Price Analysis 20/09: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, ADA
OCBC has become the first Singapore-based bank to join JPMorgan Chase’s interbank blockchain network.
According to a Business Times Singapore report on Sept. 20, a total of 134 banks from the Asia-Pacific region are now participants in JPMorgan’s blockchain-powered interbank information network (IIN).
OCBC is the second-largest bank in Southeast Asia by assets and among the larger financial institutions in Asia-Pacific.
343 banks have joined JPMorgan’s network since 2018
These 134 banks comprise almost 40% of the 343 banks that have joined IIN since 2018. The network’s largest national bloc is Japan, where 80 banks are participants.
IIN first launched as a pilot in 2017, designed with the aim of reducing friction in the interbank exchange of global payments data.
The network is built on JPMorgan’s Ethereum-based, proprietary and permissioned, i.e. private blockchain “Quorum.”
In a statement, John Hunter — global head of clearing at JPMorgan Chase — outlined that:
“The intent with IIN was always to develop a meaningful ecosystem of bank users, all focused on harnessing emerging technologies such as blockchain to better address the complex cross border payments industry.”
Deutsche Bank a recently-announced network member
As reported, Germany’s largest bank, Deutsche Bank, joined IIN earlier this month.
JPMorgan has said it is targeting a total of 400 agreements with banks by the end of 2019, hinting that further leading banks are poised to join the network in the near future.
Beyond its IIN and other Quorum innovations, the banking giant has been in the industry limelight for its blockchain-powered stablecoin dubbed JPMCoin, unveiled in February of this year.
Thursday, Sept. 19 — Bitcoin (BTC) price is back up and seems to be stabilizing just above the $10,200 price mark after experiencing a sudden drop of $500 in minutes earlier today.
Market visualization. Source: Coin360
Bitcoin is trading sideways again
Bitcoin’s sideways trading behavior has become standard operating procedure in recent months, with long periods of sideways action giving way to sudden drops in prices, only to shoot back up to previous price levels.
Bitcoin price has started to trade sideways once again, currently at around $10,290 per coin, according to data from Coin360.
Bitcoin 24-hour price chart. Source: Coin36
Some have tried to explain why BTC/USD began gaining and losing several hundred dollars within minutes at irregular intervals. One theory revolved around margin trading — an increasingly popular tool offered by major exchanges such as Binance and, most notably, BitMEX.
Twitter account Squeeze noted: “The effect of cascading margin calls and stop loss triggers causing $300 slippage between XBT perpetual swaps on Bitmex vs Spot BTC,”
While Bitcoin is back to showing sideways price movement, Ether (ETH) is continuing its bullish move to just above the $220 price mark. The most popular altcoin is currently trading at $221.39, showing impressive gains of more than 5% on the day.
Ether 24-hour price chart. Source: Coin360
After weeks of sideways trading, Ripple’s XRP token took the lead in the top-20 altcoins with impressive gains just a few days ago. XRP was able to hold on to most of its gains and is currently trading at $0.30, although it is showing a loss of almost 1% on the day.
XRP 7-day price chart. Source: Coin360
Top-20 altcoins mostly in the red
Most of the top-20 altcoins are seeing red today, with the exception of Ether.
The biggest top-20 losers of the day are Monero (XMR) and NEO, with both coins showing losses close to 3%. Ethereum Classic (ETC) and Bitcoin SV (BSV) aren’t faring much better, which are showing losses of around 2% each.
The overall cryptocurrency market cap sits at $272.9 billion, with Bitcoin making up 67.6% of the total.
Ethereum network participants are attempting to raise the network’s block size as a direct response to network congestion.
Gas limit on course to become 10 million per block
As various parties including co-founder Vitalik Buterin confirmed this week, testing is currently underway to improve network performance and reduce transaction fees.
“Given the current #Ethereum network congestion we have started to test raising the block gas limit to 10M gas,” mining pool Bitfly tweeted on Sept. 14.
