Fan Token: All You Need To Know
What Is a Fan Token, Exactly?
Fan tokens are a type of cryptocurrency that entitles users to a number of fan-related membership benefits at football clubs.
Discounts, rewards, voting rights on kit designs and club choices, and involvement in one-of-a-kind sports team experiences are all possible.
Socios, a Chiliz mobile application, can be credited with being the first to create fan tokens, which allow Socios users to vote on ideas relating to individual sports teams, such as uniform design changes, team matches, and more.
Socios users may vote on the clubs’ choices using smart contracts that operate on the Chiliz blockchain. Users must first purchase Chiliz (CHZ), which may then be exchanged on several platforms, in order to get fan tokens.
Sports teams utilise fan tokens to provide supporters access to VIP amenities like meet and greet with their favourite players and premium box seats during games. The more fan tokens you have, the more chances you have to win special rewards and vote for your favourite team.
Shareholdings of fan tokens allow fans to participate in fan-led decisions while also functioning as a ticket into a secure, privileged inner circle of fans who share similar passions and viewpoints via a mobile voting platform.
The greater a fan’s clout rating increases, the more tokens they have and the more votes they cast, driving them up the reward levels until they have access to the most exclusive VIP privileges accessible.
The majority of fan tokens may be found on Socios.com, however some, such as the Paris Saint-Germain Fan Token (PSG), can also be accessible on well-known centralised exchanges (CEX), while others may not be certified or large enough to be published.
The value of Fan tokens, like the value of many other cryptocurrencies, can fluctuate due to supply and demand. Some football fans who hold these tokens claim that the prices are influenced by the team’s movements or activities. This may be shown in new player signings, management changes, and league results.
One of the best examples of this is the PSG token, which had a price increase of 300 percent or more in a couple of days when Lionel Messi, one of the best football players in the world, transferred from Barcelona to PSG.
After the trade was completed, the price of the PSG token dropped, but it spiked again a few days later. This is a clear indicator that the price of a fan token is determined by the club’s’major’ activities. Winning or losing a match, a significant player transfer, or any other important event can quickly raise or lower the worth of a fan token.
It’s usually a good idea to think about the product’s value and prospective solutions before making any investment. The utility of fan tokens is confined to the specific privileges that sports teams provide.