Fan tokens are more utility-driven than NFTs, says CEO of Socios
by James · November 3, 2022
Alexandre Dreyfus is not a sports fanatic, nor does he play sports. The self-confessed “nerdy tech guy” is still committed to improving the sports fan experience with Web3.
The CEO of sports fan token platform Socios sat down with Decrypt at WebSummit in Lisbon to discuss the progress of their three-month-old strategic technology partnership with FC Barcelona, the nuances and potential of fan tokens, as well as next month’s FIFA Men’s World Cup in Qatar.
Socios x Barca
Socios inked a $100 million deal with European soccer giant FC Barcelona in August, acquire a 24.5% stake in their recently established content creation hub Barça Studios and becomes their strategic technology partner in pursuit of Web3 work.
Legally, Barcelona were required to maintain a 51% stake in Barça Studios – now renamed Barca Digital Entertainment (BDE) – after selling the remaining 49% stake in a split deal to Socios and Catalan media company Orpheus Media.
“This agreement was the consequence of a two and a half year relationship when we signed our first agreement with Barca in February 2020,” Dreyfus revealed. “They were looking for a partner who would not only invest but also lead their Web3 initiative.”
Socios’ strategic technology partnership with Barcelona is expected to encompass the full range of Web3 experiences, from fan tokens and NFTs to metaverse integrations.
“We are working behind the scenes,” Dreyfus stated, adding that “nothing significant will happen until the end of the year. After the World Cup, we will focus on launching new features.”
“It’s going to be about trying to give more to the fan token holders, but also to connect the players, see what assets we can use from an NFT point of view, and metaverse over the next decade.”
Prefer fan tokens
“We didn’t ride the NFT hype train because we stuck to our product,” Dreyfus said. “We believe that fan tokens are a much more scalable and utility-driven product from a Web3 perspective to the sports industry than NFTs as we know them today.”
Fan Tokens > Sports NFTs (Fungible > Non Fungible).
After spending a few days in NYC talking to team owners/industry stakeholders, I’m happy to see that they understand that Fan Tokens provide much more utility, liquidity and scalability as a product than NFTs. $CHZ
— Alexandre Dreyfus (@alex_dreyfus) 27 October 2022
NFTs are blockchain-based tokens used to demonstrate ownership over digital or physical assets.
Shortly after our conversation, Dreyfus was scheduled to arrive talk on stage with Socio’s Global Brand Ambassador and iconic Italian ex-footballer Alessandro Del Piero on the growth of international fandom through blockchain technology.
In a preview of their conversation, Dreyfus said that the role of sports fans has evolved since the days when supporters exclusively watched their teams in the stadiums. Today’s experience involves a multifaceted digital landscape of social content and supplemental entertainment where the status of being a fan has become more dynamic and abstract, he explained.
“The reason fan tokens exist is not just for domestic/local fans, it’s really to try to go after the non-local fans, the 99% of fans who aren’t in a stadium,” Dreyfus said. “But in 2022, what is the definition of a fan?”
He ventured a definition: “There are a number of different tribes that use the same brand as you and me, but only in a different way. And so you need different products for the different fans.”
Watching the World Cup
As for the World Cup in Qatar, Dreyfus expressed his enthusiasm for the convergence of fans from around the world for the quadrennial sporting celebration. “I’m excited about it. I’m sure it’s going to drive a lot of traction…and trigger exposure [for the Socios brand],” he said.
FIFA’s decision to grant Qatar host nation status for this year’s tournament has sparked a significant backlash over many issues, primarily Qatar’s appalling human rights record and its limited freedoms for women and LGBTQ+ people – as well as the weather-induced pause imposed on all European national competitions.
Dreyfus respectfully declined to share his thoughts on the debate, saying, “I have no thoughts. I’m a crypto guy, so I don’t know anything else.”
He shared that he hopes “it will be Portugal against Argentina in the final, as they are two teams we are working with”. Maybe it will be Messi vs. Ronaldo for the ultimate GOAT showdown.
“Of course I wouldn’t mind having France somewhere along the way as well,” he said. Not England?
He’s laughing. “Absolutely not!”
