The cost of being partly paid in crypto may have got heavier for Lionel Messi, one of the world's greatest footballers, when he joined Paris Saint-Germain (PSG) last August as the price continues to struggle.
He is reported to have received a "significant" payment in the PSG crypto fan tokens. When he signed the coin's price surged to $61.23 (it had already been rising on rumours he was about to sign).
Now (13 January) it is trading at just $15. If the deal was signed around 10 August when the price was close to $40 it would mean his "significant" number of coins would be worth 37% of what they were.
PSG was one of the first football clubs to launch its own cryptocurrency, the PSG Fan Token. Football fan tokens emerged during the Covid-19 pandemic as a way for clubs to engage with their fans and generate new revenue streams while matches were suspended or played without an audience. The PSG cryptocurrency is one of several fan tokens launched since the start of 2020.
So, what is the PSG coin and what is it used for? What drives its value? Could Messi get his value back?
In this article, we answer those questions and look at some forecasts for the coin’s long-term price outlook.
PSG launched one of the first football fan tokens
PSG was one of the first football clubs to launch a fan cryptocurrency on the Chiliz blockchain, which runs the Socios.com platform for sports crypto tokens. The partnership was announced in 2018 and the Paris Saint-Germain Fan Token launched in January 2020.
Hundreds of thousands of CHZ coins and a limited number of PSG Fan Tokens were made available for free from mid-January until the launch on 28 January 2020 through the Socios.com app. Fans who collected CHZ coins in daily token hunts were able to use the coins to purchase PSG Fan Tokens.
Holders of the Paris Saint-Germain Fan Token earn reward points that give them the opportunity to access unique experiences and exclusive club merchandise. The club said: “Experiences could include the chance to watch a match from the VIP area at the Parc des Princes and meet stars from the team as well as club legends.
Holding the token also gives fans the ability to vote in several binding and non-binding polls on the Socios.com app each season. “All polls take place in a secure environment, and all votes cast are registered on the blockchain, so the results are transparent and can’t be altered,” PSG said. The first vote when the token launched allowed fans to choose an inspirational message to go inside the captain’s armband.
Since the token launched, Paris Saint-Germain fans have been able to choose a motivational message to be displayed on the wall of the players’ dressing room before a key game, as well as voting on the goal of the season and the winners of awards at the end of the season. Fans have also received personal video calls from players via the Socios.com platform.
Paris Saint-Germain has been moving deeper into the cryptocurrency space in recent months. In August, the club included the Paris Saint-Germain Fan Token in the welcome package it signed with star player Lionel Messi in the August player transfer window. The deal was the first time the club concluded a player signing including PSG tokens.
On 10 September 2021, the club announced a deal with cryptocurrency platform Crypto.com. The partnership will include the release of exclusive non-fungible tokens (NFTs) on the platform. Crypto.com will pay a “significant portion” of the sponsorship fee using the CRO cryptocurrency token.
PSG price reflects fan token volatility
Each Paris Saint-Germain Fan Token was priced at around €2 when it launched, which was equivalent to around $2.20. While the coin is designed for fans to get involved in the team and win rewards, it can also be traded on exchanges much like other cryptocurrencies, which has attracted investors looking to make a profit from buying and selling.
The price briefly touched $10 in August 2020 then fell back to $5.78 in September. It spiked in December 2020 from $9.15 at the start of the month to $29.96 on 21 December. It dropped back to $14.07 on 23 December and continued to decline until it bottomed out at $7.82 on 4 February 2021.
The Paris Saint-Germain Fan Token price peaked at a high of $56.04 on 26 April, during the broader cryptocurrency rally. It then followed the markets lower, trading at $11.68 on 22 June. The price spiked again to $49.90 on 9 August, as interest in the token surged during the club’s summer transfer window. Trading volumes exceeded $1.2bn in the days leading up to Messi’s move, the club said. Since that excitement died down the price has been in a steady decline to reach $15 some 75% off its August peak at the time of writing (13 January).
There are currently 3.1 million PSG Fan Tokens in circulation, out of a maximum supply of 20 million. At the current price, the token has a market capitalisation of around $47m.
What is the outlook for the PSG token price? Is this football crypto an investment you should consider for your portfolio?
PSG coin price prediction: what is the long-term outlook
The PSG crypto price prediction from algorithm-based forecasting site Wallet Investor projects that the price will rise to $26.4 by early 2023, then reach $76 in a further four years.
The PSG fan token price prediction from DigitalCoin estimates that the price will average $20.7 in 2022, and climb to an average of $31 in 2025. By 2029, it predicts the price will average $65.
The PSG/USD forecast from PricePrediction predicts that for 2022, projecting the coin will average $22.1, but it estimates that the price will climb to $64.6 by 2025 and soar to $422 by 2030.
Gov Capital has a more bullish short-term outlook where it predicts the PSG cryptocurrency coin may reach $85 at the start of 2023. However it then goes bullish for the long term and projects a price will more than double to $632 by early 2027.
It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it hard to predict what the price of the coin will be in a few hours – and even harder to give longer-term estimates.
We recommend you always do your own research and consider the latest market trends and news, technical and fundamental analysis, and expert opinion before making any investment decisions. And never invest money you cannot afford to lose.
Fan tokens are a relatively new form of cryptocurrency, which carry a higher risk than other types of assets. Whether the PSG coin is a good investment for you depends on your personal financial circumstances, risk tolerance and the other investments in your portfolio. It’s important that you always do your own research. And never invest more than you can afford to lose.
PSG tokens are traded on the Socios.com platform, as well as cryptocurrency exchanges such as Binance, Gate.io, Upbit and ZT.
The PSG’s performance is influenced by prices and sentiment on the broader cryptocurrency markets, as well as interest in the Paris Saint-Germain football club.
Forecasting sites project that the price for the PSG Fan Token will rise in the future. However, while they do predict that the coin could appreciate, it’s important to keep in mind that forecasters can get their estimates wrong.
Price forecasts estimate that the price for the PSG Fan Token will rise to $100 in the coming years, with some projecting that the price will reach that level by 2025. Whether you believe those predictions is a decision only you can make. It’s vital to carry out your own research.
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