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What Are Fan Tokens? Crypto Assets That Give Fans a Voice

What Are Fan Tokens? Crypto Assets That Give Fans a Voice

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The relationship between fans and the object of their affection – be it a sports team or a band – has traditionally been a one-way street. Fans buy tickets and merchandise, the team or band rakes in cash.

Now a new type cryptocurrencyfan tag, promises to change the dynamic of the relationship.

What are Fan IDs?

Fan Tokens are a type of cryptocurrency designed to provide membership benefits to fans of sports teams, bands, and other groups. Holders of fan badges are often entitled to membership benefits such as access to exclusive content, rewards, experiences and voting rights in club decisions.

Fans have something for everyone. For fans, it is an opportunity to determine in some (often trivial and legally non-binding) way the future of their favorite sports team or pop star and to speculate on their success on the web3 market. For a sports team or a pop star, that’s free money, baby!

These tokens are everywhere, from sports to soccer to NFL to cricket. Bands like Portugal. The man also tries them.

The fandom economy is as strange as it is volatile, but for some famous people or organizations, it’s proven to be a lucrative revenue stream that keeps their fans around.

Did you know?

Be included[In]According to Crypto Research, soccer tokens generated $3.5 billion in sales in March 2022 alone.

How do fan IDs work?

The basic idea is that an organization, such as a sports team, mints a lot of fungible tokens (as opposed to non-fungible tokens, or NFTs), then sell or distribute them to fans or speculators. These tokens are often sold on secondary markets, just like cryptocurrencies such as Bitcoin or Ethereummeaning they are owned by traditional market forces.

Fan IDs usually give holders limited administrative rights. For example, the Paris St. Germain fan badge gives its holders access to exclusive VIP experiences and votes on the cover of the FIFA 22 fan edition of the soccer game. The fans also chose a message for the team’s dressing room for the May 2021 match: “Together we can, together we will! Let’s take another step towards glory and victory.”

What is Sosios?

A platform called Socios, created by a company called Chiliz, dominates the fan tag market. That’s because most of them are based on soccer, a sport where the platform has secured deals with top teams, including:

  • FC Barcelona. The dressing room mural and the captain’s armband (which read “NO CHILD OFFSIDE”) have been picked up by fans. In August 2022, Chiliz bought a $100 million stake in FC Barcelona’s digital studio.
  • Inter Milan. Fans voted on the first new goal celebration song in 8 years, chose the team’s official bus and weighed in on the jersey design.
  • Manchester City. Fans chose the image to hang in the players’ area at Wembley Stadium and voted for the editorial about a memorable Man City season.

By participating in many of these surveys, fans will be entered into sweepstakes to win prizes such as VIP access to teams and exclusive offers.

Socios isn’t the only game in town; crypto exchange Binance launched its own fan gaming platform, imaginatively known as Binance Fan Tokens, in October 2021. It hosts tokens for Alpine F1 Team, SS Lazio, FC Porto and Santos FC.

The market value of fan brands is modest. In September 2022, SS Lazio had a market value of $66 million, Alpine F1 Team had a market value of $50 million; and PSG with a market cap of $29 million. By comparison, Bitcoin’s market cap is over $380 billion and Ethereum’s is $200 billion.

Fans are not limited to the world of sports. Platforms like Rally and Roll have long tried to popularize the idea of ​​a social token, where even fans of pop stars and influencers can influence their lives. They have yet to rise in a big way; the largest is perhaps Rally’s administrative code, which has a market value of about $140 million.

This may be because the benefits they provide, such as voting on decisions about the band or sports team, are relatively trivial. Decentralized finance administrative codes (DeFi) projects, on the other hand, give holders the opportunity to play a leading role in managing their own protocols.

Hold enough of these governance tokens and you can control billions of dollars in coffers – and use your control to exert influence beyond the limited supply of fan tokens. It, in turn, ​​​​commands value; UNI, decentralized exchange administrative code (DEX) Remove the switchwith a market capitalization of $4.9 billion.

How to buy a fan badge

Still want to weigh in on the inspirational motto displayed in your favorite team’s locker room? To enter, you must purchase a fan ID.

The Fan Token Purchase process is similar to purchasing any other cryptocurrency. The easiest way to buy them is a crypto exchange or a brokerage like Binance.

On Binance, for example, you can buy a PSG fan ID with three currencies: USDT and BUSD. stable coinsor Bitcoin. You need to create an account on the exchange and then place a “spot order” for a fan token using any token pair supported by the platform. Other exchanges support different pairings.

You can also buy fan tokens from the Socios app using Chiliz (CHZ), the original token of Socios’ parent company. You can also buy CHZ in-app.

Once you’ve purchased your fan token, you’ll receive it in your Web3 wallet just like any other cryptocurrency.

If your fan ID comes from Socios, the market leader for sports fans, you can go to the Socios website or app to put your tokens to work. For example, you can use these tokens to earn rewards on the platform or participate in surveys. Or you can sell them on a cryptocurrency exchange if their value goes up.

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