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Socios fan tokens surge 40%+ after Chiliz rolled out mainnet upgrade and token burn plan

In times of stress and market turbulence, sports entertainment serves as a valuable escape for people around the world, giving them the opportunity to cheer on their favorite players and teams while briefly forgetting the worries of the world.

Amid continued market volatility and falling crypto prices, sports fans have reason to cheer as several fan tokens followed the downtrend on March 18.

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Top 7 coins with the highest 24-hour price change. Source: Cointelegraph Markets Pro

Here’s a look at the recent developments that helped propel Paris Saint-Germain (PSG), Juventus (JUV), FC Barcelona (BAR) and other fan tokens to the top of the charts on May 18th.

Chiliz testnet phase 2

The biggest catalyst for fan tokens appears to be the new developments in the Chiliz protocol, which powers Socios, a blockchain-based sports entertainment platform.

On May 17, Chiliz announced the launch of Jalapeno, the second phase of its Scoville testnet, which is part of the broader Chiliz mainnet launch.

Some of the new features to be tested in Phase 2 include the launch of PepperSwap, which will offer a decentralized exchange and fan token testing polls, allowing token holders to start participating in polls and governance votes on the log to begin.

Ultimately, users will be able to interact with the community of specific fan tokens and vote on the developments they would like to see for that club through fan token polls, which is one of the features many investors are initially interested in was.

Fan token list on a new exchange

A new listing on BitPanda could be another reason why fan tokens will be released on May 18.

At least seven fan tokens were listed as of May 18, according to BitPanda’s Twitter.

Related: Exploitation of sports fans by NFTs does not result in a W

Token burns reduce supply

Another factor driving up fan token prices is the Chiliz Head2Head burn competition, which burns a portion of the circulating fan token supply based on the results of live matches between clubs.

Based on this design, the Head2Head burn mechanism will affect a project’s tokenomics over time by helping to reduce the circulating supply of tokens, which has the potential to lead to a price spike if demand remains high.

It also provides a way to reflect a team’s performance in their token pool, with higher-performing teams seeing more of their token pool being burned. If the Head2Head burn process proves effective, it could potentially add value to certain teams due to the reduced circulation supply.

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