Cryptocurrencies and blockchain technology are developing rapidly, reaching into traditional fields, including sport. Dexsport is one of the most progressive examples of such cooperation, but there are many others, like fan tokens.

Fan tokens are cryptocurrencies that allow their owners to vote for minor decisions related to sports clubs, to receive rewards and the chance for unique experiences, such as meet and greets with the fans. They can be used by any other organisation to engage the community through digital assets.

Fan tokens utility

These tokens give the fans a chance to influence the official decisions of their favourite teams. For example, fan token holders can vote on what uniform the team wears. They can also be rewarded with match tickets or clothing.

There are unlimited possibilities. The concept is still fresh, and the options are just being created. For instance, fan token holders can unlock VIP rewards, get access to exclusive promotions, play games, get recognition from super fans, and that’s just the start of the market.

However, we should not forget that sport is also business, and the first reason to create fan tokens is to make a profit. Teams are starting to realise that there might be a lucrative potential in creating fan tokens. Eventually, it can be profitable for both teams and their supporters, but only if the investment is rational and well thought out.

How do they work

There are several big platforms where fan tokens can be bought, and Socios is currently the leading one.

Teams enter into agreements with such companies for the release of the fan tokens on the blockchain. Once the agreement is made, the issuance of Fan Tokens (FTOs) is scheduled. People can buy these fan tokens at a fixed price during the FTO, and then the prices of the fan tokens can rise and fall depending on demand, just like other cryptocurrencies. If a team qualifies for a championship, its token may be in demand, and conversely, if a team performs poorly, the value of its token may drop.

Most popular fan tokens by capitalization

1️⃣ $LAZIO ($67.19M)

2️⃣ $SANTOS ($60.13M)

3️⃣ $PORTO ($59.92M)

4️⃣ $ALPINO ($49.21M)

5️⃣ $PSG ($29.05M)

6️⃣ $BAR ($27.20M)

7️⃣ $CITY ($24.05M)

8️⃣ $ACM ($13.80M)

9️⃣ $INTER ($10.39M)

🔟 $APM ($10.08M)

Conclusion

Buying fan tokens is not a type of investment; it is more comparable with betting, as the price of the asset depends on the performance of the sports team. Fan Tokens are useful tokens whose function is to provide access to a digital service offered by sports clubs. There is a secondary market where Fan Tokens can be bought and sold, but Fan Tokens should not be used for investment. If you invest, you risk losing money.