What Are Fan Tokens?
The rise in cryptocurrencies and digital assets has permeated many industries across the globe over the past few years. No longer are they utilized only in business, too, as they’ve also entered into the world of sport and sports memorabilia.
From NFTs featuring basketball players in action
in the NBA to the rise of the fan token, which are bringing supporters of various sports teams closer to their favorite clubs. The world of assets built on the blockchain is more popular than ever.
But what are fan tokens?
While people may see the tokens as NFTs, that’s not strictly the case. Owners of Non-Fungible Tokens have ownership rights of their items by digital copyright. They cannot be exchanged or used to access other items or services, whereas fan tokens are interchangeable. While the token owner has his own uniquely identifiable digital token branded in the colors of his favorite club, owners can also use them to access exclusive product lines or services from the club they represent.
Fan token benefits
Aside from the monetary value, and the memorabilia aspect, we’ve already touched upon token ownership as allowing access to other items. But what are they? The added value to some of the offerings includes access to VIP experiences, free match tickets, and voting on club surveys. These votes can range from naming new facilities, kit designs, celebration songs, and more. Schemes such as these also open the doors for a new type of membership, where token owners become a community of the most devoted fans. It’s opening a new level of engagement between the clubs and their most significant group of stakeholders, the fans, than ever before, which is a huge attraction for sports lovers.
Can they be traded?
Yes, investors or fans can purchase and trade them in the same way as other digital assets. However, when selling fan tokens, the seller determines the price of their property, but even that is subject to change based on the popularity of the token and the market value at the time. This can vary, and due to their limited availability, the value of the fan token
is more often influenced by ongoing matters at their associated organization. For instance, when the French soccer club Paris St Germain was about to sign Lionel Messi last summer, Reuters reported a rise in the PSG fan token value by 130%
How would I go about buying them?
Fan tokens like those from Socios are bought through an app with $SCHZ (Chiliz), the application’s native currency. Chiliz are an ERC20
utility token secured on the Ethereum blockchain and can be independently traded. However, as they’re purchased through the app to exchange for fan tokens in this instance, you don’t need to worry about choosing a wallet for your crypto?
Fan tokens are on the rise. They’ve had a groundswell of interest throughout the last year, and many analysts expect further growth in 2022. However, like with any investment, there is no way to know for sure which way the market will go. Still, we hope this article has helped you to understand more about the fan token and assist you in deciding if it’s something you’d like to get involved with.
Exclusively written for yadawallets.com by Jamie Baxter