Paris Saint Germain’s (PSG) cryptocurrency plunged to 12% on Wednesday after the French football team was eliminated from the Champions League. The star-studded club was on course to qualify for the quarter-finals of Europe’s premier club competition, but they conceded three goals in 10 minutes and lost the series to Real Madrid, the competition’s most successful team.
In the wake of the unexpected result, the Fan Token plummeted to US$14.40 against US$16.27 at Tuesday’s close. The multimillionaire club, managed by Arab sheikhs, bet heavily on virtual assets, especially since the arrival of Lionel Messi.
PSG signed a contract in 2018 with the company Socios.com, which specializes in creating Fan Tokens, a type of cryptocurrency created on the Chiliz$HZ blockchain. By creating its own currency, the Paris club became the first team to dive headfirst into the world of cryptocurrencies. Fans who own these coins can participate in the club’s decisions by voting, as well as having various benefits such as VIP tickets.
When Leo confirmed his arrival at PSG, the coin reached a maximum value of 63 dollars (its initial price was 3.5 dollars) and showed an increase of 47% since the rumors about the arrival of the 10 of the Argentina National Team began. Currently, the Paris Saint-Germain token is around US$16, surpassing that of Manchester City, and has the highest market value.
Last September, a month after the signing of Messi, PSG closed a major sponsorship deal with crypto.com, a platform that allows the exchange of cryptocurrencies. The three-year deal is estimated to bring the French club around €30 million and will also be paid in its virtual currency.
Crypto.com is the third blockchain technology group to join PSG, which is mainly used for cryptocurrencies and NFTs. PSG has also entered the world of NFTs or unique non-fungible tokens, digital assets certified through blockchain technology, by launching a themed collection of these images by Parisian artist Ludo.
The club’s Fan Token is the most sought-after token in the world of football. Before the match against Real Madrid, the crypto token was US$6 above Manchester City’s and US$8 above Barcelona’s.