“Crypto Currencies’ Red Sea” by Jim Makos is licensed under CC BY-ND 2.0
“Be more than a fan” is the tagline of Socios, a rapidly growing European company that is making big waves in the world of utility tokens. Socios states it believes passion should be recognized and that every sports fan has a right to make their voice heard.
Socios launched in late 2019, the brainchild of French internet entrepreneur Alexandre Dreyfus. The Lyon-born businessman has a long and illustrious history with online projects. He was the man behind Chiligaming, an online poker and casino site, which he later sold to Las Vegas casino group Bally’s for a reported eight-figure fee. Dreyfus plowed his resources into The Global Poker Index and the Global Poker League in an attempt to “sportify” poker, his words not ours. Now his attention is firmly on Socios.
What Is Socios and How Does It Work?
Dreyfus’ Socios has exploded into life with more than 1.2 million downloads of its app and claims of 900,000 active users. Fans of the biggest sports teams purchase a “fan token” for a launch price of £2/$2/€2, which Social promises gives them unparalleled access to the inner workings of their favorite team.
Chiliz owns the platform, which has an eponymous cryptocurrency used to buy the Socios fan tokens. The Chiliz cryptocurrency is traded on major exchanges. Its value has skyrocketed this year. Chiliz (CHZ) $0.0209 on January 1, 2021; the same currency now changes hands at $0.2713.
The Socios website claims to give owners of fan tokens the chance to share an influence of their team, help influence key decisions by giving them voting rights on official polls, and the chance to earn special rewards not available to your run of the mill fans. Those rewards include meet and greets with the players and access to merchandise and events.
Who Has Socios Partnered With?
Some of the best-known sports teams in the world have signed on the dotted line. Soccer giants FC Barcelona and Juventus were among the first stellar teams to jump on board. Paris St. Germain, AC Milan, and Inter Milan followed suit. The roster of partners now includes NBA franchises Philadelphia 76ers, Chicago Bulls, Golden State Warriors, and several more. There are even Socios fan tokens for the UFC, cricket, and even gaming.
Soccer teams make up the bulk of Socios partners. Dreyfus says it is his job to give a voice to the 99 percent of fans that never step foot in a stadium. A soccer team may have a one million strong fanbase, but only 50,000 of them make the trip to the stadium, purchase tickets, etc.
It has not been plain sailing, however. In 2019, Premier League team West Ham United pulled out of a deal with Socios following a backlash from the London team’s fans. Supporters argued the club was attempting to monetize their support.
Similar criticism was levied from supporters of Arsenal, Leeds United, and Aston Villa. Even the UK’s Football Supporters’ Association chimed in.
It Is Big Business for Social at Least
Socios has liquidated $80 million since March 2021, showing the lure of the so-called fan tokens. Furthermore, it claims to have made more than $100 million for its partners during the current year.
Dreyfus’ company signed a massive deal with reigning Serie A side Inter Milan. It became the Italian outfit’s principal shirt sponsor in what was a €20 million deal. The deal ended Inter’s 23-year association with tire manufacturer Pirelli.
Whether groups of supporters like the idea of Socios or not, it appears they are here to stay. More partners are added on a seemingly weekly basis, and Dreyfus is hellbent on having a fan token available for every major sports team on the planet.
