In times of extreme stress and market turmoil, sports entertainment has been a precious haven for people all over the world where they get a chance to root for their favorite players and teams while briefly forgetting the world’s worries.
Amidst the ongoing market volatility and a drop in cryptocurrency prices, sports fans caused jubilation as several fan coins bucked the downtrend on May 18 to post an additional 40% gain.
Top 7 currencies with highest price change in 24 hours. Source: Cointelegraph Markets Pro
Here’s a look at the recent developments that helped push Paris Saint-Germain (PSG), Juventus (JUV), FC Barcelona (BAR) and other fan icons to the top of the charts on May 18.
Chiliz Testnet Phase 2
The biggest driver of momentum for fan tokens appears to come from new developments on the Chiliz protocol, which runs Socios, a blockchain-based sports entertainment platform.
On May 17, Chiliz revealed the launch of Jalapeno, the second phase of the Scoville Test Network, which is part of the broader Chiliz mainnet launch.
Some of the new features that will be tested in the second phase include the launch of PepperSwap, which will provide a decentralized exchange and fan token testing surveys, which will allow token holders to start participating in polls and management votes on the protocol.
Ultimately, users will be able to interact with the community of specific fan tokens and vote on the developments they would like to see for this club through fan polls, a feature that many investors were initially interested in.
List of fan tokens in a new exchange
BitPanda’s new listing could be another reason why fan tokens soared on May 18.
According to BitPanda’s Twitter, at least seven fan tokens were listed on May 18.
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Code burns reduce display
Another factor that provides a boost to fan token prices is the Chiliz Head2Head burning contest which burns a portion of the circulating display of fan token based on the results of live matches between clubs.
Based on this design, the Head2Head burning mechanism will affect project tokens over time by helping to reduce the circulating supply of tokens, which will likely drive prices up if demand remains high.
It also provides a way to see a team’s performance reflected in its token offering, with better-performing teams seeing more of their token supply burned. If the Head2Head burning process proves effective, it will likely increase the value of a certain difference due to the reduced circulating supply.
