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Crypto Chi: The future (and energy) of money and technology

Crypto Chi: The future (and energy) of money and technology

Throughout 2020, we saw a consistent flow of news about legacy finance, major investment companies and large corporations looking to enter the digital assets industry. The value proposition for investing in Bitcoin (BTC) and other digital currencies started to move beyond just a store of value or thinking of Bitcoin as a commodity like digital gold.

In 2021, we’ll see the market’s understanding of Bitcoin maturing even further. The narrative will shift from a store of value to a powerful and appreciating currency. In 2020, Bitcoin was a commodity that institutions felt pressure to own. In 2021, Bitcoin and crypto will morph from a curiosity (2017) to a commodity (2020) to real money (2021).

Related: What lies ahead for crypto and blockchain in 2021? Experts answer

The dramatic reduction of the dollar’s purchasing power during the COVID-19 pandemic will stay with people for a long time. Depreciation has a psychological effect, one that MicroStrategy CEO Michael Saylor calls “financial energy.” The experience of watching purchasing power vanish is a drain on people’s emotional and financial energy.

Heading into 2021, consumers and investors are looking for ways not only to protect their purchasing power but increase their peace of mind. Consumers want sound money. Bitcoin and cryptocurrencies can make people feel powerful.

Updating Saylor’s concept, I call this psychological effect “Crypto Chi,” for the eternal circulating life force that exists in everything, according to Chinese philosophy. Crypto can act as something that enhances your financial life and overall health.

Investing and using crypto can reconnect people to the notion that they control their destiny and can harness and channel their energy (whether that is in the form of money, actions, relationships, etc.) in positive ways.

The idea that Bitcoin is digital gold is becoming obsolete as it reaches beyond its 2017 high. By making that leap, Bitcoin becomes the catalyst for a new idea — that fiat currencies will have digital cousins. It’s possible that major fiat currencies like the U.S. dollar, euro, yen, British pound, Swiss franc and Australian dollar will have a group of digital cousins trading in the cryptocurrency market. In the foreign exchange market, daily turnover is roughly $6 trillion per day. It’s a massive market relative to crypto.

This idea of crypto increasing personal health and financial power can lead cryptocurrency investors to think beyond just Bitcoin. Just as kung fu master Bruce Lee had a wide variety of ways to fend off an attack, investors now have a variety of digital currencies to invest in to protect their purchasing power and, ultimately, make their lives better — not just materially but spiritually as well.

Bitcoin, Ether (ETH), Dash and Bitcoin Cash (BCH) are used as payment methods in the emerging market world. Contrary to popular belief, we see governments taking a positive outlook toward cryptocurrencies. If 2021 is a more challenging economic environment than 2020, governments may look to crypto to help their citizens in a way they can’t. That could be why the director of National Intelligence recently urged U.S. regulators to create a more favorable environment for the expansion of crypto in the United States.

As you delve into crypto research, you can see the vast potential. For example, if you research how Bitcoin, cryptocurrencies and decentralized finance can empower people, you will see a wide variety of opportunities. For example, the big technology companies — Facebook, Amazon, Apple, Netflix and Google — are like mature redwood trees in a crowded forest. How much bigger can they get? In contrast, the altcoin world is like a bright green shoot popping up through fertile soil created by the Bitcoin rain. They are just getting started, and only the sky is the limit.

Technology is now intricately tied to finances, which, for better or for worse, has a deep impact on our lives. When our idea of money can be elevated to a spiritual level, we can see just how important it is to invest in the things that bring us joy.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

William Noble is the chief technical analyst of Token Metrics — an AI-driven digital assets research company. Noble is a 20+ year veteran of finance with experience at Goldman Sachs, Charles Schwab and Morgan Stanley, who’s brought his market analysis expertise to the cryptocurrency space. He has the rare ability to synthesize the crypto and traditional markets in a way that surfaces insightful trends.

‘Miss Bitcoin’ launches celebrity NFT art charity project

Early crypto evangelist, Mai Fujimoto, a.k.a. Miss Bitcoin, has partnered with blockchain gaming ecosystem Enjin to launch Japan’s first nonfungible token, or NFT, charity project.

According to a Jan. 18 blog post, the project’s first initiative will be the sale of tokenized artwork by Japanese celebrities to benefit DxP, a non-profit that supports teenagers facing challenges during the COVID-19 pandemic.

Fujimoto believes that the project embodies the Japanese concept of “Sanpo Yoshi”, or three-way satisfaction. This describes transactions that are good for the seller, good for the buyer and good for society:

“When fans purchase NFTs drawn by artists and celebrities, they can not only enjoy the art, but also directly contribute to those in need. I believe this NFT campaign will bring joy to many people, and I’d like to thank the Enjin team and artists who have agreed to join the initiative.”

The initiative will take place through Fujimoto’s crypto donation platform Kizuna. This was launched in 2017 to educate about the potential of blockchain and NFTs for mainstream use, especially in the context of giving to charity.

Kizuna hopes to raise over 2,000,000 yen ($20,000) from the sale, with the celebrities who are donating artworks to be announced soon.

Fujimoto was an early adopter of Bitcoin technology and has been actively promoting crypto and blockchain since 2011. Aside from running Kizuna, she is an ambassador for Binance’s charity foundation, and an advisor for multiple companies in the blockchain space.

The Enjin platform provides tools for integrating blockchain technology into games and creating NFT assets that can be used across various games in the Enjin multiverse. It recently announced that it would be launching a range of Atari branded NFTs for a reboot of the Kick Off series of footballing games.

Bitcoin thermocap metric shows BTC price is still in the ‘low end’ of bull cycle

Bitcoin (BTC) is still at the “low end” of a 2021 bubble, new data tracking miner and investor behavior suggests. 

In the latest signal that BTC price action still has major growth potential, researcher Geert Jan Cap showed bullish signs coming from Bitcoin’s thermocap.

Thermocap suggests Bitcoin just getting started

Thermocap is a metric which aims to track Bitcoin price cycles based on actions taken by miners and investors with regards to buying and selling BTC.

It employs the so-called thermocap multiple, which divides the Bitcoin price on a certain day by the cumulative block subsidy, or all rewards earned by miners from day one.

The resulting value gives an insight into how profitable it is to sell at a given price point, and therefore why price volatility may have ensued at various times in Bitcoin’s history.

“It shows when a bubble in the price was present with a very high signal to noise ratio,” an introduction to the metric explains, adding that thermocap also “enables comparison of the bubble peaks” and “appears to show a relatively constant value of the multiple for ‘healthy’ price levels” among other benefits.

As of Jan. 17, 2021, Bitcoin’s thermocap multiple stood at 17.5, down from a recent high of 20 earlier in the month.

Given that bubble activity historically occurs between 16 and 60, it is immediately apparent that Bitcoin still has considerable room to explore this bull cycle.

Bitcoin thermocap vs. BTC/USD chart. Source: Geert Jan Cap/ Twitter

“We’re still in the low end of the ’21 bubble phase,” Cap summarized in accompanying Twitter comments.

Weak hand sell-offs define BTC bear markets

In terms of how hodlers cause and react to price events, meanwhile, statistician Willy Woo believes that a cycle of weak hands selling during every bear market in Bitcoin’s lifespan is a provable phenomenon which takes precedence over changing narratives.

On Sunday, Woo highlighted Bitcoin’s realized price — U.S. dollars stored in the network — being higher than the spot price during bottoms both in late 2018 and March 2020. In the former instance, BTC/USD fell 85% versus its prior top near $20,000.

“Weak hands (buyers who buy under FOMO) always capitulate allowing strong handed thoughtful buyers to get bargains,” he commented.

“This happens in EVERY bear cycle.”

Bitcoin realized price chart. Source: Willy Woo/ Twitter

The comments are particularly timely given recent market trends as Bitcoin climbed to $42,000, sold off to $30,000 and then hit $40,000 once more, all within a week.

As Cointelegraph reported, data highlighted small-balance wallets decreasing, while the number of wallets with a balance of 1,000 BTC or more grew. A transfer of bitcoins from small investors to whales was in progress, analysts warned, appealing to sellers not to part with their funds during such volatile conditions.

“The narrative for each bear and bull market changes cycle to cycle, but the effective mechanism is the same,” Woo concluded.

“I’ve found little value reading market news and industry narratives, IMO tracking capital flows in relation to the behaviour patterns of participants is better.”

How compliance software detects fraud and money laundering involving crypto

The crypto industry has boomed over the past 12 months. While 2019 began with a total market cap of $200 billion, the explosion in Bitcoin’s value resulted in this figure surging fivefold as 2020 began — and according to CoinMarketCap, the digital assets space was collectively worth $1 trillion at one point.