The move follows considerable upticks in Ethereum network usage, largely due to stablecoin Tether (USDT), which has shifted its reliance from Bitcoin via the Omni Layer to the Ethereum blockchain.
According to research data from monitoring resource Coin Metrics, as of Sept. 15, Ethereum users paid almost as much in daily transaction fees as Bitcoin users: $182,899 versus $185,993, respectively.
Since Sept. 1, the average Ethereum transaction fee has increased from just over $0.11 to just under $0.39, data from Bitinfocharts shows.
Ether benefits before Bitcoin break
Gas is the token, which Ethereum users pay for performing any operation on the network. A shift to 10 million gas per block is considerable, and would translate to a total capacity increase of 25%.
News of the changes appeared to buoy market of Ethereum’s native token, Ether (ETH), which earlier this week put in solid gains as other cryptocurrencies tracked sideways.
A sudden dip in Bitcoin (BTC) subsequently sent altcoin markets lower, ETH/USD still holding onto support above $200 at press time.
Arab Bank Switzerland has partnered with blockchain technology firm Taurus to offer Bitcoin (BTC) and Ether (ETH) custody and brokerage services to its clients.
Swissinfo reported the development on Sept. 19.
Serge Robin, the CEO of Arab Bank Switzerland — a Swiss institution that forms part of the Jordan-headquartered Arab Bank group — said:
“We firmly believe that blockchain will disrupt the financial industry as we know it and we intend to be amongst the first banks to offer digital asset services to our clients in a secure and regulated environment.”
Switzerland’s blockchain and banking sectors
Last month, Switzerland’s watchdog, the Financial Market Supervisory Authority (FINMA), granted banking and securities dealer licenses to two crypto-focused banks: Seba Crypto AG and Sygnum.
Also in August, FINMA released new guidance on regulatory requirements for blockchain-based payments, targeted at cryptocurrency exchanges, wallet providers and trading platforms.
Among the country’s traditional financial institutions, Swiss private bank Maerki Baumann revealed this summer that it had experienced a deluge of 400 new clients wanting to tap its future blockchain offerings since it revealed its interest in the sector.
While banking support for the nascent industry remains a complex issue in the country — with many legacy institutions maintaining a highly risk-averse position on FINMA’s recommendation — Hypothekarbank Lenzburg took the leap to become the first Swiss bank to provide enterprise accounts for blockchain and crypto-related fintech companies in the summer of 2018.
Over the course of the past few weeks, the global cryptocurrency community bore witness to two major announcements related to stablecoins — with the first being the launch of Paxos’s gold-backed Ethereum token, PAX Gold (PAXG), and the other being the release of Binance’s cryptocoin backed by the United States dollar (BUSD).
Paxos, a global digital asset trust firm, announced the launch of its PAXG token via a press release a few days back. In the document, the firm claims that its product is the world’s first crypto asset to be fully redeemable in exchange for physical gold. Not only that, but the stablecoin has also received a regulatory nod of approval from the New York State Department of Financial Services (NYDFS), with the government body referring to PAXG as the first gold-backed digital currency to become eligible for trading in the state of New York.
Additionally, each PAXG token is backed by 1 fine troy ounce of London Good Delivery gold that has been stocked across discreet vaults spread out around London. If that wasn’t enough, token owners are provided with complete control of the gold that is associated with their holdings and have the option of moving their tokens like any other ERC-20-based crypto, thereby making it significantly easier for people to trade physical gold without having to bother about the logistics. Elaborating further on the utility of PAXG, Dorothy Chang, Paxos’ vice president of marketing and communications, told Cointelegraph:
“PAX Gold stands out because we uniquely have deep experience in both the traditional gold market as well as in asset tokenization. In the traditional gold market, we have a suite of products that have been used by the legacy gold trading markets. For example, our Confirmation Service has been used to confirm over 500k gold trades worth over $1T. Being this ingrained in the gold market has enabled us to draw on our relationships with leaders in the space — like Brink’s and INTL FCStone — to develop the operational infrastructure to make PAX Gold available and redeemable for physical gold.”
