What is a Fan Token and how does it work? – in a simple word
What is a fan token?
A “Fan Token” or fan token is a currency code that indicates support for a sports team, a specific organization, a content producer, or a sport. Although fan tokens are similar to ” non-exchangeable tokens ” (NFTs) due to their membership and membership in a particular group, in principle, most fan tokens, such as the popular Ethereum and Bitcoin, can be exchanged for any coin and replaced with other coins.
Tokens of digital currency are due to the applications for which they are defined. The more facilities club managers can offer to tokens owners, the more fans will be willing to buy and use them. Of course, this is only part of the story. The second part of the story is about the club’s popularity or the person providing the token.
The more fans a team has, the more likely its tokens will be successful and popular. Most of the available fan tokens are related to sports clubs, especially football and basketball clubs. It is essential to have sufficient information about tokens to better understand the concept of advocacy tokens. For more information on this, you can refer to the following article.
How does a fan token work?
The way tokens work is the same as for other digital currencies. Users can buy currencies such as BitTorrent, Solana, and Ripple by going to digital currency exchanges. They can also buy the fan tokens they want. Of course, fan tokens can be bought and sold in fewer exchanges than other digital currencies, and for this reason, users must first find a suitable exchange to sell fan tokens. “Chiliz Network” exchange and “Binance” exchange are among the major exchanges selling fan tokens.
Fan tokens are less stable and subject to market excitement than other cryptocurrencies in the digital currency market. Therefore, it is possible to increase or decrease their price in the market, and there is no guarantee of profit and income by having fan tokens, and the clubs are not responsible for the price changes of the tokens. Depending on the project, the goals and capabilities of the tokens change. In the following sections, we will answer the question of fan tokens’ characteristics while reviewing the main projects for creating fan tokens.
What is Chiliz Digital Currency in Fan Token?
Chiliz is a digital currency project that claims to be a Blockchain sports and entertainment bloc. Chiliz is the most popular fan token platform and has its blockchain to create fan tokens. Chillis has developed the Socios.com platform to connect fans with their favorite teams and clubs. Currently, this is the largest site for creating fan tokens.
Many fan tokens have been created on this website and in the context of the chiliz digital currency project. Football clubs such as Juventus, Barcelona, Paris Saint-Germain, Formula One clubs such as Aston Martin and Alfa Romeo, and cricket clubs from the Indian Premier League are some of the most successful examples of projects based in Chile. Part of Lionel Messi’s signing with Paris Saint-Germain was done with the club’s fan tokens, which shows the potential of the fan tokens.
Users get the chance to vote on various club topics by purchasing their favorite team support tokens. Of course, this does not mean commenting on all the club activities and only includes the items that the club chooses. There is no definite list of applicable cases for clubs issuing fan tokens, but some options are as follows.
- Determine the design of the club bus
- Choose between different locker room designs
- Specify music for when players enter the field or after a goal is scored or won
- Play the fan message in the locker room before the game starts
- Draw and give away free tickets and sportswear to the holders of fan tokens
- Exclusive content for token holders
- Ability to watch the game from a special place
Due to the sharp price fluctuations in the cryptocurrency market, trading and investing in this market without obtaining digital currency training can lead to irreparable losses. Due to the importance of this issue, “Faradres” has compiled an introductory video tutorial on digital currencies or cryptocurrencies, the link to which is provided below.
What is a chiliz Token?
The chiliz token operates under the symbol “CHZ” as fuel on the Socios.com website. This token is made on the Ethereum network with the “ERC 20 ” standard. For users to be able to purchase their desired team tokens and participate in their programs and polls, they must first install the site application on their phone and create an account. To buy fan tokens, users need some CHZ digital currency that they can buy from various exchanges or the site itself using money.
By providing chiliz tokens, users can purchase their desired club tokens from Socios.com. Different teams poll their polls in this app. That club token holders can participate in these polls and contests and, in addition to a small impact on the activities of their favorite club, the chance to get various rewards such as free tickets, club shirts, or NFT tokens. They are related to the club.
Fan Token Offering (FTO) is a process in which a portion of a club’s token is sold at a fixed price. This type of initial public offering is similar to other types of digital currency, except that it is repeated at different times and different prices and is only available on Socios.com. After the initial release, the tokens can be bought and sold in other digital currency exchanges such as Bainanceando this site.
What is a chiliz Chain?
Fan tokens are created on a licensed side-chain compatible with the Ethereum Virtual Machine (EVM) called the Chiliz Chain. The Chiliz chain does not require a transaction fee,e and sending a token fan is fast and cheap. Of course, to transfer the fan tokens, a transaction fee must be paid in the Ethereum network, which is usually a high amount.
Chiliz has many plans to upgrade the chain to establish itself as a leader in the Chinese blockchain space. The chiliz team focuses on multiplying irreplaceable tokens and using them in member teams’ games and sporting events and launching a digital sticking and monetization. Sticking is used in the stock proof consensus algorithm to ensure network security and record and verify transactions.
Famous tokens fan in chiliz bed
As mentioned in the WhatsApp section, fan tokens are not just for football clubs. On the chiliz platform, in addition to football clubs, various teams in the fields of “motorcycling,” “cricket,” “basketball,” “tennis,” “American football,” and “ice hockey” have created and presented their fan tokens to fans. Several fan tokens in computer games (Gaming) and combat have also been created in chiliz, which has attracted many users.
Among the most famous football clubs that have offered their support tokens in the context of Chile can be big clubs such as “Barcelona,” “Juventus,” “Paris Saint-Germain,” “Aes Milan,” and “Roma,” “Atletico Madrid,” “Manchester City.”, Mentioned “Arsenal” and the national teams of “Italy” and “Argentina.”
Famous and big NBA basketball clubs such as “Los Angeles Laker,” “Boston Celtics,” and “Detroit Pistons” have also created their fan tokens in Chile. The Davis Cup International Tennis Tournament and the UFC Fighting Tournament are other sports brands that users can use as their fan tokens. You can visit “Socios.com” to see other teams in different sports.
Binance Fan Token Making Platform
In addition to the Chiles project, a leader in the production of fan tokens, Binance Digital Currency has also established a token fan-making platform on the Binance smart chain. Almost all the chiliz fan tokens features are also available in Binance. Currently, the Binance platform alone has created a token of support for the three football teams,s “Santos Brazi,” “Porto Portuga,l,” and “Lazio Italy,” and has no entry in other sports.
Due to the huge number of users worldwide and the huge amount of capital it has gained over the years, in addition to making fan tokens, Binance has also sponsored these teams. This causes the network itself to grounds fan tokens on the platform. As the volume of investments made by Binance grows, Chiliz’s task is more difficult than ever to convince different teams to create fan tokens on its bed.
