Fan token firm Chiliz has continued to broaden its workforce regardless of the continuing bear market, reflecting a rising pattern within the fan token sector.

The general cryptocurrency market has seen a large selloff in 2022, with the whole market capitalization plummeting 60% because the starting of the 12 months. Some main crypto corporations, together with Coinbase and Gemini, needed to lower their workforce by 10%–20% to take care of operations and proceed serving their shoppers.

Whereas a large variety of crypto companies have confronted challenges amid the cryptocurrency winter, the fan token business seems to have proven some resilience.

Chiliz has elevated the corporate’s headcount by over 70% this 12 months because the agency continued to broaden its international presence in 2022, Chiliz and Socios CEO Alexandre Dreyfus instructed Cointelegraph.

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

“We’ve grown our group and our international presence very considerably,” Dreyfus stated, including that Chiliz has efficiently survived the earlier main crypto winter. “Now we have been by means of market situations just like this previously,” he acknowledged, noting that the agency was based in 2018.

Chiliz’s hiring spree displays a rising pattern within the fan token business in 2022. In keeping with information from the business information aggregator CryptoSlam, month-to-month volumes for international 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 pattern has been fairly the alternative for nonfungible tokens (NFTs), based on CryptoSlam information. Month-to-month volumes for international NFT gross sales shrunk by 88% from $4.8 billion in January to $550 million in September 2022, whereas buying and selling volumes plummeted 98% because the starting of the 12 months.

Scalability could also be considered one of attainable causes behind the success of the enjoyable token business, based on Dreyfus. “Fan tokens are the one digital asset that may affordably ship the scalability to permit hundreds of thousands of customers to entry these communities,” he stated.

Not like NFTs, fan tokens are fungible digital property, that 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 power to kind communities round token holders. The difficulty is, minting even a number of thousand NFTs is a really costly pursuit.”

The CEO identified that fan tokens are usually not supposed at beating NFTs as these two forms of tokens slightly complement one another. Dreyfus additionally talked about that Chiliz has a strong technique round NFTs as they play an necessary function of their firm imaginative and prescient, stating:

“It isn’t about beating NFTs. Fan tokens are a product and NFTs are a expertise, one which’s an integral a part of our product providing. They’re one of many methods we reward fan token holders.”

Regardless of making some developments within the NFT business, Chiliz stays dedicated to fan tokens because the agency’s major focus. “We’re nonetheless at lower than 1% of our potential,” Dreyfus added.

Crypto.com downsizes some sports activities partnership offers amid market downturn

Fan tokens are a kind 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 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 total CC2 launch is predicted to happen in This autumn 2022.