CHAIN ANALYSIS OF FAN TOKENS AND CHZ
IntroductionFrom currencies that resemble digital cash, to utility tokens that act as a fuel for blockchain ecosystems or security tokens, that represent shares in equity, the cryptocurrency market has seen several innovations since its inception. A relatively new addition to these innovations are fan tokens, which give fans the chance to interact with sports clubs, depending on which and how many tokens they are holding. These fan tokens are issued by Socios.com, whose app has been live since October 2019. In this article, I will take a closer look at blockchain statistics of fan tokens as well as blockchain statistics of Socios.com’s native utility token Chiliz. The data snapshot for this analysis was taken on March 1, 2020.
Chiliz HoldersLet’s start with the allocation of Socios’ utility token Chiliz among holders. Since CHZ is issued on both Ethereum and Binance Chain, we have to combine numbers of both chains to calculate the total amount of addresses holding CHZ. Currently, there are 216 addresses holding 1 million Chiliz or more, while 1,466 addresses are holding a minimum amount of 100,000 CHZ. Around six thousand addresses are holding at least 10,000 CHZ, whereas at least 1,000 CHZ are held by around seven thousand addresses.
Chiliz Transaction GrowthThe number of holders (especially with smaller balances) should increase, the more utility CHZ provides. The transaction growth of CHZ on Ethereum already displays the growing utilization of Chiliz. While there were just around one thousand transactions in October 2019, the transaction numbers went up once the Socios.com app went live in late October 2019. November 2019 already saw an 80% increase in transactions with 1,857 transactions compared to October. The transaction numbers then declined in December 2019 (1,492 transactions) and January 2020 (1,256 transactions). However, February 2020 saw a significant rise in transactions with a 400% increase compared to January 2020. This surge most likely happened due to several different fan token offerings going live on Socios.com, that could only be purchased with CHZ.
Fan Token Transaction GrowthMoving on to the transaction growth of fan tokens, we see a slightly different picture. In the first full month after the app release, the number of monthly fan token transactions already reached a peak of nearly 19 thousand transactions in November 2019. The following two months saw transaction numbers around the 15k mark, with 16 thousand transactions in December 2019 and 14 thousand transactions in January 2020. In February 2020, the number of fan token transactions declined to around 4 thousand transactions.
Fan tokens of seven clubs were distributed in this time span. Six football teams accounted for 96% of all fan token transactions, while one e-sports team caused 4% of all transactions. By far the biggest amount of fan token transactions were fan tokens of Juventus, they accounted for 71% of all fan token transactions. Paris Saint-Germain can be found in the second spot with 9% of all fan token transactions. The fan token transaction numbers of Galatasaray, Atlético de Madrid, AS Roma and OG are around the same mark with each accounting for 4-5% of all fan token transactions. FC Barcelona is the most recently launched fan token and although it has only been available in a few hour long token hunt so far, it has already accounted for 2% of all fan token transactions.
Obviously, the number of fan token transactions is highly dependent on the availability of different features in the Socios app. In the last four months, fan token transactions have been caused by either the token hunt or fan token offerings. The token hunt is a feature, in which users can catch fan tokens in an augmented reality setup while fan token offerings allow users to buy fan tokens in return for CHZ. Due to the nature of the token hunt, in which you can only catch one fan token at a time, it causes one transaction per each single token transfer. The fan token offering however, can distribute multiple fan tokens with one transaction. Therefore, the fan token hunt causes way more transactions than fan token offerings, which the data also displays: The fan token hunt wasn’t that often available in the Socios app during February, than it was from November till January, hence the declining transaction numbers.
Fan Token DistributionAll these fan token transactions distributed tokens to individual users. Some transactions distributed smaller amounts of just one fan token at a time to users, especially within the token hunt. Other transactions in fan token offerings distributed double-digit or even triple-digit amounts of fan tokens with just one transaction. Looking at the cumulative number of distributed fan tokens over time, we can see that already 54 thousand fan tokens were distributed by the end of November 2019. That number went up to 101 thousand fan tokens by the end of December 2019. At the end of January 2020, a total number of 124 thousand fan tokens were distributed, which increased to a number of 152 thousand fan tokens by the end of February 2020.
Similar to fan token transactions, Juventus is also in the lead when it comes to the share of overall distributed fan tokens per club. 73% of all fan tokens distributed until the end of February are fan tokens of Juventus. In the second spot, we can find Paris Saint-Germain with 11% of all fan tokens. Galatasaray is ranked third with 9% of all fan tokens. The remaining four clubs account for 7% of all fan tokens, with Atlético de Madrid accounting for 3%, AS Roma for 2% and OG and FC Barcelona for 1% each.
These numbers offer interesting insights. When we analyze the monthly numbers of distributed fan tokens, we can see that around 50 thousand fan tokens were distributed in each November and December 2019, while growth slowed down a bit in January and February 2020, with around 25 thousand fan tokens distributed per month. These numbers might be a bit surprising, since the fan token of Juventus was the only fan token available in 2019, while several other fan tokens were launched in the first two months of 2020, but it simply shows that the Juventus fan token has been the highest demanded fan token thus far.
Looking at other fan tokens, we can see clear discrepancies between tokens that have been only distributed via the token hunt versus tokens that also had a successful fan token offering. The fan tokens of Galatasaray accounted for just 5% of all fan token transactions, although they represent 9% of all distributed fan tokens. It outlines, that Galatasaray had the highest rate of distributed fan tokens per transaction with 4.5. The fan tokens of OG or FC Barcelona, that have been only distributed via the token hunt so far, have a ratio of one distributed fan token per transaction.
Wrap-upIn this article, we discussed transaction and distribution numbers of Socios.com’s utility token CHZ alongside their issued fan tokens. Currently, there are around six thousand addresses holding ten thousand CHZ or more. The monthly transaction numbers for CHZ on Ethereum went up 400% in February as soon as more fan token offerings were available in the Socios app. With the token hunt not being available so frequently in 2020 than in 2019, the growth of fan token transactions has slowed down over the last months. The number of overall distributed fan tokens has been growing with around 50 thousand fan tokens distributed in each November and December 2019 and 25 thousand distributed fan tokens in each January and February 2020. Considering numbers per club, the fan tokens of Juventus have been the highest demanded thus far with a share of 73% of all distributed fan tokens. All in all, it is really interesting to see the growth of the Socios ecosystem and it will be exciting to watch, how the numbers discussed in this article will develop over the upcoming months.
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