March 3 – Blockchain business Chiliz is ploughing $50 million into the launch of its Fan Token cryptocurrency business into the US market, targeting clubs in America’s major leagues.
Fan Tokens are delivered via the Chiliz-owned Socios.com platform and allow fans to buy a share (Fan Token) that gives them various club rights from polling on club decision through to exclusive club offers. The shares are tradable on the Finance cryptocurrency exchange.
Fan Tokens generated more than $30 million in revenue in 2020 and the company expect to double that this year. The money raised was shared with Chiliz clubs and partners. The Fan Token Market cap currently stands at about $194 million.
To date Chiliz has focussed its business on European club football, having launched at more than 20 clubs with a number more promised in the coming weeks.
Last week AC Milan were the latest to launch on the platform with their Fan Token generating $6 million of revenue in the first day.
Chiliz founder and CEO Alexandre Dreyfus told Reuters: “A huge focal point for us in our global growth plans is the U.S.. That’s why we’re opening a New York office and 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,” Dreyfus said.
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