Fan token holder Socios.com reduced just over 80% of annual transfers signed with Flamengo that include the club’s Fan Token, $MENGO. The transfer amount decreased from $6.5 million per year to $1.2 million. According to the company, the adjustment was necessary because the platform’s token, CHZ, has decreased significantly since the signing of the agreement with the Rio de Janeiro club.
In fact, when Socios.com and Flamengo announced a partnership, in September 2021, the CHZ token price was around R$1.50. Today, the cost of the crypto asset is R$0.63, according to data from CoinGecko. Therefore, in this period, there was a depreciation of the currency by about 60%.
Socios.com and Flamengo have modified the $MENGO fan token contract
Because of this sudden price drop, Socios.com informed Flamengo that it would not be able to deliver on the promised initial value. Therefore, the parties needed to make amendments to the contract, which was approved by the Consultative Council of Flamengo by a large majority on Wednesday (11), as reported by the Mundo Rubro Negro portal.
Rio de Janeiro FC has agreed to reduce the annual transfer to US$1.2 million. That’s about R$6.18 million a year in today’s prices. However, Flamengo demanded that he could, from now on, enter into agreements with Socios.com’s competitors.
Flamingo fan icon
As mentioned, Socios.com has signed an agreement with Flamengo to launch its fan token in September 2021. mentioned In CriptoFácil, the club reported that the contract is valid until December 2025. However, the value of the agreement was not disclosed – which could vary depending on the performance of the $MENGO Fan Token.
The agreement also states that the Socios.com brand will be featured on the men’s professional soccer team’s training jersey and on the women’s and youth team’s game jerseys.
When Fan Token hit the market, in fact, in October 2021, sales were successful. Flamengo sold 1.5 million tokens in less than 12 minutes, breaking the world record for the sale of this crypto asset at the time. According to Socios.com, the demand was so high that the app created instability.
Today, the MENGO token costs R$3.31, which is 77% less than the value at the time of launch, which was R$14.66.
In addition to Flamengo, Socios.com has partnerships with Vasco da Gama, Atlético-MG, Corinthians, São Paulo and Internacional, among other Brazilian clubs. In Europe, the highlights are Barcelona, Paris Saint-Germain, Juventus, Milan, Manchester City and Atletico Madrid.