Blockchain firm Chiliz, creators of fan token platform Socios.com, has continued to broaden its workforce regardless of the continued bear market, reflecting a rising pattern within the fan token sector.
The general cryptocurrency market has seen an enormous selloff in 2022, with the entire market capitalization plummeting 60% because the starting of the yr. Some main crypto corporations, together with Coinbase and Gemini, needed to minimize their workforce by 10%–20% to keep up operations and proceed serving their shoppers.
Whereas a large variety of crypto companies have confronted challenges amid the cryptocurrency winter, the fan token trade seems to have proven some resilience.
Chiliz has elevated the corporate’s headcount by over 70% this yr because the agency continued to broaden its world presence in 2022, Chiliz and Socios.com CEO Alexandre Dreyfus instructed Cointelegraph.
Based on Dreyfus, Chiliz’s workforce now counts greater than 300 full-time workers working from the brand new places of work opened this yr within the cities of Miami, Switzerland, London, Milan and Sao Paulo. The agency has additionally been hiring new expertise for places of work in Madrid, Malta, Lyon and Istanbul.
“We’ve grown our crew and our world presence very considerably,” Dreyfus mentioned, including that Chiliz has efficiently survived the earlier main crypto winter. “We’ve been by way of market situations much like this prior to now,” he said, noting that the agency was based in 2018.
Chiliz’s hiring spree displays a rising pattern within the fan token trade in 2022. Based on information from the trade information aggregator CryptoSlam, month-to-month volumes for world fan token gross sales surged about 200% since early 2022, reaching about $6.4 billion in September. In January, these volumes amounted to $2.2 billion.
Whereas fan tokens’ gross sales volumes have been on the rise, the pattern has been fairly the other for nonfungible tokens (NFTs), in accordance with CryptoSlam information. Month-to-month volumes for world NFT gross sales shrank by 88% from $4.8 billion in January to $550 million in September 2022, whereas buying and selling volumes plummeted 98% because the starting of the yr.
Scalability could also be one among attainable causes behind the success of the fan token trade, in accordance with Dreyfus. “Fan tokens are the one digital asset that may affordably ship the scalability to permit hundreds of thousands of customers to entry these communities,” he mentioned.
Not like NFTs, fan tokens are fungible digital belongings, that means that they’re interchangeable and every token holds the identical worth at any given time. Dreyfus said:
“NFTs have been lauded for his or her many use circumstances, with the flexibility to kind communities round token holders. The problem is, minting even a number of thousand NFTs is a really costly pursuit.”
The CEO identified that fan tokens should not supposed to beatin NFTs as these two forms of tokens reasonably complement one another. Dreyfus additionally talked about that Chiliz has a strong technique round NFTs as they play an vital function of their firm imaginative and prescient, stating:
“It is not about beating NFTs. Fan tokens are a product and NFTs are a expertise, one which’s an integral a part of our product providing. They’re one of many methods we reward fan token holders.”
Regardless of making some developments within the NFT trade, Chiliz stays dedicated to fan tokens because the agency’s major focus. “We’re nonetheless at lower than 1% of our potential,” Dreyfus added.
Associated: Crypto.com downsizes some sports activities partnership offers amid market downturn
Fan tokens are a sort of cryptocurrency designed to supply neighborhood advantages to followers of sports activities groups, bands and different teams. The Chiliz platform and the fan engagement platform Socios.com have established fan token partnerships with dozens of sports activities organizations worldwide, together with FC Barcelona, Juventus, Paris Saint-Germain and others.
In March 2022, Chiliz launched the testnet for its new layer-1 blockchain community Chiliz Chain 2.0, also called CC2. The total CC2 launch is anticipated to happen in This fall 2022.