Spirit labs
May 31, 2022

Should We Invest in Fan Tokens?

  • #Software Development
  • #Blockchain
  • Cryptocurrencies have been a hot topic and developed new investment opportunities so far. In the world of entertainment, the crypto craze has spawned a new kind of cryptocurrency: the Fan Token, which offers wider access to fan groups in the future.


    Join us as we learn about the meanings of Fan Tokens and how they work to create money!

    What are Fan Tokens?

    Fan Tokens are the new form of digital asset for fans having quite the same functionality as regular cryptocurrencies which can be utilized to purchase specific commodities. All transactions are recorded and secured on a public blockchain ledger. However, unlike any other cryptocurrencies, Fan Tokens can only be used to access the certain goods offered by your favorite organizations. Most familiar to everyone is probably sports or especially football teams.


    What makes Fan Tokens different from other NFTs is that they are fungible and can be exchanged in any transaction for products in the future. Therefore, they are just traditional currencies built on blockchain technology and authenticated by a blockchain network.

    How do Fan Tokens Work?

    Fans can purchase digital tokens and trade them like other cryptocurrencies. Holding Fan Tokens gives you the right to vote on official team polls to make particular fan-related decisions for the teams’ future. Token holders also benefit from a host of fan perks with exclusive promotions, rewards and experience clubs with VIP rewards, promotions, games, designs and access to a community of superfans.

     

    These benefits allow fans to feel more involved in the team they support, and they give an added level of pride and prestige because  fan tokens are expected to appreciate in value as the club grows. Thus, the more fan tokens you own, the more control you have over the club and the more commitment you show to your organization.

     

    In most cases, the price of a fan token is generally set by the seller. It may also fluctuate depending on market conditions and how popular the token is at the time.

    The potential of Fan Tokens

    A Fan Token or Sports Token can convert a fan into an investor, so they are no longer just spectators. These assets are not necessarily supported by the underlying technology of Bitcoin or Ethereum. The value of Fan Tokens is determined by how much fans value being a part of the club/team and gaining exclusive privileges.
     

    Like any cryptocurrency, fan tokens can be bought and sold for profit. In most cases, the price of a fan token is generally set by the seller. It may also fluctuate depending on market conditions and how popular the token is at the time. However, the main value of fan tokens, on the other hand, comes from the exclusive benefits that may be purchased with them. 
     

    Blockchain technology advancements have given industries new methods to better their interactions with customers. For fans who wish to have meaningful interactions with their favorite sports teams or music bands, fan tokens can be a beneficial investment. In other words, this is a win-win situation for businesses as firms can benefit from its teams and continuously generate cash flow thanks to fans' love.

    Here are a few Fan Tokens that you can do a research on and start examining:
     

    • KPOP Fan Token
    • Professional Fighters League Fan Token
    • Paris Saint-Germain Fan Token
    • FC Barcelona Fan Token
    • Galatasaray Fan Token

     

    However, today’s most well-known Fan Tokens belong to top football teams such as Paris Saint Germain, Manchester City, Atletico Madrid, FC Barcelona, and Juventus based on market capitalization. The market cap of Paris Saint Germain remains far ahead of the pack with £34 million, while those of the other teams surpass £15 million.

    How to Investment in Fan Tokens

    How to Buy Fan Tokens

    Chiliz (CHZ), a cryptocurrency intended to support blockchain solutions used by sports and entertainment businesses, is the sole way to buy Fan Tokens. Any major cryptocurrency exchange platform, such as Binance, Coinbase Pro, and Crypto.com, can be used to purchase CHZ.
     

    After purchasing CHZ, you must create an account on Chiliz' fan token network, Socios.comx. To buy your favorite fan tokens, load CHZ into your Socios account. After that, you'll be able to obtain fan rewards via the Socios website and app.

    How to Trade Fan Tokens

    Once acquiring Fan Tokens, they are yours to keep indefinitely, but you can exchange your Fan Tokens to other individuals on the Socios app if you want to give them up for any reason.

     

    The price of Fan Tokens changes with the markets, just like the price of other cryptocurrencies and tokens. Buyers pay what they believe is a fair price for Fan Tokens, while sellers select the price they are ready to take for their Fan Tokens. Fan Tokens might increase or decrease in value, but due to their limited availability and exclusive benefits, superfans are guaranteed to be in great demand. As a result, you need to do research on your favorite organization and forecast the future trend of the profitability of that token.

    How to Sell Fan Tokens

    When it comes to selling your Fan Tokens, you can trade them directly from your Socios app. Inside, you will find a list of your current Fan Tokens, just select the Fan Token and the number of units you wish to trade and tap the sell button. 

     

    The value of Fan Tokens will fluctuate over time, just like any other finite asset. The value of Fan Tokens for the most popular clubs is likely to rise over time. You may keep track of the current market value of your Fan Tokens holdings by using the Chiliz exchange at chiliz.net.

    Conclusion

    Fan tokens may be more of a buy-in to the specific perks that sports clubs can provide than an investment. However, like with any investment, it's always a good idea to consider the product's worth and potential solutions before making a decision. Investing in sports currencies is a new method for businesses and fans to benefit from the entertainment industry while maintaining strong bonds.

     

    Be with us for more investment opportunities in different types of blockchain industry, visit www.spiritlabs.co for further information. 
     

     

    REFERENCES:

    • Blog: Fan Tokens
    • Article: Are Fan Tokens Worth The Investment?
    • Article: The Future of Sports Currency: What are Fan Tokens and How do They Work?

     

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