The way we buy and trade commodities are changing as a result of cryptocurrency. It is consuming the music, film, and theatrical industries, as well as pretty much any other industry that relies on fan support.
Speaking of fan support, sports is the next area set to be transformed by a new type of cryptocurrency known as crypto fan tokens.
However, what are crypto fan tokens, where did they originate, and how do they function as currency? Continue reading to learn more.
What Is a Fan Token in Cryptocurrency?
A crypto fan token is a type of cryptocurrency that entitles its owner to a variety of sports club-specific membership benefits, such as voting rights, club incentives, and experiences.
Crypto fan tokens, in contrast to non-fungible tokens (NFTs) used in music and digital art, are fungible. This means that the tokens can be used for items from sports clubs and other VIP experiences.
Blockchain Technology and Cryptocurrency Fan Tokens
Crypto fan tokens, like cryptocurrencies and NFTs, are constructed on the blockchain. They are, nevertheless, relatively young crypto assets.
It is unknown when they first entered the crypto arena. However, they gained traction in 2020 following the issuance of FC Barcelona’s crypto fan token to the club’s followers.
They have grown at a breakneck pace ever since.
Where Can Crypto Fan Tokens Be Purchased?
Crypto fan tokens are mostly acquired through the cryptocurrency exchange Socios. Before they can be made available, however, sports clubs must conduct a fan token offering (FTO).
In the cryptocurrency world, an FTO is comparable to an initial coin offering (ICO). The distributor of the fan token announces the start and finish dates of the token distribution, as well as the opening price.
When the launch day approaches, supporters can purchase the tokens using either cash or existing crypto coins on the exchange.
How Does Crypto Fan Token Work?
Crypto fan tokens, like any other cryptocurrency, may be purchased and sold. When trading, the seller determines the price of a fan token. Additionally, it is susceptible to alter based on market conditions and other reasons.
Once a user has accumulated a specific number of fan tokens, they are offered the ability to vote on a variety of club-related issues. The issues on which fans can vote and decide are primarily set by the club, however, they typically include the following:
- The next kit design for a club.
- Design of tour buses.
- Contrast locales.
- Winner in the category ‘Man of The Match’.
These and numerous more perks help a fan feel more connected to the club they support.
Crypto fan tokens establish an exclusive network of devoted supporters on the trading platforms on which they are listed, and many also have a lucrative reward scheme. The more tokens a fan possesses, the higher up the platform’s fan ladder they climb. They will eventually be able to access the most valuable VIP privileges.
The Impact of Crypto Fan Tokens on the Sports Industry
Numerous teams and players are collaborating with cryptocurrency exchanges and blockchain businesses to produce crypto fan tokens that will connect them to their followers. Several sports offer fan tokens, including the following:
- Football: Several of the world’s largest football clubs have already jumped on the crypto fan token bandwagon. They are already available to the most ardent fans of A-list clubs FC Barcelona, AC Milan, Paris Saint-Germain, and Juventus.
- Wrestling: The UFC is now offering cryptocurrency fan tokens to its global fan base. This is to strengthen the bond between fans and the UFC and to reward them for “their enthusiasm for the sport,” according to a UFC executive.
- Racing: Aston Martin and Alfa Romeo are the first Formula One teams to provide fan tokens.
Crypto fan tokens have emerged as a novel and inventive method for sports clubs to monetize their fan base.
Given the growing popularity of crypto fan tokens, it’s just a matter of time until they make their way into the music industry. Additionally, who knows? You may soon find yourself voting
for your favorite artist’s chosen tour dates.