Fenerbahçe SK, one of Turkey’s three biggest sports clubs, has issued its own fan token on the blockchain Ethereum through a new partnership with local crypto exchange Paribu. The initial pre-sale of 500,000 unlocked tokens was completed on Monday (9), netting the club 15 million Turkish Lira ($1.75 million) in 30 seconds.
The club announced that the Fenerbahçe Token would have a maximum supply of 190,700,000 tokens in reference to 1907, the year the Fenerbahçe was established. According to the project’s whitepaper, a total of 117 million treasure tokens will be created in smart contracts over the next 25 years, annually.
Fenerbahçe also included a script for the burning of tokens that will be triggered by the club’s achievements in football, basketball or volleyball. The whitepaper also noted that there will be symbolic burns in the event of a victory, championship or achievement in Europe.
Noting the dismal state of football amidst the coronavirus pandemic, Fenerbahçe President Ali Koç said the sports industry needed to look for new sources of revenue. He stated that being active in the cryptoactive business is an important item on the club’s agenda.
Koç explained that Fenerbahçe met with 12 companies, both local and international, before issuing a fan token. After evaluating various criteria, such as the potential of a token list, user base and technical infrastructure, the club chose Paribu as the technology partner for the Fenerbahçe Token.
Speaking about the agreement between two parties, Koç said: “It is not a sponsorship agreement. It’s a 25-year business partnership.”
Paribu CEO Yasin Oral said that because the Fenerbahçe Token is issued as an ERC-20 token on the Ethereum blockchain, it would be possible to list it on global platforms in the future.
Fenerbahçe is a rather late addition to the fan token hype in Turkey. Several sports clubs in the country have already issued fan tokens. More recently, the Turkish Club Union, an association of clubs that play in the country’s top football league, Süper Lig, has partnered with Socios.com to explore digital revenue models.
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