A dive into fan tokens

Fan tokens are utility chip that sports clubs issue and sell to further integrate fans into the club. These tokens, which run on the blockchain, are similar to other loyalty programs, but now include a cryptocurrency component.

By collecting tokens, fans can enjoy a wide range of membership benefits such as accessing discounted and exclusive items and tickets, participating in contests and participating in VIP experiences.

Why do sports teams need fan tokens?

To give fans a voice and make them feel like they own part of their favorite sports club. Thanks to fantokens, supporters can vote on club matters.

In other words, sports clubs have found an opportunity to increase the level of outreach and engagement among followers, and have managed to create unique fan experiences through cryptocurrencies.

Through a mobile app, fans can now collect tokens and vote on important team decisions (eg from the design of the team’s uniforms to what music the players should listen to during a warm – up before the match or who was the player of the week).

The more tokens a fan has, the higher his voting power on club decisions. That tab will also enjoy a greater impact assessment, moving them up along different reward levels.

These tokens are primarily aimed at sports fans. However, traders can use these tokens for speculative purposes. Let’s say your team has signed a world-class player; this can affect the price of the token to rise. Conversely, if the club does poorly, there may be a reason to sell the token.

In addition, fan tokens still carry all the risks of traditional cryptocurrencies.

Before buying, keep in mind that they are subject to hacks, regulatory restrictions or general volatility in the crypto market.

Where can I buy and use my favorite fan tokens?

Exchange as Phemex offer the chance to trade a large number fan tokensincluding such as FC Porto ($ PORTO), SS Lazio ($ LAZIO) or Alpine F1 ($ ALPINE).

Football clubs are the most visible example of using these tokens to measure and monetize fan loyalty.

Around 60 major football clubs have collaboration with Sociosa platform that started distributing fan tokens for free in the form of a GPS-based hunting game, similar to pokemon go.

The Socios app allows fans to interact with favorite sports clubs and other supporters and participate in fan-driven decisions.

For its part, the Socios platform runs on a network called Chiliz, which also offers its control token, $ CHZ.

Although anyone with software development skills can build a cryptocurrency from scratch, Chiliz pioneered the fan-token space by issuing most of the official fan-tokens that exist.

Through the Socios app, the only way to access fan tokens is by swapping them for $ CHZ. Users can freely trade $ CHZ and other fan tokens on exchanges such as Phemex.

Over the past two years, many of these sports clubs have heavily promoted fan tokens on official merchandise and stadium banners to connect their mainstream audiences with the crypto world.

To name a few examples of influencing the club’s decisions through fantokens, the football club is Sevilla FC ($ SEVILLA) vote to decide which charity to show off their shirts next season. And in F1 racing, the Aston Martin ($ AM) team had one vote to decide Lance Strolls helmet design for the Austin Grand Prix.

Essentially, the primary purpose of fan tokens is to create a strong connection between a sports unit and its supporters so that clubs can monetize the relationship.

Furthermore, the niche use of these coins can affect demand, resulting in a volatile and risky asset to hold on to in the long run.

As a sports fan, the best option is to treat fan tokens as another way to enjoy your favorite sports teams. Win or lose. Up or down. They will always be your team. And your tokens.