The emergence of sports fan tokens has been one of the brightest events in the cryptosphere in the last couple of years. In honor of the upcoming FIFA World Cup 2022, today we’ll examine what fan tokens are, how they work, and why they might be a good investment opportunity for you. We’ll also discuss some of the risks associated with investing in fan tokens so that you can make an informed decision when contemplating buying in. With that said, let’s dive right in!
Table of Contents
What Are Fan Tokens?
In essence, fan tokens are digital coins or tokens issued by a company or an organization for its fans. One can use them to purchase products or services from the issuer or can simply hold them as an investment. Many fan token issuers choose to launch their own blockchain platforms and cryptocurrencies so that fans can use their tokens for a wide range of activities on said platforms.
How Do Fan Tokens Work?
Fan tokens, as opposed to NFTs, are fungible, which means that, like currency or cash, they may be swapped for premium goods or fan experiences. The specifics of how fan tokens work will vary depending on the platforms and cryptocurrencies involved. However, in most cases, holders of fan tokens will be able to use them for on-platform transactions, such as purchasing goods or services, voting on proposals, or contributing content. In addition, holders may be able to trade their fan tokens for other cryptocurrencies or fiat currencies on dedicated exchanges.
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The Most Popular Football Fan Tokens
We prepared a list of the best football fan tokens. However, before we jump right into it, it’s worth taking a look at the platform that made their very existence possible.
Chiliz is a platform for fan engagement that uses a blockchain-based ecosystem to link the sports, e-sports, and entertainment sectors with cryptocurrencies. Above all, Chiliz focuses on fan tokens like JUV that operate on top of Socios, the cryptocurrency project’s permissioned proof-of-authority (PoA) Ethereum sidechain.
And here’s the good news: we are excited to announce that fan tokens for Paris Saint-Germain (PSG), Juventus (JUV), Manchester City (CITY), and AC Milan (ACM) are now available on Changelly. This means that you can now purchase CHZ for fiat money and start your journey into the world of fan tokens! Changelly is a great option for those who want to get started in the fan token space but don’t have any experience with cryptocurrency exchanges.
Chiliz runs 2 platforms: the fan token exchange chiliz.net and the fan engagement platform Socios. Let’s take a glance at the latter.
Besides, you can check out our fresh Chiliz CHZ price prediction right here.
What Is Socios?
The fan tokens market is dominated by a platform called Socios.
In an effort to take over the football world, Socios.com has made inroads into the premier leagues in the United States, Turkey, Italy, Spain, France, and other countries. As a result, partnerships between Chiliz and some of the biggest sports organizations in the world, including FC Barcelona, Manchester City, Juventus Turin, and Paris Saint-Germain, have been formed. They also signed contracts with 26 teams that had participated in the American Major League Soccer Competition earlier this year. Additionally, Socios.com has dabbled with the National Football League and the National Basketball Association in the United States.
AC Milan Fan Token — ACM — is a utility token on the Chiliz Chain.
The “ultimate fan engagement tool,” as the ACM founders have described it, lets AC Milan supporters have a say in team management by participating in polls. ACM holders can, for instance, choose the next fan event, the jersey designs, and the names of the practice facilities.
Every AC Milan fan has the opportunity to demonstrate their allegiance to the team by earning reward points on the Socios app, receiving VIP experiences, and buying club merchandise with ACM. Similar to many other crypto platforms, having more tokens ensures you have more influence inside Socios’s Fan Token platform.
You can now exchange your crypto to ACM on Changelly.
In late 2019, Juventus became one of the first teams in the world to introduce fan tokens on Socios.com.
The Juventus Fan Token (JUV) is a fan token offered to supporters of the Juventus football team. It gives fans a tokenized portion of authority, including voting privileges, special access to the Juventus team, prizes, and more. Since 2019, fans have already used the token to choose an official team bus design and a new goal song.
Socios revealed that the fan engagement platform is about to roll out additional features that will enable JUV holders to:
- utilize fan tokens to purchase VIP goods and services;
- earn points for taking part in polls and being active;
- obtain NFT rewards by staking JUV.
Get yourself some JUV tokens here.
The introduction of the CITY fan token adds a fresh level of online interaction for Manchester City’s global following, bringing them closer to the team they adore.
With the Manchester City Fan Token, team supporters can enjoy exclusive club-specific prizes and experiences and claim ownership of voting rights. For instance, supporters can choose the message the captain should wear on his armband, visit the stadium play area, or get access to the VIP area to watch a game and earn club retail discounts.
Rooting for this club? Click to purchase some CITY fan tokens.
The Paris Saint-Germain (PSG) Fan Token is directly linked to the football team Paris Saint-Germain.
Users can exchange PSG for football-related offers by trading with one another. Users that interact more on the platform get more points to enter drawings for rewards like VIP tickets and a chance to earn extra money. In this sense, fan tokens can be closely compared to NFTs because of their fantastic incentives.
PSG tokens are available for exchange on Changelly.
Why Invest in Fan Tokens?
There are several reasons why someone might want to invest in fan tokens. Firstly, since they’re issued by companies or organizations that have a strong connection with their fans, there is often high demand for these coins and, therefore, the potential for significant price appreciation over time. It’s worth adding here that most fan tokens have a limited supply, meaning that as demand for coins increases, prices are likely to go up. Secondly, platforms that issue fan tokens also allow users to interact directly with the business model and economy behind it, providing opportunities for profits through trading and holding as well as participation in decisions regarding the future of the project. Finally, because most cryptocurrencies are still relatively new, many investors see them as “undervalued” at current prices and believe there is still room for growth.
Risks Associated with Investing in Fan Tokens
Fan tokens, just like any other cryptocurrency, can be purchased and traded for profit. Fan tokens’ primary worth, however, comes from the special benefits that one can obtain by using them. Depending on how much value sports fans place on these coveted privileges, prices may increase or decrease.
It should also be understood that the prices of digital assets belonging to this class depend on the activity of sports clubs per se. Like, when Lionel Messi joined Paris Saint-Germain in 2021, the value of the club’s fan token grew significantly. PSG fan tokens were part of Lionel Messi’s compensation package from Paris Saint-Germain in an effort to increase awareness of the cryptocurrency. The value of the PSG fan token soared by more than 50% as a result of the announcement.
Another risk to consider is the fact that fan tokens are only usable on certain platforms. If the platform you’re using decides to end its support for fan tokens, your investment could become worthless. This is something to keep in mind if you’re planning on investing a large sum of money into these tokens.
However, as with any investment, these risks should be balanced against the potential rewards. If you’re careful and do your research, investing in fan tokens can be a great way to support your favorite team or club while also potentially earning a profit.
How to Buy Fan Tokens
The Socios platform allows its users to purchase fan tokens for CHZ, the platform’s native currency.
Besides that, you can acquire these digital assets on exchanges like Changelly — a crypto exchange platform with the best rates and low fees. At this time, ACM and other fan tokens cannot be purchased with fiat. You can either acquire CHZ and trade it for fan tokens on Socios, or purchase BTC first and then exchange it for this type of cryptocurrency.
In terms of the crypto market, club-issued coins highlight how decentralized technology may benefit millions of sports fans by connecting them with digital assets.
It will be interesting to watch how far fan tokens can go with regard to adoption and whether they can pull the vast majority of sports fans into the crypto world in light of the fact that well-known and well-liked clubs like Juventus and PSG have joined Socios.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.