Messi’s move to PSG includes getting partly paid in the club’s cryptocurrency — the value of which has tripled since last week

• Football star Lionel Messi shall be partly paid via the club’s fan token, $PSG. The Ethereum-based token is in high demand, with its value surging by 100%.
• The cryptocurrency provides more channels of engagement for fans and helps bridge the distance in a pandemic-hit world.
• The club did not state what percentage of the deal comprised the tokens but said he had received a "large number."
• Messi's adoption of the cryptocurrency could have a lasting positive impact on the token, indirectly propelling the world of non-fungible tokens (NFTs).

Six-time Ballon d’Or winner Lionel Messi's transfer from the Spanish football club Barcelona to France’s Paris Saint Germain (PSG) has everyone in a tizzy — including the club’s cryptocurrency $PSG, which has hit an all-time high of $61.53. That’s almost triple last week’s value of around $22.

After his emotional departure from Barcelona, Messi arrived in Paris shortly thereafter to finalise the move. He now has a two-year deal with PSG, with the option to extend his contract for a third.

The legendary player is reported to have an annual salary of $41 million, plus bonuses and a $30 million signing-on fee. However, with PSG, a part of his salary will be paid out in the club’s own fan tokens, according to Reuters.

What are PSG fan tokens?

$PSG fan tokens, which were floated on the crypto platform Socios.com, are based on the Ethereum blockchain. They enable smart contact-based voting, offering fan engagement and rewards through polls. Simply put, it gives the fans some control over the club's decisions.

The club did not state what percentage of Messi’s deal comprises of fan tokens but Messi told the press that it is a ‘large number’.

Thanks to blockchain technology, clubs — Juventus, AC Milan, Manchester United, and more — have found a convenient way to monetise their brand and fan following, ultimately creating an entire economy around it. The cryptocurrency provides more channels of engagement for fans and helps bridge the distance in a pandemic-hit world.

A virtual economy that’s entirely based on the club

$PSG surged more than 100% between August 4 and August 10, from $22.49 per token to a peak of $49.9. Messi’s exit from FC Barcelona was announced on August 7, followed by news of PSG transfer on August 10.

Coincidentally, rival football club FC Barcelona's token, $BAR, is also floated on Socios and saw minimal growth in its value as fans weren’t too excited about the legend’s exit.

These tokens can provide holders certain voting rights and participation in essential club decisions, access to rewards, merchandise, and experiences related to the club. $PSG’s market cap stands at more than $110 million today.

$PSG has a total token supply of 20,000,000, of which about 1,288,396 have been distributed to fans via Token Offering. The remaining tokens are held by PSG, which can be earned by participating in the community.

Messi's adoption of the cryptocurrency could have a lasting positive impact on the token, indirectly propelling the world of non-fungible tokens (NFTs).

Other athletes are also lending cryptocurrencies an air of legitimacy

A host of athletes have signed up this year to get compensated in cryptocurrency. And, the trend is seen globally across sports such as Formula One, NFL, Nascar, and more. A few popular athletes who’ve already joined the party are Russell Okung, Landon Cassill, Caroline Wozniacki, and more.

Ethereum is the most widely-used blockchain for NFTs due to its unique ownership ledger and smart contracting system. The rewards and collectables released by the club shall be floated as NFTs, making them easily tradeable. The fan tokens' price moves can have little connection to on-field performance or results.

Messi became the most desired free agent in football history after La Liga rejected his attempt to stay at Barcelona last week. It cited his salary would not comply with financial regulations. The club is confident that it'll be able to generate more revenue than ever and change its fortunes with a star-studded team.

For a more in-depth discussion, come on over to Business Insider Cryptosphere — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve.

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