On the topic of whether the market has seen offerings similar to PAXG in the past, Cointelegraph reached out to Andy Hoffman, the founder of CryptoGoldCentral — a professional cryptocurrency consulting firm that provides altcoin enthusiasts and developers with strategies on how to market existing cryptocurrencies as well as those that have yet to be launched.
He pointed out that while an exact analogous product has not been seen in the market before, PAXG essentially resembles a gold exchange-traded fund (ETF) — such as the HSBC-backed GLD ETF — that carries with it a host of tangible financial risks.
Additionally, Hoffman also highlighted that, having previously spent over six years working as the marketing director of Miles Franklin (a major bullion dealer that manages gold, silver and platinum deposits with Brinks and the Dakota Depository), he couldn’t foresee investors flocking to PAXG:
“Can’t see why anyone who wanted to exposure to REAL gold would use Paxos, rather than Miles Franklin or even GLD ETF.”
So, what makes PAXG unique?
As mentioned previously, PAXG is an ERC-20 token that has been built on the Ethereum blockchain and is backed by physical gold, meaning it can be traded and moved anywhere around the globe with the touch of a button. Not only that, but the token also allows gold enthusiasts to own a fraction of LBMA-accredited London Good Delivery gold bars.
Paxos is regulated by the NYDFS and its associated PAXG token is one of just three crypto offerings to have received the regulator’s seal of approval. In this regard, other key facets related to PAXG that are worth highlighting include:
- The tokens are fully-backed by physical gold that is attested by a third-party auditor on a monthly basis.
- As things stand, PAX Gold is the only gold token available on the market today that can be exchanged in place of LBMA-accredited Good Delivery gold bullion bars. Smaller amounts can also be redeemed via a host of physical retailers located across the globe.
- Institutional players dealing with PAXG have the option of redeeming their tokens in favor of unallocated Loco London Gold.
- Using Paxos’ native exchange platform, investors can convert their PAXG holdings into fiat, physical or unallocated gold. Also, PAXG can be traded across a whole host of popular crypto exchanges that support ERC-20 tokens.
- From a fee standpoint, Paxos charges its users anywhere between 0.03%–1% (based on volume tiers) for redeeming their PAXG coins. Similarly, the company charges a flat 0.02% as on-chain Ethereum transaction fees and, as with any ERC-20 token, nominal Ethereum gas fees are also applicable on all transactions.
- PAXG holders have the option of looking up niche details (i.e., serial numbers, brand codes, gross weight, etc.) related to their stored gold reserves — a feature that is quite rare these days.
Binance and Paxos launch a dollar-backed stablecoin
Last week, Binance announced that it was entering into a partnership with Paxos in order to launch a USD-backed stablecoin called the BUSD. The digital currency follows in the footsteps of other stablecoins — such as TrueUSD (TUSD), USDCoin (USDC) and Gemini Dollar (GUSD) — and along with PAXG, it is one of the three Paxos created digital currencies to have received a regulatory green light from the NYDFS, with the other one being Paxos Standard (PAX).
On the subject, Chang told Cointelegraph that by gaining approval from the NYDFS for the BUSD stablecoin, Binance was helping to stabilize the global crypto market. She then went on to say:
“Paxos will be the issuer and custodian of all BUSD tokens. With BUSD, there will be monthly audits and every customer acquiring BUSD through Paxos or Binance will go through our KYC/AML compliance process. We believe that with Binance’s network reach and our trusted, regulated service, we will be able to make a huge impact on the crypto markets. This is an exciting step towards bringing more stability to crypto.”
From a technical standpoint, BUSD will be made available for purchase at a ratio of one-to-one ratio with the U.S. dollar. Additionally, trades against Bitcoin (BTC) can be facilitated via Paxos’s native exchange platform, while those against Binance Coin (BNB) and XRP can be initiated on Binance.com.
