What are Fan Tokens?
What are Fan Tokens?
Fan Tokens are a digital form of money that aims to give special benefits to people who support sports teams, bands, and other groups. Holders of Fan Tokens frequently benefit from membership benefits like access to unique content, rewards, events, and the ability to vote on club decisions.
Owning Fan Tokens is an opportunity for fans to determine the future of a sports team or pop artist and help grow their name in the Web 3.0 marketplace. If someone purchases the Fan Tokens, a sports club or pop singer will have a source of income to continue operating.
Typically, world-famous football clubs like Manchester City, AC Milan, and Barcelona are the ones that produce Fan Tokens. These tokens are being exchanged like other cryptocurrencies and the cost varies depending on the state of the market as a whole.
How do Fan Tokens work?
Basically, an organization (like a band, sports team, or other group) issues fungible tokens and sells or distributes them to supporters or investors. Similar to cryptocurrencies like Bitcoin or Ethereum, these tokens are frequently sold for retail purposes on secondary markets. Additionally, Fan Token is traded with stablecoin trading pairs, as well as BTC, BNB…
Owners of Fan Tokens often receive restricted governance powers. For instance, owners of the Fan Token of Paris St. Germain can vote for the FIFA 22 fan edition’s cover and have access to a special VIP event.
Fan Tokens have a small market capitalization. S.S. Lazio, Alpine F1 Team, and PSG each have market caps of $66 million, $50 million, and $29 million, respectively, as of September 2022. Meanwhile, the market capitalizations of the major crypto assets, Bitcoin and Ethereum, are over $380 billion and $200 billion, respectively.
Fan Token isn’t only for sports fans. The concept of a social token, where followers of celebrities and influencers can also issue their own tokens, has long been promoted by platforms like Rally and Roll. The market value of Rally’s governance token is now around $140 million.
Owning Fan Tokens and Social Tokens has a wide range of advantages, including the ability to vote on matters relating to a band or sports team. The governance token of decentralized finance (DeFi) initiatives, meanwhile, enables holders to take the helm in the administration of their own protocols. This implies that having these governance tokens entitles you to several advantages, including the ability to manage the billions of dollars worth of silver invested in that project.
Where can I get Fan Tokens?
Purchasing Fan Token is a comparable approach to purchasing any other cryptocurrency available on the market. You can purchase them on a cryptocurrency exchange like Binance, which is centralized, or Chiliz, which is decentralized and only trades Fan Tokens.
You will then receive Fan Tokens in your Web3 wallet, just like any other cryptocurrency.
For example, You can use these Fan Tokens to earn rewards on the platform or take surveys. Or you can sell them on a cryptocurrency exchange if their value increases.
=> Trade Fan tokens here: https://tokenize.exchange/
Growth Potential and Should I Invest in Fan tokens?
Like other cryptocurrencies, Fan Token’s price fluctuates in response to market changes. Furthermore, the value of a Fan Token is influenced by a variety of circumstances relating to the club issuing the token, such as the addition of new players, the change of coaches, the winning of a championship trophy or a big tournament, and so on.
In fact, the cryptocurrency market is going through its most challenging time, and Fan Tokens are now far more expensive than they were during IDO. Therefore, you must consider the market’s overall trend while investing in any cryptocurrency asset, including Fan Token.
However, any investment has certain risks, so readers will need to research carefully. Hopefully, through the above article, readers can grasp the basic information about Fan Token to make their own investment decisions.
Cryptocurrencies are subjected to high market risk and volatility despite high growth potential. Users are strongly advised to do their research and invest at their own risk.