There is no denying that finance fan tokens are rising in popularity and market value. Since the beginning of 2020, fan tokens have become across-the-board to sports fans to connect and interact with their favorite teams amidst the pandemic. This exclusive community of token holders can raise their fan engagement to the next level.
Fan tokens became popular in different sports to gain fan-related membership perks. You can get these digital assets in a fan token platform available online. The token holders can also have VIP experiences and other unique benefits. Having more fan tokens means having more participation and a greater chance to influence team decisions.
According to statistics dated from December 2020 to September 2021, these digital tokens increased almost three times at their peak. It only shows that finance fan tokens can go a long way and further increase their influence in the sports world.
What other things can a fan token do? Can they hold the future of the sports community? How far can fan influence go when it comes to club decisions? This article will explain all you need to know about fan tokens.
Fan Tokens Defined
In a survey conducted in the U.S last January 2022 among 2,210 respondents, 28% responded that they are avid sports fans, 48% are casual fans, and the last 26% are not fans. As we can conclude, 74% of the respondents are into sports. Some of these sports fans do not even know that fan tokens exist. It can be frustrating not to get close to your favorite football or basketball team. That is why they created fan coins.
These are not tangible coins or money like other cryptocurrencies, but you can have exclusive perks as a fan if you have them. So what are finance fan tokens? How can you get them?
What is a finance token?
A finance token, also known as a fan token, is a prominent cryptocurrency in the sports world. If you purchase fan tokens, you will have the chance to be part of your favorite club. You will also get an opportunity to meet your favorite sports teams, win signed merchandise, have unique fan experiences, get your opinions expressed through participating in club decisions, and win monetary rewards. Fan tokers are fungible, which means you can trade tokens or use them as fiat currency to buy merchandise designs or VIP access. You can also participate in music fan clubs to decide which music to play during halftime.
Types of Fan Tokens
Sports Fan Tokens
Sports fan tokens are digital assets created the same way they made other cryptocurrencies. One of the applications and websites where you can access your account is Socios.com. Being part of these sports organizations allow you to have a better fan experience. Another good news is there is no monthly or yearly subscription fee to this.
The Chiliz network is one of the first and most well-known starters of sports fan tokens. It promoted the birth and growth of other fan tokens such as the AC Milan Fan Token, Juventus Fan Token, Manchester City Fan Token, and Atlético de Madrid Fan Token. In football, for example, the fans have an increased chance of meeting their favorite player.
They can also use their fan token to buy signed merchandise designs, unlock VIP rewards, get a special VIP seat, establish club leadership, etc.
Music Fan Tokens
Music fan tokens or artist tokens are creating a trend in the music industry. In the late 90s, sharing music from peer to peer emerged. It resulted in the fast release of copies of music for free! In the first half of 2020, there are lots of canceled performances, the digital copies boomed.
A few months after that, the music world joined blockchain technology. It didn’t stop the artists from connecting to their fans and sharing their precious works. It also helped a more engaging experience for the fans. Zimrii Music is one platform that supports both artists, fans, and economic growth.
Are Finance Fan Tokens Considered a Cryptocurrency?
Finance fan tokens are tradable cryptocurrencies that you can use to support the sports or music that you like. Unlike NFTs, you can only use these tokens to exchange or swap with the merchandise designs of your favorite teams or have special privileges.
A finance fan token is a cryptocurrency you can buy in a crypto market, but it doesn’t have its own blockchain. Developers create on the blockchain of other existing blockchains and cryptos. Therefore, these crypto tokens are considered a subset category of a cryptocurrency with blockchains. Although both of them are such assets, crypto coins only allow you to buy and sell, while the advantage of fan tokens is you can use them as utility tokens and for many other reasons.
How do Fan Tokens Work?
Fan token works in many ways because it has one specific purpose that branches to many rewards. The token holders can use them to purchase or trade, just like a regular cryptocurrency. Since it works as a crypto token, there is also a chance that it will fluctuate.