Related: Binance to Launch US Platform Soon, Helped by a Little-Known Partner
Lastly, the launch of these crypto offerings suggests that regulatory agencies around the globe might finally be warming up to the idea of digital currencies and the potential they have to offer. On the subject, Hoffman added:
“There are many new stablecoins now — and the fact that they are being regulatorily approved, generally speaking, speaks volumes towards the fact that governments are (begrudgingly) starting to accept the fact that crypto is here to stay — both in the U.S. and globally. The Bakkt futures exchange is one such example, as well as last week’s acceptance of the VanEck/SolidX ETF for 144a investors…and I absolutely expect a broad ETF approval for all investors in the near-term.”
He also believes that the digital age is finally upon us and that by this time next year, investors should not be surprised to see Bitcoin’s hash rate and price scale up to new all-time highs.
What’s the deal with stablecoins? What advantages do they offer?
Most crypto enthusiasts are probably well aware of the volatility that the digital asset market witnesses on a near-daily basis. In this regard, stablecoins can essentially be thought of as crypto offerings whose prices are measured in fiat and have their value pegged to real-world assets such as the U.S. dollar, the euro, yuan or even other commodities such as oil, gold, silver and so on.
Related: Digital Yuan: Weapon in US Trade War or Attempt to Manipulate Bitcoin?
Also, like many other digital tokens, stablecoins also make use of blockchain technology and are usually decentralized in nature, meaning that they cannot be controlled by a centralized government agency or institution.
Talking about the advantages of PAXG, Chang pointed out that by tokenizing gold, it will become easy for investors to acquire the precious yellow metal without having to physically store it. She further elaborated:
“By putting gold on the blockchain and tokenizing it, we’re making it easier to trade, divide and leverage gold against other investments. We’re making PAX Gold as easy to own and trade as Bitcoin. We are also democratizing investment in gold as there is no minimum investment in PAX Gold and it can be sent anywhere in the world, 24/7.”
Tuesday, Sept. 17 — Altcoins are showing massive upward price movements, while the No.1 cryptocurrency trades flat at around $10,200.
Market visualization. Source: Coin360
While the number of Bitcoin (BTC) wallet addresses holding a minimum of 10 BTC — worth over $100,000 — has hit an all-time high, the Bitcoin price continues to trade sideways, with an intraday high of around $10,320.
BTC has been slowly trading downwards to its current trading price of $10,216 and is showing a small gain of 0.8% on the day, according to data from Coin360.
Bitcoin 24 hour price chart. Source: Coin360
Millenials banking on Bitcoin
Cointelegraph reported previously that London-based law firm Michelmores LLP surveyed affluent millennials in the United Kingdom and discovered that 20% have invested in Bitcoin and other cryptocurrencies.
That millennials around the world love Bitcoin is supported by the results of another, United States-wide survey which indicated that cryptocurrencies are three times more popular among American millennials as a top-choice, long-term investment option than for Generation X.
While Bitcoin stalls, Ether (ETH) is continuing its bullish move to well above the $200 price mark. The most popular altcoin is currently trading at $208.26, showing impressive gains of 8.76% on the day.
Ether 24-hour price chart. Source: Coin360
After weeks of sideways trading, Ripple’s XRP token is taking the lead in the top-20 altcoins with a massive gain of more than 10% on the day. At press time, the world’s third-most popular coin is trading at $0.286 per coin.
XRP 7-day price chart. Source: Coin360
Cointelegraph reported previously that Ripple’s CEO Brad Garlinghouse rejected accusations that his company manipulates XRP price in an interview with CNN anchor Julia Chatterley. The CEO added that “In the XRP community, Ripple is the largest owner, and we are the most interested party in the success of the XRP ecosystem.”
Top-20 altcoins continue explosive bull run
Altcoins are currently on a roll, with XRP taking the lead, closely followed by Tron (TRX) and Tezos (XTZ), which are showing gains of close to 10% on the day each. Other notable gainers are IOTA and Stellar (XLM) with each more than 7% gain.
