In a recent interview with CoinDesk, Alexandre Dreyfus explained the recent rise of Fan Tokens and their dominance over NFTs.
Recently, Alexandre Dreyfus, CEO of Chiliz, highlighted how fan tokens are overtaking NFTs in terms of market volume.
During the interview at the Token2049 event in Singapore, Dreyfus argued that the potential of fan tokens goes beyond what has been seen so far with NFTs, and previewed the launch of a new memecoin called 'Pepper', which promises to capture the attention of cryptocurrency enthusiasts.
Fan Tokens are a growing market, Dreyfus said
Dreyfus highlighted that while NFTs have received a lot of media attention, the market for fan tokens is significantly larger. The Chiliz CEO cited data from cryptocurrency price monitoring platforms such as CoinGecko to highlight that fan token transaction volume is far outpacing that of NFTs over a 24-hour period.
According to recent data from this platform, the daily transaction volume of fan tokens exceeds $207 million at the time of writing this article, while that of NFTs is around $6,5 million.
Source: CoinGecko
Source: CoinGecko
According to Dreyfus, although the market capitalization of NFT tokens is much larger than that of fan tokens, the discrepancy in daily trading volume reflects the huge popularity that these latter digital assets have gained, as well as their functionality and utility in real life.
“No offense to the NFT community, but what people don’t realize [is that] fan tokens are a much bigger market than NFTs”, argument Dreyfus.
What are Fan Tokens?
Fan tokens are digital assets that represent a membership and allow sports fans to participate in decisions related to their favorite teams. This includes everything from voting on the design of the team's official jersey to choosing the music that will be played in the stadium when a goal is scored.
In contrast, NFTs, while unique and collectible, often lack a practical application that actively engages their holders, Dreyfus believes. He therefore emphasized that, unlike non-fungible tokens, fan tokens generate continuous interaction between fans and their teams, making them a valuable tool in the world of sports and what has led to their popularity in the crypto market.
The Chiliz CEO also mentioned that their platform, Socios.com, has become the leading creator of fan tokens worldwide, working with over 80 sports teams and clubs. This has made Chiliz a key player in this emerging market, creating an ecosystem where fans can have a say in decisions that affect their favorite teams.
The launch of a new memecoin is approaching: Pepper
In addition to highlighting the growth of the fan token market, Dreyfus also revealed the launch of a new memecoin, which is expected to take place next month. Thursday October 10.
Chiliz's new meme cryptocurrency, called Pepper, is generating high expectations in the crypto community. Dreyfus explained that the memecoin's name is a reference to the 'chili pepper', a nod to popular culture that could resonate with a wide audience. This new cryptocurrency will be distributed among CHZ token holders, although it will not be available to US citizens, which has raised curiosity about its launch strategy.
Through this new memecoin, Chiliz is not only looking to attract cryptocurrency enthusiasts, but also sports fans, reinforcing the connection between the entertainment world and the crypto ecosystem. Dreyfus also noted that the launch of Pepper is part of a broader strategy to diversify Chiliz’s offering and continue its growth in the fan token sector.
