With the onset of the world cup, there is an overwhelming interest in fan tokens and their opportunities. Many of the soccer–based tokens run on Socios, which has partnerships with some of the largest soccer clubs in the world. Such clubs include Barcelona F.C., Paris Saint-Germain F.C. and Manchester City F.C.
Popularity for fan-based tokens in the sporting industry has surged lately, too, with token sales volumes often increasing more than 250% month-on-month since Jan. 2022.
An Overview of Fan Tokens
Fan tokens are fungible utility tokens issued by a sports club, team or brand. It gives token holders (fans) special privileges like voting rights to fan-related decisions, rewards, VIP access, exclusive deals, and lots more.
Similarly, it allows sports teams to monetize their fan base by selling tokens. Fan tokens are an easy way to onboard sports-related brands seeking growth to Web3.
Fan tokens are not entirely like the usual cryptocurrencies. The value of a cryptocurrency is derived from the underlying project and basic demand and supply. In contrast, the value of a fan token is determined by the unique benefits it brings to fans.
In other words, the higher the token's utility, the higher its value.
Fan tokens are fungible.
Current Market Size:
Trading Volume: $125M No of Fan Token: 82 - as per FanMarketCap
Market change in 24 hrs: - 5.5%
Most of your popular sports teams are already using fan tokens. For instance, teams like:
Barcelona.
AC Milan.
PSG.
Juventus, Arsenal, S.S Lazio
Portugal.
Brazil.
Manchester City.
Napoli.
Some of the use cases include;
The Juventus ($JUV) token holders influenced their goal celebration song, official bus design, fan pennant, Juv vs Porto playlist, etc.
The Barcelona ($BAR) token holders influenced their matchday music, captain's armband message, & design in the dressing room.
Where to Buy Fan Tokens
One can purchase the tokens from Socios. The Chiliz Network powers the Socios platform. They own the largest market share in the fan tokens economy. Users can purchase and trade fan tokens on the Socios platform using the $CHZ token.
Additionally, through the Binance Fan Tokens launched in 2021, users can discover teams and trade fans' tokens using the Binance Fan token platform. You can buy fans tokens on Binance on the spot market using cryptocurrencies, debit, or credit cards.
On the other hand, Bitci is another leading fan tokens platform where users can buy and trade fan tokens on Bitci.
Final Thoughts
Fans tokens are not a new concept; they have existed for a while. Although the narrative recently came alive with the ongoing World Cup. Fan tokens are volatile and have high risk. That said, some might be 100X, and others might not.
An example of volatility is Argentina's shock 2-1 loss to Saudi Arabia in the opening match of the FIFA World Cup. The loss plummeted the price of the Argentine Football Association Fan Token (ARG).
Therefore, proceed with caution. If you're a sports or football fan, you can use it to support your favorite teams in exchange for top-tier benefits. The fan tokens market is currently not-so-good, but there's some possibility that it might be favorable soon.
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