onshore, and it got regulated in a few countries, and then I ended up selling my business as a platform to a publicly listed company in the U. S. that is still one of the biggest service providers, especially in the land-based casino industry. So I spent a lot of time in the U. S., understanding how regulations work, lobbying, and all that.

  Well, that's a very unusual experience for me as an American. When I was growing up, in the time period that you're talking about, there were basically two places in the U. S. if you wanted to gamble, you went to Las Vegas or you went to Atlantic City. And that was it. There was no idea of ​​walking down the street and going to a betting place. I remember the first time I went to London, and the first time I went to Paris, England, there was Ladbrokes.

  It's like a retail store. You can walk down the high street and bet on the Premier League games that are going on that day. So the timing of launching this business was when it was suddenly going to be international and be able to serve the whole European market.

  No, definitely. Interestingly, it definitely varies from country to country. There were no retail outlets in France, there were very few. The countries that had a proper sports betting culture were mainly the UK, Spain, Italy, as you say, and a little bit of Germany. I strongly believe that sports betting being regulated and becoming regulated in most countries has led to the development of the sport. There was a book I read 10 or 15 years ago that said something like, the NFL was successful because of American fantasy, because you could bet on it legally, not just bet on it.

  That was very interesting. I think fantasy should be regulated, and it should have restrictions. But the fact that it has become a digital product has helped to grow the underlying asset, which is the game itself. So now you can bet on the outcome of the event, it makes the event more interesting to watch, and therefore more valuable from a broadcaster's point of view.

  Absolutely true. The American football team where I live in the US was terrible when I was young, and I could barely watch it for years. If it weren't for fantasy football, I would not have any interest in the NFL at all, because there is no local franchise that I really care about. It's interesting to see the connection to the project you're working on now. Talk to me about what fan tokens are and why people want them. It seems like there's a similar concept to this engagement with things like fantasy sports and betting.

  Five years ago, actually almost six years ago, we created Chirise and more or less created Socios. com. The idea was very simple: 99% of sports fans are not in the stadium, not in the city, not in the country of the team they support. And it was: how do we create something that is valuable for the fans and scalable for the teams? If you look at the revenue streams for sports venues, the main ones are sponsorship, TV rights, sponsorship, ticket sales, matchday, and merchandising. These revenue streams are more or less capped. You can't double them every year, and in the US it's fine, but you can't raise the ticket price in other countries.

  People will cause a strike. So you need a new source of income. What can we sell to fans around the world? We believe it is actually valuable to be a fan, a super fan, and the ability to speak. In today's world, you can call this a DAO in a sense, and what you call, such as membership programs, social files, etc. As a matter of fact, we have created the concept of a membership token program. For example, you can own Paris Sun German as a fan, wherever you are in the world.

  As long as you put this fan token in your wallet, you can vote for the club's decision. Of course, you can't vote for players or business decisions, but you can ask fans for all the fans in the middle. So we started with that idea. In 2018, we signed a contract with two teams, Paris Saint Germany and Juventus. And today, we have more than 300 employees today, with more than 100 sports teams around the world and many sports.

  That's amazing. Looking at the website, there are not only European soccer, but also F1 teams like Alfa Romeo and Aston Martin. There are also American sports teams like my local Washington Commanders and New England Patriots. When talking to Paris Saint Germany, what did they say when you first created this fan token? Is it meaningful to them? Or did you feel like "Alex, Crypto, Blockchain, why you want to do this?" < SPAN> People will strike. So you need a new source of income. What can we sell to fans around the world? We believe it is actually valuable to be a fan, a super fan, and the ability to speak. In today's world, you can call this a DAO in a sense, and what you call, such as membership programs, social files, etc. As a matter of fact, we have created the concept of a membership token program. For example, you can own Paris Sun German as a fan, wherever you are in the world.

  As long as you put this fan token in your wallet, you can vote for the club's decision. Of course, you can't vote for players or business decisions, but you can ask fans for all the fans in the middle. So we started with that idea. In 2018, we signed a contract with two teams, Paris Saint Germany and Juventus. And today, we have more than 300 employees today, with more than 100 sports teams around the world and many sports.

