Recent data have shown that sports clubs’ tokens, from Paris Saint-Germain to Manchester City, have failed investors that had a long term outlook and held the assets for a long period.
HODL, as an acronym for “hold on for dear life,” has become a mantra among crypto enthusiasts denoting a long-term approach to cryptocurrency. This approach would be used by fans expecting a huge payout in the long term.
However, soccer club tokens have disappointed many eager fans, with prices fast losing pace within days. Fan tokens have been trading on major crypto exchanges for three years, promising a new way for clubs to raise funds and for fans to become closer to their favourite teams.
What you should know
A cursory look at the performances of Paris Saint-Germain and Manchester City fan tokens shows that investors that held tokens for a year would experience a loss of at least 30%.
At the time of writing this article, the Manchester City fan token was trading at $15.00, down 37.08% from investors that brought the token a year ago.
Paris Saint-Germain had a similar drop after a jump, due to soccer star Lionel Messi’s transfer to the club. At the time of writing, the Paris Saint-Germain fan token was trading at $15.06, down 31.13% for investors that brought the token a year ago.
Clubs that have issued tokens include the likes of Manchester City, SS Lazio, FC Porto, Santos FC, FC Barcelona, AC Milan and Trabzonspor. Some, like FC Arsenal, have raised as much as $5.5 million in first-day sales of fan tokens, dubbed “initial fan token offerings,” though most have raised closer to $2 million in these sales. That’s a fraction of these clubs’ expenses.
Clubs can potentially generate additional revenue from future token sales and from the fees they charge for volumes traded on Binance.
Some investors made a profit from fan tokens
According to Bloomberg, Miguel Schweizer, the chief executive officer of Decrypto, bought the French club’s fan token, $PSG, on the notion that prices would rise due to reports of Messi’s admission into the club. They did, but he didn’t keep the tokens for very long.
He sold them a few days later, betting on a short-term rally. His prediction was correct; within a week, prices were down 34%, and after four months, they were down 73% from when the tokens were created.
“I would never keep them in my investment portfolio for the long term,” said Schweizer, 29, chief executive officer of Decrypto, a Buenos-Aires based exchange and wallet. “They’re trade opportunities.”
Why fan tokens have failed investors
According to Oliver Bell, CEO and co-founder of XCAD Network, a company that makes tokens for content creators, “The problem with current fan tokens is the clubs do not actively promote them or the utility the tokens have”
He added that “The people that are buying them are not necessarily fans of the clubs at all; the only buyers are crypto enthusiasts.”
Analysts also warn that fan token demand might swiftly shift from excitement to apathy. The biggest critique they level is that the fans receive few real rewards hence may not be worth it.
The Juventus token, for example, enabled supporters to utilize loyalty points earned as token holders to purchase VIP tickets, while the PSG token allowed holders to vote on the design of the new team bus and club motto.
In the meantime, the market is still struggling with its small size. According to CoinMarketCap and Coingecko data, the top ten fan tokens have an average daily volume of $13 million, which is only 28% of the daily volume traded on average for the 364 coins listed on Binance. The sports fan tokens have a market value of $491 million and a daily traded volume of $241 million
The world’s largest fan token by market capitalization, Manchester City, has a market value of $56 million and the daily traded volume is under $15 million, according to data from CoinMarketCap.com.
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Original Article: nairametrics.com
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Seplat Energy Plc Appoints Odunewu, 2 Others As Non-Executibe Directors
Seplat Energy Plc has announced the appointment of Mrs. Bashirat Odunewu as an Independent Non-Executive Director of the company, Mr. Kazeem Raimi & Mr. Ernest Ebi as Non- Executive Directors, respectively.
This was disclosed through a notice by the company which was filed with the Exchange and signed by the Director Legal/Company’s secretary, Mrs. Edith Onwuchekwa.
The appointment of the Non-Executive Directors, according to the disclosure, will be effective from 18th May, 2022.
