2019 was supposed to the year of the STO (security token offering) – mass tokenization was expected across a broad array of real world assets including real estate and fine art.
But due to custody and regulatory concerns, the market has been extremely slow to get out of the starting gate. Instead, we are seeing sports organizations and athletes tokenize – including the recent announcement by Manny Pacquiao that he is launching his own cryptocurrency called the “Pac.”
So is this a brilliant innovation in capital raising and fan interaction, or just a last ditch marketing effort by an over-the-hill boxer?
Sports fans are notoriously passionate, and the use of cryptocurrencies and digital tokens can give fans access to exclusive content and items. In the case of the Pac token, it can be used to purchase Manny merchandise - and with enough “Pac” tokens, you can even meet the boxer in person. As far as liquidity and secondary trading, the token will be listed on GCOX, a crypto exchange based in Singapore.
Major League Baseball (MLB) has also made inroads into the digital collectible space by introducing MLB Crypto, making unique trading cards and bobbleheads only available on the Ethereum blockchain. In Europe, high profile soccer clubs Juventus, Paris Saint Germaine, West Ham, and Roma have engaged in their own partnership on blockchain platform Socios, allowing fans who hold the cryptocurrency to vote on outcomes such as changes to a club’s jerseys.
So while Floyd Mayweather has to dance around the authorities as a result of his promotion of the fraudulent $32m Centra ICO, Manny Pacquiao is clearly ready to fight the good cryptocurrency fight.
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