The overall cryptocurrency market cap sits at $270.1 billion, with Bitcoin making up 68.3% of the total.
There are mixed indicators regarding the current progress or stalling of blockchain adoption throughout the enterprise world. Research has indicated that investments have dropped by over half over the last year, contrary to other research showing a growing sentiment toward the vitality of blockchain adoption as an innovative technology.
For example, Research by CB Insights in 2019 indicates that there may be a separation between corporate adoption and corporate investments into blockchain companies. As reported previously by Cointelegraph, blockchain investments have dropped by up to 60% since 2018. However, this decline does not seem to have affected the positive outlook of many executives on the technology, with many showing not only support but a clear understanding of the necessity to adopt blockchain technology in order to stay competitive.
In 2018, PwC conducted a survey of 600 high-level executives in regard to their views on blockchain technology. The research provided some insightful results with some surprising twists. Clearly, blockchain is here to stay and has a very real global presence within enterprise. Most notably, 84% of respondents indicated that their organizations’ processes involve varying degrees of blockchain technology, but at least 25% said their project is either live or in pilot testing.
Research conducted by Deloitte supports this data, with the belief that blockchain has a compelling business case growing among executives — from 74% in 2018 to 83% in 2019. In fact, four out of every five respondents of the 1,400 surveyed indicated that the enterprises around them are either already looking into blockchain technology or already implementing it. How has the state of blockchain adoption in enterprise developed since the initial hype of 2017, and what projections can be understood from the results of these surveys?
Although the executives surveyed by PwC confirmed that blockchain surpasses the existing boundaries of many industries, 46% of respondents indicated that financial services are the most advanced industry in blockchain development. Less than one in five believe industrial products and manufacturing to be leading the development.
Related: Blockchain Democratizes a Lot of Things: Hyperledger’s Marta Piekarska
Marta Piekarska-Geater, director of ecosystem at Hyperledger, has also seen a shift from the initial hype around cryptocurrencies to real-world application in enterprise. She explained to Cointelegraph:
“Now is the time for any organization that wants to help shape the role of blockchain and the DLT technology at play in their business and their industry to get involved. Bitcoin made blockchain mainstream and brought the hype to the field. Now the hype is passing, and we are observing how enterprises are looking at real life solutions using blockchain.”
Additionally, according to Gartner, 82% of reported blockchain use cases were within the financial sector in 2017. This indicates that, although the industry may have been one of the first to adopt blockchain en masse, the potential of blockchain has been realized by a much wider spread of industries for real use cases.
Erik Voorhees of Shapeshift also believes that blockchain application has greater potential than just the financial sector, telling Cointelegraph:
“Blockchains are useful for many types of use cases; basically wherever there is value in decentralizing trust and creating immutable records that no specific person or entity can alter. Money is a great first use case, but other ones include financial products, derivatives, gambling, interoperable gaming, voting, personal information (such as ID or health records), etc. However, sound money is *such* an important use case that it is justifiable for many companies and much of the crypto/blockchain industry to focus purely on this specific application.”
However, research by the Aelf network, an enterprise-ready blockchain platform, indicates that the supply and logistics industry is ahead of financial services in blockchain development. Over 900 companies were identified as having a relationship with blockchain technology, more than 30% of which belong to the supply and logistics industry, compared to less than 25% in the financial industry. This shows a potential disconnect between executives and development across industries.
Coming as no surprise, PwC’s survey revealed that the two regions considered as leaders of this emerging technology were the United States and China. Additionally, the results indicate that blockchain development in China is expected to grow rapidly, overtaking that of the U.S. as confidence in the U.S.’s ability to lead the industry could be waning due to the overall regulatory uncertainty regarding crypto and blockchain.
Related: Why Is the US Not Yet a Leader in Crypto Regulation? Experts Answer
In an unexpected twist, Australia placed third as the most popular region, with such a position expected to be consolidated over the next five years. More surprisingly, South Korea was not included in the top-eight blockchain leaders.