  That's amazing. Looking at the website, there are not only European soccer, but also F1 teams like Alfa Romeo and Aston Martin. There are also American sports teams like my local Washington Commanders and New England Patriots. When talking to Paris Saint Germany, what did they say when you first created this fan token? Is it meaningful to them? Or did you feel like "Alex, Crypto, Blockchain, why you want to do this?" People will cause a strike. So you need a new source of income. What can we sell to fans around the world? We believe it is actually valuable to be a fan, a super fan, and the ability to speak. In today's world, you can call this a DAO in a sense, and what you call, such as membership programs, social files, etc. As a matter of fact, we have created the concept of a membership token program. For example, you can own Paris Sun German as a fan, wherever you are in the world.

  As long as you put this fan token in your wallet, you can vote for the club's decision. Of course, you can't vote for players or business decisions, but you can ask fans for all the fans in the middle. So we started with that idea. We signed a contract with two teams, Paris Saint Germany in Europe and Juventus in 2018. And today, we have more than 300 employees today, with more than 100 sports teams around the world and many sports.

  That's amazing. Looking at the website, there are not only European soccer, but also F1 teams like Alfa Romeo and Aston Martin. There are also American sports teams like my local Washington Commanders and New England Patriots. When talking to Paris Saint Germany, what did they say when you first created this fan token? Is it meaningful to them? Or did you feel like "Alex, Crypto, Blockchain, why you want to do this?"

  I signed a contract between the NBA 27 teams and 13 NFL teams, but in the United States, there were not enough guidance and clearance of regulations, so I could not release tokens. Therefore, it was not possible to collect investment in the United States. With the collapse of FTX, we lost a lot of money last summer, or a year and a half ago. In other words, one and a half years ago. Therefore, I am no longer active in that direction so far. In the summer of 2018, we approach thousands of European teams. Of course, the peak was already passed in the end of 2017 or early in 2008, and the bitcoin was certainly 19, 000 or 20, 000, and then returned to 13, 000 or 7, 000.

  So we said, "What is this? What are you talking about? And I'm not afraid to sell it publicly. We," Hey, the money they are presenting Let's receive it, we will go bankrupt in two years. I just need to pay the advance payment. And we actually realized it. In the end, our biggest property was the fact that we were not Chara men, but not people who were trying to sell unrelated plans. We really understood that we were from the sports, hig h-tech and sports world. It is not at all from the cipher field. At the time and now, I do not trade, and I do not own anything other than the code we launched. And we were very consistent in the vision that such a sports property needed a legitimate partner to guide them in the 3. 0 space web.

  And at least to this day, I think I was able to build the company somehow. And eggs and chicken. Because every team, the world of sports is a very small world, everyone talks to each other. So, "Oh, these people are real. So we still work with all brands, invest, and build an ecosystem. < SPAN> NBA 27 teams and NFL. I signed a contract with 13, but I couldn't collect the investment in the United States because of the lack of regulations and clearance. This was a year and a half ago, that is, a year and a half ago. In the summer of 2018, he has reached 19, 000 or 20, 000 in the summer of 2017 or in the early 2018. Returned to 13, 000 or 7, 000.

  So we said, "What is this? What are you talking about? And I'm not afraid to sell it publicly. We," Hey, the money they are presenting Let's receive it, we will go bankrupt in two years. I just need to pay the advance payment. And we actually realized it. In the end, our biggest property was the fact that we were not Chara men, but not people who were trying to sell unrelated plans. We really understood that we were from the sports, hig h-tech and sports world. It is not at all from the cipher field. At the time and now, I do not trade, and I do not own anything other than the code we launched. And we were very consistent in the vision that such a sports property needed a legitimate partner to guide them in the 3. 0 space web.

  And at least to this day, I think I was able to build the company somehow. And eggs and chicken. Because every team, the world of sports is a very small world, everyone talks to each other. So, "Oh, these people are real. So we still work with all brands, invest, and build an ecosystem. NBA 27 teams and 13 teams of NFL. I signed a contract, but I couldn't collect the investment in the United States because of the lack of clearance and clearance. Last summer, the regulations that were one and a half years ago, we lost a year and a half. In the summer of 2018, we approached thousands of European teams, of course, peaked at the end of 2017, and then 13, 000. I returned to 7, 000.