However, as the crypto sector continues to grow and flourish, so too does crypto-related crime. Virtual assets worth $3.8 billion were lost to fraud in 2019. This figure rose to almost $4.9 billion in 2020.

Fraud, money laundering and the financing of terrorism are not issues that are exclusive to the cryptocurrency sector — and every financial system on Earth has had to take action to ensure its infrastructure isn’t used for illicit purposes. But now, regulators around the world are stepping up their efforts to clamp down on criminal activity — and this has the potential to affect operations for crypto service providers, many of whom are still behind the curve.

Mainstream media coverage of digital assets has increased dramatically in recent months, with countless column inches devoted to BTC’s current bull run. This increased exposure also results in newfound scrutiny, especially when exchanges fall victim to high-profile hacks. Thankfully, there are ways for crypto businesses to take action, to protect their operations, and to work in the interests of their consumers in the process.

Achieving compliance

Amid the fractured landscape of regulatory developments for crypto, one of the most important sets of guidelines has come from the Financial Action Task Force, which has 39 members including the European Commission, Japan, the United Kingdom, and the United States.

The FATF recently unveiled a series of red flag indicators that suggest potentially suspicious activity is taking place — or possible attempts by entities to evade law enforcement. For example, the size and frequency of transactions could set off alarm bells for compliance officers, especially if such repeated payments are made that fall just underneath the threshold for reporting.

Other issues may arise where deposits are made using bank accounts that use a different name to the one registered with a crypto exchange, where mixers and tumblers are used to obfuscate the origins of BTC payments, or where potentially suspicious IP addresses are used.

At first, it might seem like a nightmare for virtual asset service providers to introduce safeguards that quickly detect when these red flag indicators emerge. In a competitive marketplace, some will be concerned about the costs associated with stopping high-risk transactions in their tracks — as well as the disruption that their operations could face if legitimate activity is mistaken for something more sinister.

But platforms do exist that can monitor new transactions in real time — instantaneously assigning a risk score to each and every transaction. This is by no means a straightforward task, as the high volume of transactions running through blockchains daily means that analysis needs to take place continuously and without interruption.

The speed with which bad actors can execute transactions also means that compliance systems need to be fast acting — identifying centers of suspicious activity, and creating meaningful connections to other wallets where potentially illegally acquired funds are distributed. Past data may also be used to anticipate future events, meaning that exchanges can receive a warning that potentially risky activity is about to happen — even if a transaction hasn’t been confirmed yet.

The benefits associated with this type of software aren’t hypothetical. In late September, KuCoin announced that close to $280 million was stolen from its exchange as a result of a security breach. Analytics tools enabled the company to track down and freeze these funds so they couldn’t be laundered further — and 84% of the assets taken were later recovered.

Taking action

The technical nature of blockchain — along with the prevalence of crypto scams — has caused a significant image problem for Bitcoin in society. But despite missteps in the first decade of its existence, aspects of blockchain design champion transparency and security — meaning it can offer far greater levels of protection than older financial systems. If $500,000 in banknotes are stolen from a bank vault, the funds could end up being far harder to track down than if the same amount was taken in BTC from an exchange that has safeguards in place.

Crystal Blockchain says its analytics platform enables compliance officers and anti-fraud departments to stop illicit activity in its tracks — and monitoring can either be performed manually or automatically as settings are configurable by the user.

This is achieved by understanding the provenance of funds being sent over the blockchain, their connections, their flow paths, and by alerting crypto service providers if these assets are stolen or fraudulent. Addresses and bank cards can be linked to fraud, extortion, ransomware and darknet marketplaces. Businesses can also be alerted when entities are attempting to deposit to or withdraw funds from accounts and exchanges that have little or no due diligence procedures in place.

Institutional adoption of cryptocurrencies is happening at a staggering rate — and as we head into 2021 and beyond, Wall Street is ramping up efforts to ensure it has the infrastructure required for traders to gain exposure to digital assets. But this comes with an expectation of a mature marketplace, meaning crypto service providers need to take the necessary actions to ensure they aren’t operating in the Wild West any more.

