Benfica to join crypto craze with Socios

LISBON : Portugal's biggest soccer club, Benfica, will become the country's first to join the crypto craze, partnering with blockchain-powered fan engagement firm Socios.com to launch a fan token, the club announced on Tuesday.

"We have been paying very close attention to Digital Assets," SL Benfica CEO Domingos Soares de Oliveira said in a statement issued by Socios.com.

"It's a market which has been influential in our industry of late. Benfica is constantly focused on searching for and delivering a positive experience to our fanbase. We are delighted to be partnering with Socios".

Fan tokens are a type of cryptocurrency that allow holders to vote on mostly minor decisions related to their clubs.

They are increasingly seen by clubs as a source of new revenue. Socios.com, which provides such tokens for Manchester City, Barcelona, Paris St Germain and other top clubs, says they generated nearly $200 million for its partner clubs in 2021.

Like bitcoin and other digital currencies, fan tokens can be traded on exchanges. They also share with other cryptocurrencies a tendency for wild price swings.

Some regulators have issued warnings to investors about digital assets.

Still, several high-profile business and entertainment figures have backed crypto assets, with Tesla boss Elon Musk, Twitter founder Jack Dorsey and rapper Jay-Z among those to have shown support for bitcoin.

Soccer star Lionel Messi signed an agreement worth more than $20 million in March to promote Socios.com after the two-year contract he signed with PSG in August 2021 included some of the French club's cryptocurrency fan tokens in a "welcome package".

The Argentinian became only the latest global sports personality to enter the crypto world, following NFL