Clube de Regatas Flamengo will no longer receive a maximum of BRL 24 million due to a crisis in the fantoken market, in a partnership with the company Socios, linked to the Chiliz cryptocurrency.
According to information from Rodrigo Mattos’ column, the cryptocurrency market crisis at UOL has finally reached the fields.
Flamengo had a contract with the company since 2021, but with the crisis now in 2022 and continuing in 2023, the parties had to agree new terms.
Apparently, Socios should also look for other clubs to realign partnerships.
Flamengo is one of the first clubs to feel the impact of the loss of fan token revenue
Flamengo is considered one of the biggest football clubs in Brazil and is one of the first to feel the effects of the diminished interest in fan tokens.
With the withdrawal of investors from this market, which is currently only worth US$300 million worldwide, publishing companies are in trouble.
Socios is one of the largest issuers of fantokens, partner of Flamengo, Fluminense, Vasco, Palmeiras, Corinthians, São Paulo and other Brazilian clubs. It is not clear which ones besides Flamengo were waiting for transfers and will have to negotiate new contracts.
Livecoins has reached out to Socios for comment and is awaiting a statement from the company on the matter.
What are Phantom Tokens?
Fantokens are blockchain-based digital assets, typically traded on cryptocurrency exchanges. For example, in Brazil, fans can buy fan tokens directly from Socios, from Mercado Bitcoin or from Binance, which lists other options.
In possession of a fan token, fans of, for example, a football club can participate in the community and help make small decisions in the daily life of the club.
But there are fan tokens tied to UFC, eSports, and other categories besides football, giving collectors of such assets more options. Typically, companies in the cryptocurrency market form partnerships to create fan tokens for well-known brands. For example, the success of innovations has been in the spotlight in recent years.
The peak of attention came during the World Cup in Qatar, when selection fan tokens skyrocketed with investor interest in betting on the champions. In Brazil, it is worth remembering that the Chiliz Token (CHZ) has been one of the most traded and declared by investors to the Federal Tax Agency in recent months.
The Chiliz coin has recently inaugurated its own blockchain, targeting Web3 and trying to continue in the market.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