Marina Khaustova, the CEO of Crystal Blockchain, told Cointelegraph: “The crypto industry is relatively young, and as the technology develops it also brings with it unique compliance requirements. We need to combine the best practices of the more mature financial industries with the knowledge amassed by crypto market experts to combat money laundering and the financing of terrorism. By assisting with fraud identification and suspicious activity monitoring on the blockchain, Crystal aims to improve safety and trust in the global financial markets.”

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

Huobi Korea scores certification from Korea Internet and Security Agency

Huobi Korea, the South Korean arm of the world’s second-largest cryptocurrency exchange by trading volume, has been certified by a major regulator.

According to an announcement on Jan. 18, the Korea Internet and Security Agency, or KISA, has granted Huobi Korea an information security management system, or ISMS, certification. 

The ISMS certification will provide Huobi Korea with a comprehensive management system to ensure security and compliance with the Special Payment Act — new legislation requiring local crypto businesses to report transactions in line with revised Know Your Customer and Anti-Money Laundering policies. 

Specifically, exchanges must report the real names of their users to the Korean Financial Intelligence Unit in addition to verifying them against personal data, such as resident registration numbers. The Special Payment Act will come into force in March 2021.

Park Si-deok, CEO of Huobi Korea, said that the acquisition of ISMS will further strengthen the company’s position as a provider of institutional-level crypto services. As previously reported, Huobi Korea officially launched trading in March 2018.

While Huobi continues to cement its position in South Korea, some global crypto exchanges have faced some issues in maintaining their business in the country. Binance KR, the South Korean wing of the world’s largest crypto exchange Binance, shut down operations due to low volumes in January 2021.

Aussie Bitcoin exchange owner accuses banks of discrimination

Allan Flynn, a Bitcoin trader in Australia has filed a complaint against two commercial banks in the country — ANZ and Westpac — accusing both of systematic discrimination. According to a report by the Australian Financial Review, Flynn is seeking compensation to the tune of 250,000 Australian dollars (about $192,000).

According to Flynn, he has been the victim of discriminatory practices with banks allegedly continuing to shut down his accounts. Speaking to AFR, Flynn lamented that no fewer than 20 banks have closed accounts operated by his exchange in the last three years, adding:

“How am I supposed to run a lawful business if I can’t get a bank account?”

For Flynn, the reported account closures come despite the fact that his crypto exchange service is registered with the Australian Transaction Reports and Analysis Centre, or AUSTRAC. Flynn’s platform reportedly services over 450 customers.

Back in 2020, Flynn lodged a complaint with the Australian Financial Complaints Authority. However, AFCA ruled that Westpac — one of the banks involved in the matter ­— acted per its laid down terms and conditions.

At the time, Westpac offered Flynn 250 Australian dollars as restitution for the sudden account closure which the complainant says he is yet to receive. Flynn also says that Westpac has previously attributed his account closures to ongoing cryptocurrency fraud investigations. ANZ for its part says it does not offer banking services to cryptocurrency brokers.

Flynn’s fresh complaint which is before the ACT Civil and Administrative Tribunal will reportedly commence in March.

ANZ and Westpac did not immediately respond to Cointelegraph’s request for comment. 

Exchanges accusing banks of discriminatory practices is not restricted to Australia alone. In March 2020, India’s Supreme Court reversed the central bank’s ban against banks servicing crypto businesses. However, reports still emerged of “crypto-phobic” behavior among Indian banks even after the Supreme Court’s decision.

A similar situation also exists across Latin America where commercial banks continue to intensify account closures targeted at crypto exchanges. In Brazil, two major platforms were also forced to shut down their operations following stringent tax compliance policies.

Nornickel to use blockchain for its new ETCs on Deutsche Börse and LSE

The world’s largest producer of palladium and high-grade nickel, Norilsk Nickel, is pressing ahead with its digital technologies strategy. As of Jan. 18, Nornickel’s Global Palladium Fund has launched exchange-traded commodities, or ETCs, for metals on the Deutsche Börse, which are custodied by TokenTrust AG and also make use of its distributed ledger platform, Atomyze.

Nornickel’s Global Palladium Fund intends to launch the ETCs on the London Stock Exchange “within a few days.” An ETC, which is an instrument that is tradable like a stock or share, offers traders and investors exposure to an underlying commodity — in this case, metals. Nornickel’s fund will contribute palladium, platinum, gold and silver to the newly-launched ETC instrument and will collaborate with the Swiss-based company TokenTrust AG on metals custody arrangements and a tokenization strategy.

