The European Cup is approaching, and the sports sector will usher in a big rise?

[TL；DR]

🔹 With the Euro America's Cup just around the corner, there are already signs that the sports sector token is gradually gaining traction and hype.

🔹 Sports tokens can be simply divided into two categories, one is fan tokens and the other is fan token infrastructure.

🔹 While CHZ has the potential to rise as a leading project in the sector, it may be less explosive given its market capitalization, and for more fan tokens, there should be a trade-off between risk and expected reward, and there are signs that investors are noticing the value of the Euros and starting to plan for it.

Introduction

The fourth Bitcoin halving has sparked heated discussions and hype in the market, and in addition to the Bitcoin halving every four years, the World Cup football tournament every four years has always aroused the passion and carnival of football fans and crypto investors.

Recently, in addition to the hot AI and MEME sectors, the author has noticed that there have also been changes in the sports fan sector, and what potential investment opportunities will be brought by the European Cup in June, this article will answer them for you one by one.

The European Cup America's Cup is about to ignite the sports token market?

As the biggest event in football, the World Cup has huge commercial potential and market value. This is not only reflected in the active participation and endorsement of traditional brands and business giants, but also in the widespread attention of the crypto market.

In recent years, the rise of fan tokens has set off a craze before the opening of the World Cup, attracting the attention of many fans, people in the cryptocurrency circle and speculators. This emerging phenomenon has not only brought joy to fans who truly love football, but has also become a major focus in the cryptocurrency space, with all parties participating in the event in the hope of profiting from the hype of tokens.

Historically, the start of the sports market has tended to take place 2 to 3 months before the start of the game.

In the case of the 15th World Cup in December 2018, WICC, a prediction token based on the World Cup concept, showed strong growth three months before the tournament began, with a staggering 10x increase.

Therefore, the Copa America and the European Cup, the two major world football events, are approaching, and sports-related public chain coins and fan tokens will most likely become the focus of investors' attention.

Figure 1 Source: Public information

As of the date of writing, according to Coinmarketcap data, there are 115 tokens belonging to the sports sector, of which 43 tokens have not yet been listed, with a total market capitalization of $1.92B, accounting for only 0.07% of the total market capitalization, and there is still a lot of room for speculation.

Figure 2 Source: CoinMarketCap

How do sports tokens work?

Sports tokens can be simply divided into two categories, one is fan tokens and the other is fan token infrastructure.

Fan tokens, an innovative product born out of the booming fan economy, are mostly issued by major teams or clubs, providing fans with a new way to participate and support.

For example, the fan token of Paris Saint-Germain Football Club is PSG (Paris Saint-Germain Fan Token), the fan token of Santos Football Club is Santos (Santos FC Fan Token), the fan token of Manchester City Football Club is CITY (Manchester City Fan Token), and the fan token of Lazio Football Club is LAZIO (Lazio Fan Token), FC Barcelona Fan Token (FC Barcelona Fan Token), Juventus FC Fan Token JUV (Juventus Fan Token), etc., all of which are available in spot trading pairs on Gate.io.

Figure 3 Source: Gate.io

Fans who hold these tokens will not only be able to participate in the club's decisions, such as voting on the style of the team's jersey, but will also have the chance to win precious match tickets, the privilege of getting up close and personal with their idols, and more.

In short, Fan Tokens not only give fans a deeper sense of engagement, but also allow them to enjoy multiple benefits such as exclusive content, in-game interaction, and recognition from super fans.

For example, PSG holders of Paris Saint-Germain's fan token can enjoy an exclusive VIP experience and have a voice in voting on the FIFA 22 fan edition cover. During a match in May 2021, a message voted for by fans even appeared in the team's locker room: "We can together, we can do it together!" "This is a great example of how Fan Tokens can bring a deeper and more unique engagement experience to fans.

And when it comes to fan token infrastructure, we have to mention Chiliz.

Chiliz is a company focused on building infrastructure for the sports and entertainment industry, founded in 2018 by Alexandre Dreyful, founder of travel consultancy Webcity and co-founder of Winamax, France's largest online poker site. The system consists of two parts: the Chiliz blockchain provides the underlying blockchain technology support, and the Socios application, which provides the front-end application, so that Web2 users can seamlessly participate in the construction of the Web3 ecosystem and community activities.

Currently, Chiliz has launched 82 fan tokens in association with famous teams such as Paris Saint-Germain, Juventus, Barcelona and Manchester United, and has established partnerships with more than 150 sports partners around the world, with more than 2 million ecological users.

Token investment value opportunities brought about by the Football Cup

On the whole, the sports coin sector is in a state of brewing market heat and high control.

Due to Bitcoin's recent blood-sucking effect, sports tokens are still performing in a mediocre manner, and now seems to be the time to acquire chips. However, it is worth noting that the entire sector is still waiting for an outbreak, and instead of expecting huge gains in the short term, it is better to comprehensively analyze the main rise of other narratives other than the sentimental nature of the tokens in this sector.

In addition to sports fan tokens and related infrastructure tokens, many MEME tokens with the same name, related NFTs, etc., have the potential to become potential hype targets.

It is worth mentioning that while CHZ is likely to rise as a leading project in the sector, it may be less explosive given its market capitalization, and for more fan tokens, there should be a trade-off between risk and expected return, and only for the time being, there are signs that investors are noticing the value of the Euros and starting to lay out.

Figure 5 Source: Gate.io

With the Copa America and the European Cup approaching, sports sector tokens will gradually become the focus of investors' attention, and there has been a small upsurge in some projects recently, in fact, this cross-border craze not only shows the charm and influence of football, but also reveals the activity and speculative atmosphere of the cryptocurrency market in the context of the current bull market.

All in all, investors should pay attention to the timing of the explosion before the European Cup, and at the same time, when choosing a coin, according to the market value and potential of the project, Gate.io will also provide investors with more valuable hot insights.

Author: Carl Y., Researcher, Gate.io

**This article represents the views of the author only and does not constitute any trading advice. **

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