- In terms of how sports organizations interact with their fan base, fan tokens are a game changer.
- Fan tokens make it simple to introduce new users to the cryptocurrency world.
- The potential of this market has been recognized by Phemex, a global cryptocurrency and derivatives exchange, which now offers new fan tokens on its platform.
Sports teams can further integrate fans into the team by issuing and selling fan tokens, which are utility tokens. These blockchain-based tokens are similar to other loyalty programs but now also feature cryptocurrencies.
Fans can access a variety of membership benefits by accumulating tokens, including discounted and exclusive merchandise and tickets, entry into contests, and access to VIP experiences.
Why Are Fan Tokens Required by Sports Teams?
to give supporters a voice and give them a sense of ownership over their preferred sports team. Supporters can vote on club matters thanks to fan tokens.
In other words, through the use of cryptocurrencies, sports teams have been able to increase their level of outreach and engagement with fans while also managing to develop distinctive fan experiences.
Through a mobile app, supporters can now gather tokens and cast votes on important team decisions (such as who was the player of the week or the design of the team’s uniforms) by collecting tokens.
The greater a fan’s voting influence over club decisions, the more tokens he possesses. Additionally, that fan will benefit from a higher clout score, which will advance them along different reward tiers.
Sports fans are the main audience for these tokens. These tokens can, however, be used by traders for speculation. Suppose your team has acquired a star player; this could cause the token’s price to increase. On the other hand, if the club is struggling, that might be a good reason to sell the token.
Fan tokens also continue to carry all the dangers associated with conventional cryptocurrencies.
Before purchasing, one should be aware that they are subject to regulatory restrictions, market volatility, and hacks.
Where can I purchase and utilize my preferred fan tokens?
Numerous fan tokens, including those for F.C. Porto ($PORTO), S.S. Lazio ($LAZIO), and Alpine F1 ($ALPINE), can be traded on exchanges like Phemex.
The most prominent use of these tokens to gauge and reward fan loyalty is by football clubs.
Socios, a platform that began by giving away fan tokens in the form of a GPS-based Pokémon Go-like hunting game, has partnered with about 60 major football clubs.
With the help of the Socios app, sports fans can communicate with other followers and their favorite teams, as well as take part in fan-driven decisions.
The Chiliz network, which houses the Socios platform, also provides its own governance token, $CHZ.
Despite the fact that anyone with knowledge of software development can create a cryptocurrency from nothing, Chiliz led the way in the fan token industry by creating the majority of the current official fan tokens.
Fan tokens can only be accessed through the Socios app by exchanging them for $CHZ. In exchanges like Phemex, users can freely trade $CHZ and other fan tokens.
In an effort to introduce their general audience to the world of cryptocurrencies, many of these sports organizations have heavily promoted fan tokens on official apparel and stadium banners over the past two years.
Maxi Gomez of Valencia C.F. sporting the shirt sponsored by $VCF Fan Token during a game.
To give one example of how fan tokens can be used to influence club decisions, Sevilla F.C. ($SEVILLA) is holding a vote to decide which charity will be featured on their uniforms in the upcoming season. Additionally, the Austin Grand Prix helmet design for Lance Stroll was put to a vote by the Aston Martin ($AM) team.
In essence, the main goal of fan tokens is to forge a close bond between a sporting organization and its fans, enabling clubs to profit from that bond.
Furthermore, the limited demand for these coins may have an effect on supply, making them a risky and unstable investment to hold over time.
The best course of action for a sports fan is to view fan tokens as an additional way to support their favorite teams. either way. Up or down Your team will always be them. your tokens, too.