TokenTrust provides the fund with a distributed ledger technology-based platform called Atomyze, built on Hyperledger Fabric that will be used to immutably record metals information and tokenize a part of the mining group’s contractual volumes.

The ETC instruments will be offered at the LME — London Metals Exchange — spot price and will provide additional guarantees about the provenance of the underlying commodities due to the usage of distributed ledger technology for monitoring and verifying standards. The CEO of Nornickel’s Global Palladium Fund, Alexander Stoyanov, said:

“Our way of digitalization of commodities allows one to capture and trace the source of underlying metals and the way they were produced, coupled with ESG credentials. Nornickel, whose products we carry, sets a new standard for responsible mining by fully endorsing the UN2030 charter and the existing LBMA source of metal standards. This gives our ETC platform a […] clear differentiator.”

As reported, Nornickel has recently joined an initiative called the Responsible Sourcing Blockchain Network, which was set up to improve the transparency, traceability and verification of sustainable practices in the global minerals and metals industries. The network is built on the IBM Blockchain platform, similarly powered by Hyperledger Fabric. 

The case for Bitcoin price dropping to $27K in a possible bearish scenario

Some analysts say that the price of Bitcoin (BTC) could drop to $27,000 in a bearish scenario if it falls through the $30,000 support area.

The potential drop to $27,000 is conditional in that BTC would have to break down below $30,500, where it strongly bounced from on Jan. 11.

Bitcoin whale clusters. Source: Whalemap

Which is the short-term Bitcoin bottom?

In the foreseeable future, there are three key technical levels at play for Bitcoin: $34,500, $30,500, and $27,000.

$34,500 has been acting as a critical support area throughout the past 72 hours. Each time BTC dropped to this level, it recovered fairly quickly to around $36,300.

If $34,500 breaks, the next major support level is $30,500. This is where Bitcoin recovered from in the big correction on Jan. 11, when $2 billion worth of futures contracts were liquidated.

A pseudonymous trader known as “Alex,” for example, said that if Bitcoin heads back down to $30,000 with no visible buyer reaction, the trade would be to wait for $27,000 or a move back up above $30,000. He said:

“Decision making is dynamic. Nothing is set in stone. But most likely if price heads back down to 30K ‘ll be holding off next time. The gameplan is to have ammo to buy the dip (to redeploy). If 30K breaks absolutely no buying until down to 27Ks or back above 30K.”

Similarly, another popular pseudonymous trader known as “Mayne” said that losing $33,000 would likely result in $27,000. Prior to the weekly candle open on Jan. 18, the trader wrote:

“I think we hold here ($33,000) and get a solid bounce going into Monday. If we lose this level, Bitcoin is actually a scam and I denounce any association I ever had with it until $27k.”

4-hour Bitcoin price candle chart with levels. Source: TradingView.com, Mayne

What happens to altcoins if $30,000 breaks?

Alex emphasized that altcoins would likely get “obliterated” with 30% to 50% corrections if Bitcoin falls back down to $27,000.

Altcoins are typically less liquid and have a much lower volume than Bitcoin. Hence, during a bear cycle, altcoins often see steeper pullbacks compared to BTC. The trader explained:

“If for whatever reason $BTC falls to 27K, expect alts to get obliterated with 35%-50% intraday pullbacks. So in that scenario, buying alts will be better than buying $BTC. Definitively better buying alts there than buying $BTC on leverage. Identify the winners, and jump in.”

So far, Bitcoin is slowly recovering from the $34,500 support level, which is a positive trend. It also marks a whale cluster support level, meaning that whales are likely to protect that level with buy orders.

The presence of whale clusters at $34,500 explains why Bitcoin has been seeing strong bounces in that area in the last 48 hours. In the near term, the key to a convincing recovery would be protecting this level.

Infinite Fleet publisher launches STO led by $1M investment from Tether

Exordium, the publisher of the upcoming sci-fi strategy game Infinite Fleet, has announced a public security token offering, or STO, on the STOKR platform, starting Jan. 18.

The $8 million sale to raise funds for the long-touted blockchain-powered MMO (or massive multiplayer online game), is being led by a $1 million investment from Tether International, the issuer of the largest stablecoin Tether (USDT).

The public portion of the STO will have a hard-cap of $1 million and be limited to select European countries. This will include the majority of the European Union, with the notable exceptions of Germany and Belgium, due to regulatory restrictions.

