Fan tokens are cryptocurrencies that carry unique membership benefits for fans of a particular sports club, music fan club, or other fan-based organization. By owning a team’s fan token, you can participate in its governance by voting on decisions or exchanging them for the team’s merchandise. Though, in essence, they resemble NFTs, they are completely fungible. This means they are easily interchangeable for merch, in-person experiences, and more. What’s more, they bring a sense of community to the club’s fans. To that end, their price is dependent on how much fans value participating in their club’s governance.
How fan tokens work
Fan tokens can be purchased just like other cryptocurrencies. Usually, their price is determined by the seller. However, this price can change depending on the prevailing market conditions or the performance and hype behind the club they represent.
Once you purchase a certain number of these tokens, you get the right to vote on several matters concerning your favorite club. These matters tend to vary, but some of the most common include the design of the club’s merchandise and tour bus, locations of matches, and the likes. This way, you feel part of the club you support, which to most fans is a prestigious honor. The more tokens you hold, the more weight your vote carries.
Where to get fan tokens
Chiliz is a blockchain secured by the Ethereum network that plays host to the majority of the fan tokens in existence. The platform also developed the Socios.com platform, where fans can access the tokens of their favorite clubs. The network utilizes its native CHZ token, which is the acceptable mode of payment on both of their platforms.
Sports clubs host Fan Token Offerings (FTOs) on the Socios.com platform. FTO refers to a period when these tokens are listed at fixed prices for fans to purchase before they are listed on exchanges. This way, these clubs get to grow their fan bases by offering their supporters rights of governance through fan tokens. What’s more, they obtain additional revenue from the sale of these tokens.
Therefore, to purchase a fan token, you first have to buy CHZ through any of the popular centralized exchanges, then exchange it for these tokens on the Socios.com platform. Some fan tokens are also available on popular exchanges, but smaller tokens are usually listed on decentralized exchanges such as PancakeSwap.
Leading fan tokens in 2022
ALPINE
This is a fan token launched by the Alpine Formula One racing team. Alpine is a French racing team that races Alpine Cars in Formula One, which are produced by the Renault Group. It is listed on Binance, which is currently the leading crypto exchange globally. Holders of this coin get to participate in the team’s voting polls, which are hosted right on Binance. They also get to purchase collectibles and NFTs and stake these NFTs for rewards on the NFT PowerStation. They also gain access to in-person experiences such as meeting the drivers, signing merchandise, and more.
Paris Saint-Germain Fan Token (PSG)
The PSG fan token is a cryptocurrency of the popular French football club, Paris Saint-Germain, commonly known in football circles as just PSG. Since its launch in 2020, this token usually rises in value when the club posts exemplary performance on and off the pitch. For instance, when the club purchased renowned player and legend Lionel Messi, the token rallied significantly. It was created to capitalize on fans who are willing to pay to get their opinions heard on the governance of the club. Its main aim is to promote interaction and direct participation with their fan base, as well as giving the regular Joe a vote on governance decisions.
Manchester City Fan Token (CITY)
This is a fan token hosted on the Socios.com app by Manchester City, a popular English football club. PSG’s success inspired the token since its launch a year earlier. The CITY token experienced a brief rally in 2021 after rumors speculated that Christiano Ronaldo would be joining the team. However, the football star joined the team’s biggest rivals, Manchester United, causing the coin’s value to decrease.
Ownership of these tokens grants holders voting rights to various decisions, and they can also earn rewards and experiences from the club. Manchester City still enjoys plenty of success in both the national and international football scene. At the time of writing, it is currently in the running for the Champions League trophy, and if it manages to win it, the CITY token will definitely rally.
S.S. Lazio Fan Token (LAZIO)
This is a fan token created on Socios.com but can be traded on the Binance exchange. It is a token of SS Lazio, a popular and prestigious Italian football club with a rich and successful history. Holders of this coin can get to vote on club decisions, such as the message on their captain’s armband. They also could win access to the player area in their stadium, VIP tickets to a match, or discounts on the club’s merchandise. Further, by listing on Binance, fans get easier access to these coins, as well as the signature low transaction costs of the Binance Smart Chain.
FC Barcelona Fan Token ($BAR)
This is a fan token that was launched in 2020 by the Barcelona Football Club, one of the leading clubs in Spain. These tokens can be purchased on the Socios.com app. At the time of their launch, they went for 2 euros a pop. In a few hours, all 600,000 tokens in supply were sold out for a gross total of $1.4 million.
Since then, holders of these tokens have had an opportunity to vote on a variety of the club’s undertakings, such as the design of a mural in their locker room. What’s more, 22 $BAR holders were appointed to play at the club’s Camp Nou stadium. These token holders also voted on the exchange of $JUV and $BAR between team members of Barcelona and Juventus football clubs.
Conclusion
Fan Token Offerings (FTOS) are periods when football clubs and other organizations launch their fan tokens, listing them at fixed prices on a platform like the Socios.com app before they are marketed on exchanges. This gives fans a chance to buy these tokens and participate in their favorite club’s governance decisions. What’s more, they can obtain discounts on club merch as well as access to in-person experiences by holding these coins.