About the appointees
Mrs. Bashirat Odunewu – Independent Non- Executive Director
Mrs. Bashirat Odunewu is a Banking and financial expert with about 30 years’ experience in the Finance and Banking Industry. Up till June 2021, she served as C-Suite executive, corporate banking (Energy, Natural Resources & Infrastructure), at First Bank Nigeria Ltd, prior to which she was the line executive for their international banking group where she supervised CEOs of the subsidiaries of First Bank in 6 African countries as well as the Bank’s Representative office in China and served as a board member for several of them.
She currently serves as an INED on the board of Leadway Holdings and Non-Executive Director (NED) on the Boards of some African Subsidiary Banks of First Bank Nigeria. She is an Independent NED on the Board of Neimeth International Pharmaceuticals Plc (an NGX quoted company) and is also a member of the Board of Directors for the Franco-Nigeria Chamber of Commerce and Industry where she serves as the Treasurer.
Mrs. Odunewu has experience spanning audit/accounting, corporate & commercial banking, Investment banking and treasury in various financial institutions. She has specialized in Oil and Gas financing projects and led notable successful syndications for acquisitions and development. She has been the recipient of several Merit Awards in the organizations she has worked in recognition of her stellar performance
Mr. Kazeem Raimi – Non-Executive Director
Mr. Kazeem Raimi is a nominee of Platform Petroleum Limited replacing Mr. Austin Avuru who stepped down from the Board of Seplat Energy on 1st March 2022. Mr. Raimi is presently the Executive Director, Commercial for Platform Petroleum Limited. Previously with Seplat Energy as General Manager, Commercial, Mr. Raimi was charged with the responsibility for driving commercial, economics, valuation, planning and treasury activities across the entire organisation. He also served previously as Manager, Corporate Planning and Economics at Seplat Energy.
Mr. Raimi has extensive experience in project economics and risk analysis having been Lead Petroleum Economics and Commercial Advisor at Addax Petroleum Nigeria where he also served in different capacities. Prior to this, Mr. Raimi served as Treasury Manager at Cadbury Nigeria Plc and Finance Analyst at Citibank Nigeria Limited. He had significant involvement in commercial and economic evaluations of new ventures, farm-in and company acquisition opportunities with a thorough appreciation of tax, fiscal issues and project economics especially as they relate to Nigeria, Gabon, Iraq and Cameroon.
In addition to his role at Platform Petroleum Limited, Mr. Raimi also serves as a Non – Executive Director at PNG Gas Limited and Ase River Transport Company Limited.
Mr. Ernest Ebi – Non-Executive Director
Mr. Ernest Ebi is a nominee of Shebah Petroleum Development Company Limited (BVI) replacing Dr. A.B.C Orjiako who will step down from the Board of Seplat Energy on 18th May 2022 after the Annual General Meeting. Mr. Ebi is an executive whose vast experience in the banking and finance industry spans over four (4) decades. From June 1999 to June 2009, he was appointed as a Deputy Governor at the Central Bank of Nigeria, Nigeria’s apex bank, where he covered policy and corporate services portfolios. Prior to this, Mr. Ebi held several executive positions in the banking industry in Nigeria and the United States of America. He was the Deputy Managing Director in Diamond Bank Ltd where he led the bank’s financial services marketing strategy & initiatives for new business development amongst others.
Mr. Ebi served as the Board Chairman of Fidelity Bank Plc (2016 – 2020) and AIICO Pension Managers (2010-2021) and currently serves as an Independent Director on the Board of Dangote Cement Plc., Julius Berger Nigeria Plc., Coronation Capital Ltd, and Coronation Asset Management Ltd.
Mr. Ebi is also a Fellow, Chartered Institute of Bankers, FCIB and Fellow, Institute of Directors Nigeria (F.IOD). Mr. Ebi has a very distinguished career within the Banking and financial services industry and has undertaken several leadership courses in Harvard Business School and Oxford Said Business School.
The post Seplat Energy Plc appoints Odunewu, 2 others as Non-Executibe Directors appeared first on Nairametrics.
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