  So we said, "What is this? What are you talking about? And I'm not afraid to sell it publicly. We," Hey, the money they are presenting Let's receive it, we will go bankrupt in two years. I just need to pay the advance payment. And we actually realized it. In the end, our biggest property was the fact that we were not Chara men, but not people who were trying to sell unrelated plans. We really understood that we were from the sports, hig h-tech and sports world. It is not at all from the cipher field. At the time and now, I do not trade, and I do not own anything other than the code we launched. And we were very consistent in the vision that such a sports property needed a legitimate partner to guide them in the 3. 0 space web.

  And at least to this day, I think I was able to build the company somehow. And eggs and chicken. Because every team, the world of sports is a very small world, everyone talks to each other. So, "Oh, these people are real. So we still work with all brands, invest, and build an ecosystem.

  So if I were at FC Barcelona, ​​I would have this conversation: "Alex, you're a great guy, and you're willing to pay me up front. So I like that business model. Then what? How do you create a fan token? You run your own blockchain, right?

  It's not like we're deploying it on Ethereum or anything else. But explain what happens after we agree to start a project together.

  So it's a long journey. We have almost three different technology products. One is the minting of fan tokens. It's a smart contract, you write the code, you mint it, and then you're free to do whatever you want. For example, for FC Barcelona, ​​40 million fan tokens will be issued or minted, and there will be a vesting schedule. It's very similar to traditional crypto assets and so on. Then we have a utility platform. The utility platform is called Socios. com. It's not available in the US, but it's called Socios. com, and you can buy custody. So it's a custodial platform, and it's the regulatory framework that we're in. But you can buy 110, 10 ... You own a fan token. That's where the voting and gamification happens. That's where you can vote for the decisions that the club wants.

  So we developed a platform for that. That's where you can win VIP tickets, exchange them, experiences that money can't buy. You can now auction jerseys and things like that. So the whole engagement experience with the fans is built on a very Web2. 2 platform called Socios. com, where all the fan tokens are available and can be traded. And the third layer is the blockchain. The blockchain was originally more or less a private chain called "Chile's Chain." So, we now call it the Chile's Legacy Chain. It was a private fork of Ethereum, with just the exchange and social connected. Then, less than a year later, it became like a permissionless chain in six or nine months. It's still Ethereum, but it's a BSC fork, and I would say an EVM chain. The idea was not to reinvent the wheel, not to change the world, not to be the fastest blockchain, but to be a blockchain specialized in the sports and entertainment sector.

  Because for the last five years, most of the utility of the Fan Token was provided by us and the clubs. By the clubs through us or through the clubs. I think that was our strength for the first five years. That's why we were able to get 2. 2 million users and grow. But we also realized that there was a limit to the fact that we needed to give more power to developers and open up the ecosystem. We call it the Fan Token internally. I went to Korea two weeks ago. For example, Paris and Germany are very famous for having Korean players.

  My dream is that if you go to a Nike store, which is the main sponsor of PSG, you can get a 5% discount, benefits, gamification benefits by having a PG token. But we can't roll that out in all countries, because different countries have different partners and e-commerce platforms. So we wanted to open up the whole ecosystem, more or less, so that developers can build tools with the biggest IP in the world. And most chains are fighting to get valuable content. We're the opposite. We believe we have valuable content. Now we need to get developers and projects (I hate that word) to come in and actually build utility outside of us leading it.

  Yeah, it's a great architecture. It's probably one of the most useful projects in the broader crypto blockchain ecosystem. I've seen a lot of projects. This setup is very cool. I actually saw recently in a tweet that I think you posted that someone launched a DEX on top of the chain.

  Chili's Labs is another organization that funds and grants developers. We did our first hackathon in Istanbul during ETH Devcon 10 days ago. It was our first time, so it was very cool. I got a message on Slack on Sunday night and I saw it. So I tweeted about it. I tell people to be careful because you don't know who's behind it and what they're doing.

  But what's interesting for us is that we've put a lot of effort into partnering with the biggest brands in the world and doing that successfully. And we believe that we're good at that from a company perspective. We're good at acquiring big brands and giving them credibility. But now we need to rely on more people to develop features and utility and innovation on top of what we're doing. You're going to see a lot of DEXs and DeFi lending protocols coming on the Cheese Chain that will give this Cheese Chain and the assets that are on that chain a little spice.

  As a user, if you have a fan token, or if you have multiple fan tokens, is there a secondary market? I don't like that team anymore, I don't like that they traded a player, I don't like that they lost a big game, I want to sell my fan tokens. Is that possible?

