A fan token is a cryptocurrency issued by a specific sports team and allows its holders to participate in the governing activities and attain exclusive rewards & discounts.
What Is a Fan Token?
Fan tokens are a type of cryptocurrency that entitles users to a range of fan-related membership benefits in a football club. It can include discounts, prizes, voting rights on kit designs & club decisions, and participation in one-of-a-kind experiences offered by the sports team.
Chiliz mobile application, Socios, can be termed as the pioneer of creating fan tokens that allow Socios users to vote on ideas concerning specific sports teams, such as uniform design modifications, team matches, and more. Smart contracts that run on the Chiliz blockchain allow Socios users to vote on the clubs’ decisions. To get fan tokens, users must first buy Chiliz (CHZ), which can then be traded on different exchanges.
Fan tokens are used by sports teams to allow fans to unlock VIP benefits, such as meet & greets with their favorite players and premium box seats during a game. The more fan tokens you have, the more possibilities you have of receiving unique prizes and voting power for your favorite team.
Through a mobile voting platform, shareholdings of fan tokens allow fans to engage in fan-led choices while also acting as a ticket into a secure, privileged inner circle of fans who share similar passions and views. The more tokens a fan has and the more votes they cast, the higher their clout rating gets, pushing them up through the reward tiers until they have access to the most exclusive VIP privileges available.
Most fan tokens are available on Socios.com, however, some, like Paris Saint-Germain Fan Token (PSG), can also be found on well-known centralized exchanges (CEX), but others may not be certified or substantial enough to be listed.
Fan token values, like the value of many other cryptocurrencies, can rise and fall in response to supply and demand. Some football fans who own these tokens have also stated that the prices are affected by the team’s movements or activity. New player signings, managerial changes, and league performance are all examples of this.
A great example of this is the PSG token, which experienced a price gain of 300%+ in a matter of days, as one of the greatest football players in the world, Lionel Messi, made a transfer from the Spanish club, Barcelona, to the French club, PSG. The price of the PSG token fell down after the transfer was complete, however, it skyrocketed again a few days later. This is a clear indication that the price of a fan token depends on ‘major’ activity in the club. Winning or losing a match, major player transfer, or any other BIG news can increase or decrease the price of a fan token easily.
While making any investment, it’s always a good idea to consider the product’s worth and potential solutions. Fan tokens’ utility is limited to the particular perks that sports teams offer.