The platform or the individual seller generally sets this digital asset. The prices may increase or decrease depending on the popularity of the token and the team you want to support. Fan token offering is interchangeable, which allows you to get luxury goods from the sports clubs you support and join. However, there are also non-fungible tokens.
Benefits of Owning Fan Tokens
With the rising popularity of fan tokens, their benefits are also increasing and becoming more valuable. Here are the benefits of owning fan tokens.
- Voting Rights – They have the right to vote to solve some issues and decisions.
- Music Fan Clubs – Fan token holders have the right to choose what music to play in which stadium. VIP Experience – Since you are part of the club, you can access different VIP grounds. It includes meet-and-greet sessions, getting signature merch, and fan-related membership perks.
How to Get Fan Tokens
You can get legitimate fan tokens on different platforms. You can get fan tokens outside these platforms, such as on the Socios website. Fan tokens can launch at Fan Token Offering (FTO), where you can see them on sale.
How to acquire fan tokens on Chiliz and Socios:
- Buy Chiliz
Top up your wallet to get some fan coins. Go to the Chiliz or Socios website and click on your wallet. Tap the ‘Top-up’ button, then enter the amount of $CHZ you want to purchase.
- Pay Chiliz
Click on ‘Proceed to Payment’ and select your preferred payment mode. Click ‘Buy Now, enter your payment details, then proceed to payment. You will receive a payment receipt once thriving.
- Buy Fan Token
You may download the Socios app in the Play Store or Apple Store to buy fan tokens. Once downloaded, click on “Get Fan Token’ then type in how many tokens you would like to purchase. Pay using your $CHZs and tap on ‘Buy Now’ to confirm.
Top 5 Recommended Sites for Acquiring Fan Tokens
Aside from the famous Chiliz network, here are some other platforms where you can acquire fan tokens:
The Value of Fan Tokens
The price of a fan token can rise or fall depending on the law of supply and demand. It can increase depending on the result of a particular game and fall when the sports and the teams are not appreciated. However, since the value can quickly fluctuate and you can’t easily sell it in the market once the supporting team is also down.
The crypto market is known to be volatile. It means that it tends to change quickly and rapidly without notice. Therefore it is considered a high-risk investment strategy but a worthy and more reliable one, especially if it’s a long-term plan.
Factors that Affect the Value of Fan Tokens
Here are some factors affecting the value of fan tokens:
- A signing of a new player can either increase the interest of fans
- The winnings and losses of a team
- If the fans decide not to support the team anymore, then the value of fan coins will go downhill.
- It is not a high-risk investment, so many people will try to ride on until they lose interest.
Should You Buy Fan Tokens?
Fan tokens’ prices can change from time to time. If you are ready for that, then you may consider trying to buy some. Since fan coins are more of a buy-in rather than an investment, you should keep in mind that you should not expect a high investment return.
According to the news published in marca.com, a fan token brings the fans and audience closer to their favorite teams. It is more of a utility token than a crypto coin made for investment.
Tips on Choosing the Right Fan Token to Invest On
There is no right or wrong when choosing your favorite sports team or favorite musician. Nevertheless, here are some tips that you can follow on choosing the correct fan token to invest in. First, you need to choose a reliable and legitimate platform. It is where you can buy some credits and use them to purchase some fan coins.
You also need to be familiar with the market trend. It includes the fluctuation discussed in the previous part of the article. Keeping these few tips in mind will help you choose the best sports club for you.
A finance fan token is an excellent way to support and encourage the team or band you love. It would help if you remembered that a fan token is more of getting some rewards, VIP experiences, voting rights to a club, and other relational matters rather than a long-term investment.
The trend is constantly changing, and the people in the teams you are supporting are replaceable. If you want to be successful in the world of fan tokens, you should be able to understand the advantages and disadvantages of it. The future of sports fandom is not entirely dependent on the number of fan tokens you have.