Socios.com is a fan engagement platform. Supporters purchase fan tokens which can be used in the app to access VIP rewards, exclusive promotions, chat forums, games and competitions. In addition, token owners can participate in the league’s decisions by voting on polls exclusive to Socios.com app.
The value of the tokens is volatile, and in contrast to a nonfungible token (NFT), its value is not tied to an object or a digital collectible. As such, some might perceive fan tokens as investments, especially if the fan benefits seem small compared to the token value. Chiliz, the company behind Socios.com runs an exchange for these fan tokens.
The partnership’s announcement was over five months ago, but the official fan token launch just took place.
The PFL season begins on April 23 and the first poll will take place on April 9 to give token owners the right to decide which fight will headline the main card during the season’s premiere.
For Socios.com, the partnership with PFL gives the platform the right to use PFL logos in its marketing, and Socios.com logos will be featured around the fight’s cage and arena. This will likely be a significant boost for Socios.com brand awareness as PFL claims 550 million fans worldwide.
The PFL is the first U.S.-based sports entity to partner with Socios.com for fan tokens. Twenty-four other organizations are already on the network, including leading soccer teams Barcelona, AC Milan, Atletico Madrid, and Manchester City. Nevertheless, it is a significant milestone for Socios.com as it expands towards the American market and beyond soccer.
The company recently announced a $50 million expansion strategy aimed at targeting partnerships with the five major U.S. sports leagues. However, it takes two to tango, so the sports leagues have to be keen to engage. Given the difference between an NFT as a collectible and a fan token, the big question is whether the U.S. SEC might view fan tokens as securities.