Chiliz, a Malta-based platform providing fan tokens in partnership with sports clubs, says it plans to spend $50 million on an expansion in the U.S.
The company will be opening an office in New York and will launch fan tokens for U.S. sports leagues, CEO Alexandre Dreyfus told Reuters Tuesday.
The Malta-based company has so far put its focus on soccer, with its tokens allowing fans to vote on club polls and receive incentives and prizes. This type of fan interaction can provide a "new digital revenue source" for sports organizations, according to Dreyfus.
“A huge focal point for us in our global growth plans is the U.S. That’s why we’re ... investing $50 million into the country’s sports industry in order to launch Fan Tokens with leading franchises from the five major U.S. sports leagues,” he told Reuters.
On Feb. 25, the firm said it has so far partnered with 23 sporting and esports organizations, including top soccer clubs such as FC Barcelona, Juventus and Paris Saint-Germain, to launch fan tokens on its blockchain-based platform Socios.com. Its Milan FC token launched on the Binance exchange at the time, and the company reported $50 million in trading volume in the opening 30 minutes.
According to Dreyfus, the fan token market cap is currently worth $194 million and has generated $30 million in revenue for clubs and partners in 2020.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.