In the build-up to the FIFA World Cup Qatar 2022, we’re shining a spotlight on fan tokens. We’re covering it all from what they are, how they work, and why you might want one. In essence, fan tokens offer a two-way street for fan-team relationships, fans get perks and feel more involved while the teams make money for doing very little. Win-win.
What Are Fan Tokens?
Fan tokens are digital assets on a blockchain. Designed to change the dynamics of team and fan relationships, fan tokens offer an opportunity for fans to be more “involved” in the team through membership benefits. These types of cryptocurrencies offer the fans anything from exclusive access to content, experiences, prizes, or, sometimes, a vote on club decisions.
Of course, fan tokens aren’t exclusive to the sporting sector, they span across the entire entertainment industry including bands and pop stars. Fan tokens have proven to be quite lucrative for some.
What Can I Do With Fan Tokens?
Fan tokens are typically minted by teams as fungible tokens (similar to other cryptocurrencies) before being distributed. Fans can then buy these tokens either on a peer to peer marketplace, a secondary market like Socios, or directly from the issuer.
These tokens will then need to be stored in a compliant wallet, and users will gain access to the perks provided. These perks will depend on the token and the team behind it.
Fan tokens are not subscription-based, and require only one to be part of the experience. However, the more you have the more you can benefit.
The Fan Token Market
According to CoinGecko, at the time of writing the fan token market was worth roughly $374 million. The market round up has 65 tokens listed with a wonderful amount of green (a color greatly missed from the rest of the crypto market listings of late).
The most traded fan token at the time of writing was the Lazio fan token (LAZIO) with a 24 hour trading volume of $48,015,329. The remaining top five most traded fan tokens in the last 24 hours were the Santos FC, Brazil National Football Team, Argentine Football Association and the Paris Saint Germain Fan Tokens.
The total 24 hour trading volume exceeds $173,500,000 indicating an active trading environment.
Why Have Fan Tokens Become So Popular?
The hype surrounding fan tokens took off after Italy granted them regulatory permissions in Q3 2022. With fans gaining special access to their beloved teams, the purchasing and trading of fan tokens, particularly in the sporting sector, took off substantially. Additional factors are outlined below:
- The opportunity to meet and greet the team. The main driver of the popularity of fan tokens is the perks they offer the fans. In some cases, fan tokens grant the holders access to a one-of-a-kind opportunity to meet the team.
- Investment opportunity. While some people invest in property, others invest in their teams. Whether it be through sporting memorabilia or fan tokens, purchasing assets unique to teams has often proven to be a lucrative endeavor.
- Alternative to online betting. Fan tokens are offering traders an opportunity to potentially profit off the winning teams, in a similar manner to online sports betting practices. Investors are accumulating fan tokens associated with potential winning teams in the hopes that following the World Cup these tokens will appreciate in value.
How Can I Buy Fan Tokens?
Whether you’re looking to invest for profits or for the sheer love of your team, buying fan tokens is incredibly simple. A great place to start is Socios.com, a marketplace bridging the gap between passive and active sports fans. By using the platform’s native token, Chiliz (CHZ), users can buy and trade fan tokens unique to their favorite sports teams.
CHZ also grants holders governance rights, access to vote on polls within the platform’s app and exclusive rewards and experiences. In 2021, the platform conducted over 300 surveys in partnership with partner clubs and gave fans the opportunity to vote on things like kit design, celebration songs and the naming of new facilities.
Socios currently supports fan tokens from over 50 major esports and sports brands around the world, including AC Milan, Manchester City, FC Barcelona and more.
In order to participate on the marketplace you will need to purchase CHZ tokens, which you can do directly through your Oobit app, and then trade them for the fan tokens of your choice on the Socios platform.
Fan tokens are digital assets created for a specific sports team, band or entertainer. These tokens are fungible meaning they can easily be traded, and are stored in digital wallets much like any other cryptocurrency. Fan tokens have recently surged in popularity, with a special drive from the upcoming FIFA World Cup Qatar 2022.
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