Resilience in the Face of Adversity
In a remarkable display of growth amidst a struggling crypto market, Chiliz, the blockchain company behind fan token platform Socios.com, has significantly expanded its workforce this year. This trend stands in stark contrast to the broader cryptocurrency landscape, which has witnessed a massive selloff—total market capitalization plummeting by 60% since January. While companies like Coinbase and Gemini have had to cut their staff by 10%–20% to stay afloat, Chiliz has surged forward.
Sustained Growth and Global Presence
As stated by Chiliz and Socios.com CEO Alexandre Dreyfus, the company has increased its headcount by over 70% in 2022. Now boasting more than 300 full-time employees, Chiliz has opened new offices in major cities, including Miami, London, and Sao Paulo, with further expansion efforts underway in Madrid, Malta, Lyon, and Istanbul. Dreyfus noted, “We’ve grown our team and our global presence very significantly,” and highlighted how Chiliz has weathered similar market conditions in the past.
Surge in Fan Token Sales Volumes
The fan token sector, where Chiliz operates, is demonstrating a promising uptick, as indicated by data from CryptoSlam. Monthly sales volumes for fan tokens have skyrocketed by approximately 200% since the start of 2022, reaching about $6.4 billion in September compared to just $2.2 billion in January. This counter-trend against the NFT market, which has seen an 88% decline in sales from $4.8 billion in January to $550 million in September, signifies the unique traction that fan tokens are gaining.
Understanding Scalability and Market Dynamics
Dreyfus attributes this success in the fan token industry to its inherent scalability. Unlike NFTs, which can often be costly to mint, fan tokens are fungible assets that allow millions of users to participate affordably. He emphasized that “Fan tokens are the only digital asset that can affordably deliver the scalability to allow millions of users to access these communities.” As the market evolves, this scalability aspect positions fan tokens as a powerful tool in digitizing fan engagement.
Complementing NFTs, Not Competing
Interestingly, Dreyfus clarified that Chiliz does not aim to outdo NFTs but rather views fan tokens and NFTs as complementary entities within the digital asset space. While NFTs serve as a technology that can support community-building around token holders, fan tokens remain a product that engages fans more broadly. “It’s not about beating NFTs. Fan tokens are a product, and NFTs are a technology,” Dreyfus remarked, reinforcing the idea that both play important roles in the broader digital landscape.
Chiliz’s Commitment and Future Outlook
Despite its ventures into the NFT realm, Chiliz continues to focus on fan tokens as its primary offering, with Dreyfus emphasizing that the company is still realizing less than 1% of its potential. As fan tokens provide unique community benefits to supporters of sports teams, bands, and various groups, Chiliz’s partnerships with major sports organizations such as FC Barcelona and Paris Saint-Germain highlight the platform’s ambitious vision. Furthermore, Chiliz is set to launch its new layer-1 blockchain network, Chiliz Chain 2.0, with the full rollout expected in Q4 2022.
