Chiliz has already churned out an impressive list of blockchain tokens for European football clubs and now it is planning to rock the US market.
Malta-based blockchain sports firm Chiliz is set to make its entry into the American market with a planned $50 million investment. As reported by Reuters, the plan was revealed by the company’s Chief Executive Officer Alexandre Dreyfus and will involve the opening of an office in New York.
The firm, which prides itself in creating fan tokens for the top sports outfits in Europe is eyeing a partnership with the top five leagues in America, all to advance its mission to take advantage of a “new digital revenue stream” for sports organizations through engagement with geographically widespread fan bases.
“A huge focal point for us in our global growth plans is the US. 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 US sports leagues,” Dreyfus said.
Through its offerings and track records with European sports teams, Chiliz is hopeful the expansion into the US market will steer more growth per its target for the year. The CEO noted:
“We head to the US with a proven track record in generating millions of dollars of revenue for some of Europe’s biggest sporting organisations. In 2020, we shared more than $30 million with our partners, but this year we’re targeting a minimum of $60 million.”
Blockchain Firm Chiliz Prioritizes Partnerships and Value to Fans
Chiliz has churned out an impressive list of blockchain tokens for European football clubs including FC Barcelona, Juventus, and Paris Saint Germain FC amongst others. With these tokens, the company utilizes the fan engagement platform of its subsidiary, Socios.com to offer unique values to the token holders.
The tokens have a variety of uses including voting on some aspects of club management, helping fans interact with their clubs in ways that bridge the distance created by the COVID-19 pandemic. Besides Socios.com, Chiliz also has a partnership with the Binance crypto exchange for the listing of the fan tokens on its Launchpad platform. The AC Milian fan token was the latest to be listed, and the club generated as much as $6 million from the exercise last week.
Per the Reuters report, Joseph Edwards, head of research at cryptocurrency brokerage Enigma Securities, believes that the roll-out of fans token is essential as the pandemic strained out most club’s revenue sources. He believes the token offers value to both the fans and the team as well.
“Fan tokens right now are just hitting the perfect itch at the perfect time – fans are disconnected physically from their fandom, and this helps bridge that gap,” he said.
The expansion into the US markets will undoubtedly broaden the reach of Chiliz while reinventing the opportunities that abound in blockchain-related fan tokens.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.