Alexandre Dreyfus, the founder of Socios, sees the recent cryptocurrency crash as a “necessary evil”

Interviewed by BFM Crypto, Alexandre Dreyfus discussed the strategy of his token platform, which has 1.5 million users.

Created in 2018 by the French Alexandre Dreyfus, the platform for Member tokens allows fans to make decisions about club life thanks to the “fan token” principle. This principle, invented by Socios, is a mix between a cryptocurrency and an NFT (non-fungible token). Fan tokens can only be purchased with the chiliz cryptocurrency, which was also created in 2018.

Fan Tokens “are fully fungible digital assets that give you voting rights and other fan-centric utilities for the various teams each fan token is associated with,” clarifies the company’s website. “Fan Tokens never expire and, because they are fungible, they can be freely exchanged with chiliz on the Socios.com platform and off-platform at any other fan token exchange provider authorized to operate on the Blockchain by Chiliz,” the site specifies.

“The current situation is a necessary evil”

The chiliz cryptocurrency ranks 68th in the Coinmarketcap ranking, which ranks cryptocurrencies based on their capitalization. It currently has a capitalization of 683 million dollars. According to data from Etherscan, which allows you to see transactions on different blockchains, around 142,000 users have chiliz. Alexandre Dreyfus claims up to 500,000 or even 1 million holders of this cryptocurrency.

Like many cryptocurrencies, the price of chiliz was turned upside down by the storm experienced by the ecosystem last week. Notably, it hit a one-month low of $ 0.08 on May 12, before climbing to around $ 0.11 on Thursday. But we are still a long way from the last peak reached on March 30 when a chilliz traded against $ 0.29 (i.e. -62% since) or its all-time high of $ 0.64 in April 2021 (-83% since. that date).

In fact, last week, the cryptocurrency and stablecoin market underwent severe turbulence that had short-term implications but which also raise longer-term questions, particularly on the resilience of the sector.

“The current situation is a necessary evil, at one point there was a lot of money. I who lived through the 2000s as an entrepreneur: everything went very quickly. Today we go back to our origins a little healthier. We must have time to build useful projects for users, “says Alexandre Dreyfus.

To date, Socios is a partner of over 60 football clubs, including PSG, Juventus and Manchester City. Specifically, a PSG fan can buy a “PSG fan token” at the current price of 8 euros, giving him the right to make decisions about the life of the club. Specifically, to make decisions, supporters can vote on the Chiliz blockchain, a fan token which is therefore equivalent to a vote.

For example, while PSG’s 10th Scudetto celebration will take place on May 21, fans who acquired fan tokens were able to give insights into the design of the stadium entrance or the use of music. PSG would have between 30,000 and 50,000 fan token holders, Alexandre Dreyfus told us. “Over 90% of token holders are not in France: it is the interest of the blockchain that involves fans who are not necessarily at the stadium”, underlines Alexandre Dreyfus.

The Socios.com application, launched in November 2019, would therefore have more than 1.5 million users, its boss claims that the figure has multiplied by 10 in one year. These are users with an account on Socios, who can hold fan tokens, but Socios fan tokens are also distributed by other trading platforms such as the giant Binance.

Socios is also facing new competitors: if Binance offers Socios fan tokens, the platform also launched its first fan tokens last year with Lazio Roma and has since had new partners like FC Porto or Santos FC. Likewise, the Turkish cryptocurrency exchange Bitci.com currently offers dozens of fan tokens.

Partnership with Messi

To date, the Malta-based platform, which employs 200 people, has an Estonian license and an authorization to exercise the Swiss regulatory authority, which allows it to advertise on television in several countries. Separately, Socios announced Tuesday that it has hired Lionel Messi as an ambassador to represent the brand. But the group would like to go faster.

“We already have nearly 40 employees in France, developers, and we continue to invest in France. We would consider registering as a digital asset service provider (PSAN) at some point if we were to develop further in France in terms of marketing.” confides to BFM Crypto Alexandre Dreyfus.

Registering as a PSAN in France would give it greater credibility as a platform in France, but it would also allow it to advertise (but without propaganda) to French customers.

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