All you need to know about ‘Fan Tokens’.
Not just cryptocurrencies, Fan tokens are also creating a buzz in the market. The world has been witnessing a pandemic but that has not kept the fans away from their favorite games. Fan tokens are currently the new players, giving teams additional ways to generate income while bringing the fan community together at the same time. It is an innovative way to digitally connect fans and engage them with their favorite player.
Fan tokens are typically cryptocurrencies allowing users to get access to a wide range of fan-related membership perks like voting on club decisions, receiving rewards, merchandise, design accessories, and gaining other unique experiences. Usually popular among sports clubs and music fan clubs to organize unique experiences for their fans, establish club leadership, and more.
Just like other cryptocurrencies, these tokens can also be easily treated on exchanges, and their values can change overnight.
Socios, Crypto platform that creates tokens giving fans access to absolute club content.
Stadiums have been witnessing empty seats due to the current pandemic but these Fan tokens have brought out a way to connect the fans with the clubs. It has helped them feel directly connected with the teams
These tokens are of two types — fungible and non-fungible tokens. Fungible tokens are popular among European soccer teams and diligently traded “fan currencies” or “fancoins,” making $200 million during the covid period.
Socios, Fan engagement platform which is Malta-based blockchain sports firm Chiliz is the top leader for fungible fan token/fan currency business. They have recently expanded to New York and have collaborated with the National Football League (NFL), National Basketball Association (NBA), National Hockey League (NHL), Ultimate Fighting Championship (UFC), and more.
Chili and Socios’ vision is to reach “hundreds, potentially thousands, of major sporting organizations and some of the biggest entertainment franchises from film and music fully embracing” fungible fan tokens as “a core part of their digital engagement strategy.”
Fan tokens are not limited to Sports they influence Other industries as well including music and recently launched Kpop Fan Token.
Dreyfus, a fan token states “transition passive fans into active fans through transactional fan engagement, “We believe fan tokens are the biggest new trend in the industry and that this will be widely recognized as we add hundreds of more partners in the future and millions of more fans embrace them”, it added.
In the blockchain industry, Fan tokens are titled “utility tokens”. These tokens can be used by fans to support their Idols and contribute to the running of the community.
Juventus fan Giuseppe Bognanni told Reuters that, “It’s nice that the song you voted for is the one you hear, and you think, ‘I participated in that.”
But the question remains, are these tokens a genuine way to show support to the favorite players or “trying to squeeze extra money out of supporters by making up inconsequential ‘engagement’ online polls,” Malcolm Clarke, chair of the U.K.-focused Football Supporters Association stated. Just like cryptocurrencies, these tokens are also volatile and their price fluctuates according to the demand and supply. While many footballers consider it as a loyalty symbol rather than a long-term investment.
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