Fan Tokens are cryptocurrencies that allow holders to vote on minor decisions related to sports clubs, earn rewards, and have the opportunity for unique meet-and-greet experiences. They can be used by any other organization to engage a community with digital assets.
Fan tokens in action
For example, fan token holders can vote on which uniform a team wears. They could also be rewarded with game tickets or clothing. There are endless possibilities. The concept is still fresh and the use cases are still being created.
The teams offering these tokens hope to increase the engagement and awareness of their teams. Although we like to think of teams as operating with the sole goal of winning, they ultimately operate as a business. They want to generate income and make money. These teams are beginning to realize that there could be lucrative potential in creating fan tokens.
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How do they work?
Socios is currently the leading token platform for fans. Their business model has been copied by other blockchain companies trying to break into this cryptocurrency sector. Binance has also joined the market.
Teams make deals with these companies to mint fan tokens on a blockchain. Upon agreement, a Fan Token Offering (FTO) is scheduled. People can buy these fan tokens for a fixed price at the time of the FTO. After the FTO, fan tokens can go up and down in value based on demand, just like other cryptocurrencies. If a team is in the running for the championship, their token could be in demand. If a team isn’t performing well, their token value could sink.
Where to buy fan tokens
Fans can purchase most tokens on Binance or on their phone through the Socios app. It depends on user preference, however there is a bit more of a learning curve if using Binance.
The Socios app can be downloaded for Android and iPhone users. Offers a smoother experience. Surveys, rewards, and other perks are all within the app. To purchase fan tokens on Socios, users must have a Chiliz ($CHZ) balance. CHZ is the currency that allows users to buy tokens on the Socios platform. The steps to purchase are simple and clearly explained in the app.
Who has issued Fan Tokens?
Many prominent organizations are starting to issue their fan tokens. The list includes some of the most prominent football clubs in Europe, a couple of Formula 1 teams, and even some esports clubs have their own tokens.
As of May 2022, US sports teams have not issued any fan tokens. But, in the last year, Socios has struck advertising deals with the NFL, NHL and NBA. It looks like fan tokens for sports clubs in the US could be on the way.
As of now, more than 50 fan tokens are listed on coinmarketcap.com, and the list will continue to grow. More and more clubs are recognizing that fan tokens serve a unique purpose. Fans can support their team no matter where they live. Keep an eye out for your favorite team to issue their own fan token in the future.