Nftnews Today Fan token firm Chiliz grows staff by 70% despite crypto winter

Blockchain firm Chiliz, creator of fan token platform Socios.com, has continued to develop its workforce regardless of the continuing bear market, reflecting a rising development within the fan token sector.

The general cryptocurrency market has seen an enormous selloff in 2022, with the full market capitalization plummeting 60% for the reason that starting of the 12 months. Some main crypto corporations, together with Coinbase and Gemini, needed to reduce 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 12 months because the agency continued to develop its world presence in 2022, Chiliz and Socios.com CEO Alexandre Dreyfus instructed Cointelegraph.

In line with Dreyfus, Chiliz’s workforce now counts greater than 300 full-time workers working from the brand new workplaces opened this 12 months within the cities of Miami, Switzerland, London, Milan and Sao Paulo. The agency has additionally been hiring new expertise for workplaces in Madrid, Malta, Lyon and Istanbul.

“We’ve grown our group and our world presence very considerably,” Dreyfus stated, including that Chiliz has efficiently survived the earlier main crypto winter. “We’ve got been by means of market circumstances just like this up to now,” he acknowledged, noting that the agency was based in 2018.

Chiliz’s hiring spree displays a rising development within the fan token trade in 2022. In line with 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 development 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% for the reason that starting of the 12 months.

Scalability could also be one of many potential 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 thousands and thousands of customers to entry these communities,” he stated.

In contrast to NFTs, fan tokens are fungible digital property, which means that they’re interchangeable and every token holds the identical worth at any given time. Dreyfus acknowledged:

“NFTs have been lauded for his or her many use circumstances, with the flexibility to kind communities round tokenholders. The difficulty is, minting even just a few thousand NFTs is a really costly pursuit.”

The CEO identified that fan tokens should not meant to beat NFTs, as these two sorts of tokens somewhat complement one another. Dreyfus additionally talked about that Chiliz has a strong technique round NFTs as they play an vital position of their firm imaginative and prescient, stating:

“It’s not about beating NFTs. Fan tokens are a product and NFTs are a know-how, one which’s an integral a part of our product providing. They’re one of many methods we reward fan tokenholders.”

Regardless of making some developments within the NFT trade, Chiliz stays dedicated to fan tokens because the agency’s main 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 group 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, often known as CC2. The complete CC2 launch is predicted to happen in This fall 2022.