Benfica a soccer club has announced a partnership with Socios.com and will join the crypto craze to launch a fan token
Benfica Works With Socios.com To Develop Fan Token
Benfica, Portugal’s greatest soccer team, announced on Tuesday that it will be the country’s first to join the crypto frenzy, working with blockchain-powered fan engagement startup Socios.com to develop a fan token.
“We have been paying very close attention to Digital Assets,” SL Benfica CEO Domingos Soares de Oliveira said in a statement issued by Socios.com.
“It’s a market which has been influential in our industry of late. Benfica is constantly focused on searching for and delivering a positive experience to our fanbase. We are delighted to be partnering with Socios”.
Fan tokens are a sort of cryptocurrency that allows holders to vote on a variety of minor club decisions.
Soccer Clubs Declares Support For Crypto Despite Warnings
Clubs are increasingly seeing them as a new source of revenue. Socios.com, which provides such tokens to Manchester City, Barcelona, Paris Saint-Germain, and other top clubs, claims that in 2021, they produced approximately $200 million for their partner clubs.
Fan tokens, like bitcoin and other digital currencies, are traded on exchanges. They, like other cryptocurrencies, are prone to huge price volatility.
Investors have been warned about digital assets by several agencies.
Nonetheless, numerous high-profile corporate and entertainment leaders have expressed support for crypto assets, including Tesla CEO Elon Musk, Twitter founder Jack Dorsey, and rapper Jay-Z.
After signing a two-year contract with PSG in August 2021, which included part of the French club’s cryptocurrency fan tokens in a “welcome package,” soccer great Lionel Messi struck a deal worth more than $20 million in March to promote Socios.com.
Following NFL quarterback Tom Brady and NBA star LeBron James, the Argentinian became the latest worldwide sports icon to enter the crypto realm. Messi’s partnership is part of a rising trend of cryptocurrency and soccer collaborations.
Benifica Numbers Not Back Into Balance
Due to the impact of the COVID-19 pandemic, Benfica announced its worst financial results in 11 years for the 2020–21 season, with losses of 17.4 million euros.
Even the return of supporters to the stadiums hasn’t brought the numbers back into balance. The club announced in March that it had lost 31.7 million euros in the first half of the 2021-22 season.
Luis Filipe Vieira, the president of Benfica, was arrested in July 2021 as part of an investigation into alleged tax fraud and money laundering. Following the news, Benfica SAD’s stock fell.