  And it just exploded. I think the first token was around the beginning of 2020, and then the trading component, right, the training component came on. This fan token is a candid asset, I don't like to use the word, but it's candid, so I'd say it's a cryptocurrency. You can hold the tokens and use them on a utility platform and get utility benefits, not monetary benefits of course. And these tokens are tradeable. You can trade them on Binance, you can trade them on OKX, you can trade them on all the big exchanges outside the US. Bybit, Bitget, Brazil, Mercado Bitcoin, Turkey, Paribus, Korea, UPbit. Not all of course, but there are 10-15 exchanges that are listed more or less everywhere. And they are trading heavily, as that is how it should be.

  Paris Saint-Germain Fan Token in August 2021 is the peak of the bull market, so it's a bit unfair, but we have Leo Messi, who left Barcelona for PSG. In the last three days, the PSG token traded $1 billion in a day across all platforms, more than Bitcoin, for example, in Brazil.

  It was interesting, and of course it was a source of income. There are few examples like this. Interestingly, however, fan token is now much more trading than NFT, as a category or an asset class. People don't know or actually see it. But at least our eyes are more practical than NFT 99 %. And there are more trading. Now, let's think realistically. We compare apples and orange. The transactions of moldy assets and the trading of assets that are not mold are really different in transactions. But that's interesting.

  It's interesting to say that it is a casual asset. I thought it was made with the same specifications as NFT. Because the supply of fan tokens was limited, I thought each was unique and different, but that's not the case.

  No, supply is limited. As I said, Barça costs $ 40 million. What about 20 million in Paris Saint Germany and UFC? The F1 is probably 10 million and the F1 team is probably 10 million. This was calculated from the fun d-based in 2018. Therefore, we have created a formula to create a mult i-stage ladder based on the fa n-based and potential fans that will come to this platform in the next 10 or 20 years. The irony of NFT is that NFT is hard to rot.

  This is because there is a fact that NFT does not convert bacteria, so the transaction possibilities are low and the liquidity is low, so the value is low. Also, I think Bored Apes was such a 10, 000 NFT or something like that. In other words, I think the current way of NFT is like a rich club of 8, 000 and 10, 000. However, from the viewpoint of the mainstream, if there are brands with 100 million and 200 million fans, it is not easy to reach, but in reality, at some point. So, perhaps 50 years later, you need to build a product or eco system that can reach.

  I agree. So I don't want to create artificial rare value like NFT projects. I want to deliver it to everyone who is interested in the fan club.

  That's right. There is no value without scarcity. Especially in the sports world, there are only a limited number of seats in the stadium, there are only a limited number of jerseys. There are only a limited number of ways to watch. So in the sports world, everything is limited, and it's about creating value from that. It's the same with crypto, it's the same with funnel engagement, creating a product that not everyone can have.

  For example, we do cool things. For example, we have a Turkish soccer team. Turkey is one of our biggest markets, and there, the fans were able to choose the jersey number. So, we signed a new player, and the fans decided which of the two numbers should be the jersey number. This has never been done before. It's something that we can get because we're French. We pushed the soccer clubs, the sports facilities, to give more to the fans. And that's something that's very valuable for everybody today.

  To expand that level of involvement is pretty incredible. If you can actually participate in some way in the governance of the club, it seems like a new feature of being a fan.

  Some of the clubs that we work with are actually publicly listed companies. Juventus is a publicly listed company. I've heard and read that argument many times. If you create a token, you can own a part of the club, and by owning a part of the club, you can vote. First of all, it's a security. If you actually own a part of the club, it's a security, and that's fine, but it's a different story. If you really securitize a soccer club, it's more or less an IPO, and it's already been around for the last 40 years. Today, you can buy Manchester United shares on the New York Stock Exchange. Nothing. But Manchester United shares don't entitle you to anything. But you don't have voting rights. You don't have any special benefits as a fan.

  

  Elim Poon - Journalist, Creative Writer

  Last modified: 27.08.2024

  Fan Tokens And The Sport Industry: Key Legal And Commercial Risks · why are clubs selling Fan Tokens and how are they purchased? · the legal considerations for. industry perspectives. Marcus Bagnall, Nicholas Crossland & Ben Towell, Wiggin LLP. Morphing: A (labour of) love story OR token morphing isn't dead. Fan Tokens And The Sport Industry: Key Legal And Commercial Risks - LawInSport.