However, unlike the majority of pre-sales to raise funds for upcoming games, participants will receive equity in the game’s publishing company and a share in future profits. The security tokens in this $8 million raise will represent a pro-rata right to 20% of Exordium’s profit.

Hope Fan, chief marketing officer of Infinite Fleet developer Pixelmatic, told Cointelegraph why Exordium chose to take the STO route, rather than hold a pre-sale of utility tokens or NFTs:

“We are trying to build a sustainable business with a long time horizon, while at the same time driving the adoption of crypto for both gaming and capital markets. Utility token sales also often fall in a regulatory grey area and hence it’s something we want to avoid. With an STO and a public filing, we are able to offer equity to the average person who supports the project, which is pretty cool.”

Investors will be able to invest as little as $100 equivalent to buy EXOeu security tokens, representing shares in the Exordium parent company, using a variety of currencies including euros, Bitcoin (BTC) and Tether.

The STOKR model democratizes public access to venture capital projects and integrates the Blockstream AMP platform on Bitcoin’s Liquid sidechain to issue the security tokens. Tether chief technology officer Paolo Ardoino explained the company’s interest in the blockchain gaming market:

“As a former MMORPG game developer myself, I see great potential in the application of crypto assets to multiplayer online games. It is a perfect match of two rapidly growing digital sectors with tremendous upside.”

Infinite Fleet first announced its intention to raise capital through securities sales on STOKR in April 2020, although the Samson Mow-helmed game raised $3.1 million through a private STO fundraising round on an alternative platform, BnkToTheFuture, in August 2020.

AC Milan employs blockchain to reach 450 million fans amid COVID lockdowns

European football giant AC Milan is the latest sporting organization to jump on the blockchain bandwagon after it announced the impending launch of the $ACM fan token on the Chiliz (CHZ) blockchain.

With the launch expected to commence in the coming weeks, ACM token holders will be able to use their tokens to redeem various exclusive rewards and take part in interactive activities with the club and players.

The addition of AC Milan takes the number of sporting organizations on the Chiliz blockchain to 20. These include fellow European football heavyweights FC Barcelona, Paris Saint-Germain, AS Roma, and Atletico Madrid, as well as various e-sports teams, and leading MMA organization, the UFC.

In the past, football fans have used cryptocurrency tokens as a way to engage with their favorite teams in a number of ways. Examples include fans of Cyprus-based club, Apollon FC, choosing the team’s first opponent for a friendly match, and even deciding on the club’s home and away strips for the 2020/2021 season.

Barcelona fans used the tokens to vote on the placement of a fan-designed artwork in the team dressing room, while Juventus fans had a say in choosing the club’s new celebration song. Holders of AS Roma’s fan token were even able to ask questions of the team’s head coach during a live press conference.

Chiliz tokens are accessible through the Socios.com app, which has reportedly been downloaded 450,000 times, generating token sales exceeding 14 million in number.

Many Chiliz tokens have since been listed on the Binance cryptocurrency exchange, which initially launched a staking program for various tokens, before opening up direct trading against Bitcoin (BTC) and Tether (USDT).

Casper Stylsvig, chief revenue officer of AC Milan, said the decision to employ blockchain technology was motivated partly by a desire to gain further outreach to the club’s 450 million global fans — a task made all the more important during COVID-19 lockdown:

“We are happy to join hands with Socios.com and welcome them to our family as a global partner. This partnership allows us to give our 450 million fans across the world another exciting way to interact with AC Milan, which is particularly important under the current circumstances created by the Covid-19 pandemic.”

Alexander Dreyfus, founder and CEO of Chiliz and Socios.com, said he hoped to establish fan-tokens as the primary fan-engagement tool and expects it to become a new revenue generator in the sports arena:

“Fans of the I Rossoneri (AC Milan) will be able to enjoy unprecedented engagement with their favourite team, influencing the club in polls, accessing VIP rewards, exclusive promotions, chat forums and much more.”

Socios claims to have generated $30 million in revenue for clubs and partners in little over 12-months since it launched. Its FC Barcelona (BAR) fan token sale sold out to the tune of $1.2 million in just 2 hours in June 2020, while trade volumes of the Juventus (JUV) and Paris Saint-Germain (PSG) tokens exceeded $300 million within days of being listed on Binance.