Part of Leo Messi’s Transfer Fee Paid in Crypto; PSG Token Spikes

  • Six-Time Ballon d’Or winner, Lionel Messi has joined French soccer club PSG, which handed him PSG Tokens as part of the deal
  • According to PSG, the move is the “most innovative and avant-garde brand in sport globally.”
  • After the soccer icon joined the Parisian club, the trade volume of the PSG token topped $1.2 billion within days.
  • The token has also been through a week-long rally that has seen PSG token climb to as high as $61.23 on Tuesday.

After 20 years at Barcelona, the Argentine talisman signed for PSG on Tuesday on a free transfer. Barcelona lost the six-times Ballon d’Or winner after they were unable to fulfil the player’s new contract.

Barcelona had attempted to renew his contract, which expired on June 30th, but failed to reach an agreement due to financial and structural obstacles, even despite the superstar agreeing to cut his salary by half, going from £100m to around £50m per year, In the end, Barcelona were unable to keep the 34-year old on the books due to La Liga restrictions.

PSG Sign Messi, Paying Part in Crypto

On the 8th of August, Paris Saint Germain (PSG) secured the signature of Lionel Messi on a two-year deal, with an optional extension, that will net him an annual salary of $41 million, plus bonuses.

On Thursday, the Parisian club announced that part of Lionel Messi’s wage package includes the cryptocurrency ”$PSG Fan Tokens.” A club spokesperson enthused that the move is the “most innovative and avant-garde brand in sport globally.”

PSG Token Spikes in Return

Prior to the move of Leo Messi, the fan token of Paris Saint Germain, PSG token, had not been a top performing, or even well known, crypto. The token opened August at $24.96 and achieved a trading volume of $31,239,176 on the same day.

Paying one of the most iconic soccer players of all time in PSG tokens seems to have had a positive impact on the fan token. A week-long rally saw the PSG token climb to as high as $61.23. PSG token currently trades at $42.2, at the time of writing, and its trade volume has sky-rocketed, reaching $264,607,351 over the last 24 hours.

The fan token of PSG is now ranked as the 318th biggest crypto, with a market cap of $122.43 million, compared to the start of August when it held a market cap of just $29.76 million. 

August price chart for the PSG token. Source: CoinMarketCap

In the first two days that followed the Messi signing, the trade volume of the fan token topped $1.2 billion. $657.15 million and $629.74 million in PSG tokens were traded on the 9th and 10th of August alone, which was more than the entire volume of July.

On The Flipside

  • The excitement around PSG token may be short-lived.
  • Investors may see the pump of PSG tokens as an opportunity to short the crypto.
  • This token is already down by more than 30% from its 7 day high of $61.23.

What Are PSG Tokens?

PSG tokens are a fan token created by the Soccer club to enable fans and community members to get involved in the decisions affecting the club.

The fan token works with an app on which  token holders can select the message that will appear on the captain’s armband on game day, the design of the Paris Saint Germain bus and other similar things. 

The token also gives them the power to choose the design of the curtain in the players’ tunnel at the Parc des Princes stadium. Fans are also able to vote on the goal of the season, and who the end of the season awards are handed to by using PSG tokens.

Why You Should Care?

PSG paying part of Messi’s fee in crypto is a fulfilment of the promises of cryptocurrencies: to find use in every sector of the economy. By gaining a foothold in Soccer, the publicity of Messi’s PSG tokens may serve to widen the adoption and acceptance of crypto at large.

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

    Author
    Milko Trajcevski

    Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia