Although the German national team dropped early in the eighteen semi-finals of the English European Football Championship, many fans are likely to remain in football fever. After all, intoxicating games could be seen, such as the Swiss team’s surprise victory over the World Cup in France or the Spanish Peat Festival.
But can investors make money with football too? Many top national and international clubs, such as Borussia Dortmund, have long been listed on the stock exchange. And BVB’s share price has risen significantly again recently, even though the club only made it to the Champions League next season in the Bundesliga.
BVB’s shares are currently approximately EUR 6.30. At the end of October 2020, however, the annual price was still around EUR 4.20. Since then, the price has risen 50 percent and the investment has definitely paid off for investors during this time.
However, BVK’s share was already significantly higher. In 2018, the limit of 10 euros was reached. Supporters of the Bundesliga club that invested at the time now have to record losses of around 35%.
If a club has a bad season or even drops, it is very likely that the stock price will fall quickly. The more important the association, the higher the investor requirements. For listed companies like Juventus Torino or Manchester United, even a second ranking in the league or a missing Champions League title can cause a price wound.
Fan badges will be available in Binance from December 2020
But sports fans don’t necessarily have to Buy sharesinvest in their favorite club. Meanwhile, more and more clubs and top athletes are also giving so-called fans that can be traded like other cryptocurrencies. For example the world’s leading Binance stock exchange various such tokens to its customers, for example from Juventus Turin, FC Barcelona or Paris Saint Germain.
This is made possible by a partnership with Binance and FinTech blockchain company Chiliz, which provides sports and entertainment tokens. The partnership was completed in December 2020.
Chiliz has a sports fan and rewards platform, Socios.com, which has partnered with some of the world’s largest sports clubs. And it seems that there is a lot of interest among investors. According to Binance, in just over a year, Chiliz’s offer has already been used by more than 370,000 users. In addition, more than 14 million fan brands have been sold and more than 700,000 votes have been cast on the blockchain.
Barca tokens sold out in 20 minutes
FC Barcelona’s Fan Token Offering (FTO) ($ BAR) sold out in 20 minutes and brought in $ 1.3 million, while the Turkish Trabzonspor team’s Fan Token Offering raised five million Turkish liras in less than five minutes.
In Binance’s startup pool, users can get badge prizes by putting on different tokens. Changpeng Zhao, CEO and founder of Binance, says of the business model: “Chiliz has established its position in the world of cryptography with its fan brands. These have the potential to drive the widespread adoption of cryptocurrencies around the world. We are very excited to welcome Chiliz to the Binance ecosystem and look forward to increasing fan engagement and bringing the cryptocurrency currency closer to billions of people. “
According to Binance’s CEO, the company’s vision is to mark the sports and entertainment industry over the next five or seven years.
This is how profitable fan brands really are
But do the courses keep what full-bodied announcements promise? Analysis of two selected fan brands:
On December 21, trading began at the Fantoken JUV of the top club in Italy, Juventus Turin. On the first day of trading, the price exploded from about $ 10 to a high of $ 43. This corresponds to a sharp increase of 330%.
But this price increase was not sustainable. Investors who bought right at the start of trading and sold again a little later have received the highest profit to date. If you have JUV / USD in your portfolio to date, you will have to choose from a loss. Because at the moment the brand is listed for only about $ 7 and thus clearly the starting price.
Juventus funds fell 75 percent since May
A review of the brand’s day candles shows that the price is very volatile and price fluctuations of 50 percent are not uncommon. In addition, the JUV / USD has been in a strong correction since mid-May and has fallen more than 75 percent from $ 30.
Although the fan brand follows the general bad mood in the cryptographic product market, the correction is much stronger than in the smuggled market, for example. Buying Bitcoin or altcoins such as Ethereum. Cryptographic investors who have bet on these leading cryptocurrencies have brought in fewer losses than the Juventus Turin fan brand, at least in recent months.
The Paris Saint-Germain fan ID can also be changed via Binance. At the start of trading last year, the rate was quoted at $ 2.5 and rose to more than $ 7 a day, an increase of 180 percent.
The rise in prices was not as strong as with the JUV at the start of trading, but the next correction was also much smaller. The value of the PSG logo increased significantly in the months following the market launch and peaked at around $ 50 at the end of 2020.
Early investors who sold at this point could expect a return of 1,900 percent. In January, however, there was a sharp correction to $ 7 before the price rebounded and finally reached an all-time high of over $ 61, in May 2021.
Paris Saint-Germain brands with an increase of 432 percent
PSG is now trading at just $ 13.3. The 78.2 percent correction is similar to the JUV ID correction. Unlike the Torino Juventus brand, early-stage investors are still significantly profitable. The increase is still 432 percent compared to the issue price.
For sports lovers, the end result is that buying PSG tokens has cost more in the long run than a JUV ID. This is probably also due to the poor level of sport in Turin Juventus. Christiano Ronaldo’s club only finished last in Serie A season in 4th place and is so far below its own claims. Paris Saint-Germain, on the other hand, has easily resorted to the title Ligue 1 and has also risen to the semifinals of the Champions League.
The example shows that buying tokens from sports clubs should be treated with some caution. Because the courses depend largely on the athletic success of the clubs and also on important management decisions such as player transfers and the acquisition of sponsors.