• Fenerbahçe’s Ethereum Token soars 433 percent upon launch, causing a crypto exchange to crash

  • The token surged by 433 percent an hour after Turkish sports team Fenerbahçe launched its Ethereum-based fan token today, despite crashing the only centralized exchange that lists it, Paribu.

    According to the token’s whitepaper, Fenerbahçe Token holders will be able to vote on minor club decisions such as naming facilities and gain priority access to match sales. Because FB is an ERC-20 token, its price is subject to market fluctuations, just like any other cryptocurrency.

    The Istanbul club raised approximately 436 million lira ($51.05 million) in a presale on Monday, with many investors willing to lock up tokens for nine months in exchange for a 50% discount.

    The token went live on Paribu today, but high demand caused the site to crash several times. At the time of writing, three and a half hours after launch, Paribu is still inaccessible. The unlocked tokens that investors purchased on Monday for 30 lira are now worth 160 lira ($18.70), a 433 percent increase. So far, the exchange has transacted $150 million in FB tokens.

    Fenerbahçe competes in a variety of sports, ranging from athletics to table tennis, but its primary focus is soccer. The club has been in existence for 114 years, and recent signings include German-Turkish midfielder Mesut zil and Dutch striker Robin van Persie.

    The supply of FB is limited to 190,700,000, a reference to the year the sports club was founded in 1907. The treasury receives 61% of the total supply, marketing receives 14%, and technology development receives 10%. The remaining 15% will be sold to fans. The club also promises to burn tokens following major victories.

    The club’s crypto contribution joins a growing list of fan tokens, including GAL, the fan token of Fenerbahçe’s rival Galatasaray. GAL has a market cap of $41.4 million and is based on Socios.com, a soccer token platform run by Chiliz in Malta.

    Aydemir’s team discovered that investors in fan tokens tend to buy tokens from multiple teams rather than just one. “Fans are unlikely to invest in their rival teams, but they behave more like traders, according to Akar Aydemir, Paribu’s business development manager who oversaw the token’s launch.

    Foreign fan tokens are also appealing to Turkish traders. “We also see a lot of trading volume in foreign fan tokens, such as Atletico De Madrid, and I don’t think there are that many fans of that Spanish club in Turkey,” Aydemir said.

    Lionel Messi’s transfer to PSG includes a cryptocurrency payment.

    Paris Saint-Germain announced yesterday that it had signed Lionel Messi and that a portion of his salary would be paid in cryptocurrency fan tokens. Since then, the PSG Fan Token has become the most traded cryptocurrency on Paribu. Bitcoin was demoted to seventh place.

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