Fan tokens are a new type of coin that have emerged as a result of sports teams embracing cryptocurrencies to interact with its supporters.
Sports teams may further involve supporters into the team by issuing and selling fan tokens, which are utility tokens. These blockchain-based tokens are comparable to existing loyalty schemes but now now feature cryptocurrencies.
Fans may access a variety of membership benefits by accumulating tokens, including reduced and exclusive items and tickets, entry into contests, and access to VIP events.
Why Are Fan Tokens Required by Sports Teams?
To offer supporters a voice and give them a sense of ownership over their preferred sports team. Supporters may vote on clubs using fan tokens.
In other words, with the use of cryptocurrency, sports teams have been able to enhance their degree of outreach and connection with fans while also managing to develop distinctive fan experiences.
Through a smartphone app, supporters may now gather tokens and cast votes on important team choices (such as who was the player of the week or the design of the club’s uniforms) by collecting tokens.
The more a fan’s voting influence over club choices, the more tokens he has. Additionally, that fan will benefit from a higher clout score, which will advance them through different reward levels. Sports lovers are the main audience for these tokens.
These tokens can, however, be used by traders for speculation. Suppose your team has acquired a star player; this might cause the token’s price to increase. On the other hand, if the club is struggling, it can be a good incentive to sell the token.
Fan tokens also continue to carry all the dangers associated with conventional cryptocurrency.
Before purchasing, one should be aware that they are subject to regulatory constraints, market volatility, and hacking.
Where can I purchase and utilize my preferred fan tokens?
Numerous fan tokens, like those for F.C. Porto ($PORTO), S.S. Lazio ($LAZIO), and Alpine F1 ($ALPINE), may be traded on exchanges like Phemex.
The most prominent use of these tokens to gauge and reward fan loyalty is by football clubs.
Socios, a company that began by giving away fan tokens in the form of a GPS-based Pokémon Go-like hunting game, has collaborated with almost 60 major football teams.
With the help of the Socios app, sports fans may communicate with other followers and their favorite teams, as well as take part in fan-driven choices.
The Chiliz network, which houses the Socios platform, also provides its own governance token, $CHZ.
Despite the fact that anybody with knowledge of software development may create a cryptocurrency from nothing, Chiliz led the way in the fan token industry by creating the majority of the current official fan tokens.
Fan tokens can only be accessed through the Socios app by exchanging them for $CHZ. In exchanges like Phemex, users may freely swap $CHZ and other fan tokens.
In an effort to introduce their general public to the world of cryptocurrencies, several of these sports organizations have heavily pushed fan tokens on official apparel and stadium banners during the past two years.
To give one example of how fan tokens might be used to influence club choices, Sevilla F.C. ($SEVILLA) is holding a vote to pick whose charity will be featured on their uniforms in the upcoming season. Additionally, the Austin Grand Prix helmet design for Lance Stroll was put to a vote by the Aston Martin ($AM) crew.
In essence, the main goal of fan tokens is to build a close bond between a sporting organization and its fans, enabling teams to profit from that bond.
Furthermore, the limited demand for these coins may have an effect on supply, making them a dangerous and unstable investment to retain over time.
The best course of action for a sports fan is to view fan tokens as an additional option to support their favorite teams. any way. Up or down Your team will always be them. your tokens, too.