The top challenge — as seen by almost half of the Deloitte respondents (48%) — continues to revolve around uncertain regulations, although this concern appears to have reduced in 2019, according to Deloitte’s survey.
In regard to other complications, the underlying theme across both the PwC and Deloitte surveys appears to revolve around sensitive data and intellectual property — as well as a lack of trust between users. In fact, this concern appears to have grown in 2019, according to Deloitte, demonstrated by a 20% growth in respondents concerned about the sensitivity of competitive information.
This issue of trust seems to be counterintuitive to blockchain technology, as one of the fundamentals of blockchain is to create a trustless environment. However, many companies have identified that there are still many intersections that require a strong basis of trust.
Blockchain adoption is harder than expected
According to a CB Insights report published by Bloomberg on July 18, 2019, the support drawn by companies in the blockchain space in 2019 is set to drop by around 60% in regard non-Bitcoin-related projects when compared to 2018 numbers. The total investments for 2019 are expected to hit $1.6 billion — down from the total of $4.1 billion in 2018. Piekarska-Geater provided her opinion on the decrease in investments:
“The decrease in investment is part of the innovation cycle. We are past sticking blockchain into everything (remember the company which saw a massive jump in their market value after adding ‘blockchain’ to its name?) and reaching the stage of cool-headed, balanced evaluation of technology. Developing products and solutions takes much longer and is much more complicated than building POCs, which were basis for getting the funding.”
There is a possibility that the drop in blockchain adoption could simply be the effect of a delayed corporate response to the hype seen in the second quarter of 2017. As Pekarska-Geater mentioned:
“Additionally, last year saw the rise and fall of ICOs and, with those gone, we are back to more traditional methods of investment. However, this also hints at the maturity of the technology. More and more frameworks are reaching the status of being ‘production ready,’ and blockchain networks are more advanced than single node experiments. Many of Hyperledger members have actual live products using our technology.”
Previously, Reuters had reported on a blockchain adoption study, with over half of the respondents (primarily from the fintech industry) overwhelmingly indicating that blockchain adoption proved more challenging than expected. This indicates that many projects will either be delayed or take several months or years at least before completion and implementation.
Related: 10 Things to Track With Blockchain
Samson Mow from Blockstream explained to Cointelegraph that, although people from many different industries are conducting blockchain proof-of-concepts, they should take care to confirm their reasoning behind using blockchain, saying:
“They should first ask themselves how they plan to secure their blockchain, and if by securing it they plan to just preventing anyone from accessing it — then they may as well use a database. To an end user, what is the difference if they cannot run a node and verify?”
Voorhees believes that each use case is different, and blockchains should be used only when they are needed. He told Cointelegraph:
“The big question should always be, ‘Could this be better handled by a centralized database?’ Many things are better handled by centralized databases, not blockchains. But for those things which need to be ‘unstoppable’ or ‘incorruptible’ or ‘non-manipulatable’ or ‘borderless’… to get these attributes, blockchains are probably required.”
Another — less popular — view regarding the drop in investment is that the numbers don’t tell the real truth. As knowledge of the technology is increasing and enterprises are understanding not only application but also development requirements, there is less demand to outsource research and development of enterprise-specific use cases, and that work is now being done in-house. This would indicate that, although investments in blockchain companies has dropped, development has in fact held strong.
Further hiding the impact of the numbers is the fact that many startups in 2018 have now established themselves — and require little to no investment to continue the development and application of the technology. As startups mature, they tend to rely less on external investments, instead developing sustainable funding methods of their own.
Established enterprises are the biggest client of future blockchain platforms, not the end user
It goes without saying that the majority of enterprises across all industries could not only benefit from implementing a blockchain solution, but are aware of the benefits and have started to take action toward this end. The industry is starting to see more established enterprises move from R&D into application development.
