TL;DR Breakdown
- The blockchain-based fan token platform Chiliz has secured an equity investment from Jump Trading.
- The investment comes amid the growing traction in the sports crypto space.
A globally-positioned proprietary trading company, Jump Trading, has invested an undisclosed amount in Chiliz, the blockchain-based fan token startup powering Socios.com, according to a report by Reuters on Wednesday. The investment comes as the fan token ecosystem has been growing significantly, as several sports and entertainment companies are issuing digital currencies to boost fan engagement.
Jump Trading is investing in the sports crypto space
Jump Trading’s equity investment in Chiliz is “recognition for us and of the industry that this market is just at its beginning,” said Alexandre Dreyfus, the CEO of Chiliz.
The Chiliz blockchain and our consumer-facing product Socios.com grew massively in the last few months in terms of users, user spending, but also in terms of new sports partners like AC Milan, FC Barcelona, and Manchester City.
Both Chiliz and its fan voting app, Socios.com, have seen immense growth since the beginning of the year. As cryptocurrencies got more popular, many sports clubs began considering issuing their native tokens as a medium to boost engagement with fans and decide on certain matters that concern the club.
Massive growth in fan tokens
Earlier this year, a professional Italian football club, AC Milan, introduced its fan token “ACM.” In addition to voting on the club matters, the token holders are entitled to getting VIP experiences and rewards, games, and sponsor promotions. Many other professional clubs, including Manchester City, Barcelona, Atletico Madrid, etc., have launched their fan token.
Amid the growth of the fan token ecosystem, the Chiliz cryptocurrency has increased by over 2,100 percent since the start of the year. On Coinmarketcap, the cryptocurrency was trading at $0.42 during the time of writing.
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