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The advent of digital currencies has opened up a world of possibilities for individuals and businesses: low-cost financial transfers, 24-hour investment, unsecured borrowing, decentralized applications, monetization of the entertainment and gaming industry. And even entry into the arena: sports and club. Celebrities, companies, and sports clubs can also issue a Fan Token token. It uses the credibility and popularity they have among their fans to encourage them to invest or buy their products.

What is a Fan Token?

Fan Token is a digital currency that people can use to enjoy the benefits of being a member of a sports club, from voting in club decisions to receiving rewards and designing club uniforms. This type of digital currency is used by sports clubs, music clubs, and other organizations.

In other words, the support token is the same as the NFT, with one obvious difference. Under digital copyright law, the ownership of an NFT token is transferred and can no longer be shared, but the Fan Token is completely transferable. This means that support tokens can be easily exchanged to benefit from the products and services of the publisher club. In addition, fan tokens create a distinct identity and bring people together under a cohesive and intimate community.

Another feature of this type of token that distinguishes it is that it does not necessarily support the digital currency and does not necessarily have to depend on cryptographic value such as bitcoin or Ethereum. The price of a fan token is determined by the number of fans who want it or the value they attribute to it. Several football clubs, including Manchester City, Barcelona, ​​Juventus, and Paris Saint-Germain, have issued fan tokens. Even the Indian Premier League is looking to offer its fan token.

What can be done with a Fan Token?

Fans can buy fan tokens and trade them just like any digital currency. When the seller usually sets trading, the price of a support token. In addition, it is affected by market conditions as well as popularity.

When you buy a fan token, you will also get the right to vote and intervene in the decisions of your favorite club. The right to vote applies to decisions such as the club’s business plan, bus design, venue, and so on. Such benefits are given to the fans to arouse their sense of involvement in the club’s affairs and make them feel proud and respected. As the popularity of the club increases and the number of people who buy these tokens increases, so does the price of the tokens.

Fan Token creates a dedicated community of pro-loyal fans. And presents a new way to participate in a reward-based voting system. The more Fan Tokens you have, the more impact you will have on the club, and the more dramatically you will express your loyalty to your club.

How to buy a Fan Token?

To buy this type of token, you first need to buy the Chilean Digital Currency (CHZ) from an exchange. Of course, some fan tokens are not available on the Chilean network and Socios.com.

Fan tokens are rare digital currencies that belong to clubs and allow access to a voting cryptography ledger. Chiliz is used to buy and trade various fan tokens available on Socios.com. Tokens can be exchanged at Chiliz.net. Chiliz.net is an in-house exchange of these Chilean digital currencies and trading platforms.

Some fan tokens are available at popular centralized exchanges, but others do not have the necessary qualifications to be on the list of valid centralized exchanges. You can only buy these fan tokens through decentralized exchanges such as PancakeSwap.

Introducing several popular fan tokens

Manchester City fan token

CITY is the official token of Manchester City Football Club, created with the participation of Socios.com and released on May 25, 2021. CITY is located on the Ethereum platform and benefits from the Chilean infrastructure. The purpose of making this token is to create closeness among the fans. With this token, fans can enjoy the right to vote on social issues related to the club. They can also take advantage of special benefits and meet players.

Barcelona fan token (BAR)

BAR is the official support token of Barcelona’s Spanish Football Club, which was released on June 22, 2020. It is under the ERC-20 standard and uses the Chilean infrastructure. This token provides an opportunity for fans to connect with the club and enjoy exclusive benefits and participation in the club’s decisions. BAR cannot be extracted, but it can be obtained as a prize in Socios’s games.

Inter Milan token (INTER)

INTER is the token of the Italian football club Inter Milan, which was first released on September 10, 2021. It is under the ERC-20 standard and uses the Chilean infrastructure like other fan tokens. This token is intended to fill the gap between the fans and the club.

Paris Saint-Germain (PSG) fan token

PSG is the official fan token of the Paris Saint-Germain football club. Which entered the field of digital currencies on January 28, 2020. This token is located in the side chains of the Ethereum blockchain and is a type of Utility Token that is used to access a series of specific services and products.

Is it advisable to invest in tokens?

Just like other digital currencies, fan tokens are risky. According to a BBC report in 2021, fan tokens have faced $ 300 million in pumps since their release, and some of them have plummeted since their release. Manchester City and Lazio fan tokens have fallen 50 and 70 percent of their price levels, respectively.

It should be noted that a club may acquire a large percentage of its fan tokens to seize the market. The BBC reports that the top 13 clubs on the Socios platform have about $ 1.9 billion in tokens, while only $ 367 million in tokens are in the hands of fans. Therefore, you should be careful about the influence of clubs and their commercial motivation.

In addition, experts believe that the risk-reward (i.e., the amount you need to invest to be involved in the club’s management) is in the clubs’ interest, which means that their risk is practically zero.

Of course, looking at the performance of this type of digital currency, you can not despair of it. You should also look at their popularity and keep in mind that this type of digital currency is still young and has growth potential.

Concluding remarks

A fan token is a digital currency that allows fans to interfere in the club’s decisions by voting. By purchasing this token, fans will enjoy the exclusive rewards and benefits of membership in their favorite clubs. The price of a token is not necessarily dependent on one of the digital currencies. It can vary according to popularity and market conditions. It is possible to buy fan tokens by buying Chiliz, and after buying it, you can buy fan tokens through Chiliz’s internal exchange. Popular clubs such as Juventus, Barcelona, ​​Manchester City, Inter Milan, Paris Saint-Germain, and AC Milan have issued fan tokens. It should be noted that a huge amount of fan tokens owns the clubs. Instead of being in the hands of the fans, and this will increase their power in the market.