The Australian Stock Exchange, or ASX, is developing a new upgrade to its main platform, called Chess, through blockchain-focused development company Digital Assets. This project, although well into development since the 2016 prototype, is still not expected to be fully launched before 2021. The Chess computer system will be available to thousands of organizations and brokers that are registered users on the platform, but the application will be managed and run by the ASX.
IBM, in conjunction with Walmart, has implemented a supply chain app called Food Trust and has onboarded numerous global clients across the industry, including in the U.S., Europe and Australia.
Related: Walmart’s Foray Into Blockchain, How Is the Technology Used?
Visa has launched Visa B2B Connect, a blockchain-inspired network facilitating cross-border payments. The network has incorporated elements from Hyperledger and was developed in collaboration with IBM.
Dozens of decentralized applications, or DApps, are being developed and launched across industries but have seen limited adoption. In order for true adoption to occur, it is becoming more evident that it needs to be driven through enterprises and commercial blockchain adoption. With the addition of enterprise support, end users and (ultimately) global adoption will develop naturally.
The startup Harbor announced a partnership with Seattle-based real estate investment firm iCap Equity to tokenize $100 million in real estate funds.
On Sept. 16, Harbor announced in a blog post that iCap Equity is using Harbor’s blockchain-enabled platform to improve its liquidity in four of its real estate funds which manages over $100 million in assets.
Harbor created the tokens on the Ethereum blockchain, which represent portions of the funds. The partnership between the two companies will allow iCap Equity’s investors and placement agents to buy and sell iCap securities with one another.
Tokenization of the funds will purportedly improve liquidity for real estate investors. Chris Christensen, iCap Equity CEO added:
“iCap provides high-yield investment opportunities for investors, but those investments typically come with a 3 to 5 year lock-up period because they are based in real estate. Now, with Harbor, we are able to provide the same strong returns, but also an option for investors to more easily liquidate if desired.”
Tokenization giving more access to investors
As Cointelegraph recently reported, the Liechtenstein Cryptoassets Exchange is tokenizing a $25 million movie fund together with Hollywood actor Wesley Snipes. The Daywalker Movie Fund will invest in future movies and TV shows produced by Snipes and his production studio Maandi House. The fund will offer investors a share in the profit of its productions, as well as confer extra benefits such as invitations to movie premieres.
Turkish Football Club Galatasaray Spor Kulübü plans to launch Ethereum-based fan tokens in partnership with blockchain sports fan startup Socios based on sports tokenization platform Chiliz.
Socios announces in a press release published on Sept. 16 that as a result of the partnership, The Lions (Aslanlar) — the only Turkish club to have won a major UEFA competition — will release its fan tokens on its platform.
A blockchain sports platform
Furthermore, the team will also be present on the firm’s blockchain-based, influence and rewards mobile app for football fans. These fan tokens will allow fans to vote in club-delegated polls, taking part in deciding on topics that the club will put up for fan vote.
Polls are expected to concern things such as “new official product designs, matchday activities and in-stadium experiences, as well as sponsorship campaigns and collaborations and social media content.” The number of tokens held by a fan determines the value of their votes.
Also, the more fans interact with the team, the more “rewards they can earn, competing for club-specific once-in-a-lifetime experiences and enjoying exclusive rights.”
The company also promises that in the future fans will be able to access exclusive leaderboards, games and merchandise.
The Fan Token Offering
The token will be sold through Socios.com, in Q1 2020 through a process the company calls as a Fan Token Offering. Galatasaray Spor Kulübü board member Dorukhan Acar commented on the development, saying:
“As Galatasaray, we are very pleased to join forces with Socios.com and start an exciting journey. This new partnership opens a world of new opportunities for us with respect to our fan engagement and global reach as well as being another milestone in our digital transformation strategy.”
The company says that other big-name football clubs including Paris Saint-Germain, Juventus, West Ham United, AS Roma and Atlético de Madrid have joined the Socios platform.
As Cointelegraph reported in May, Chiliz — the sports blockchain company behind Socios — has announced a strategic partnership with Binance Chain, the mainnet of major cryptocurrency exchange Binance.