A fan token is a digital asset that allows well-known brands to engage more deeply with their communities. This tool allows you to provide special privileges and opportunities to fans of sports clubs and organizations. The list of users of this technology is constantly growing.
What is a fan token
The fan token has the standard characteristics of a digital asset, but also has additional functions. It is tied to a specific brand (for example, a sports team), which is why such tokens are called “fan” - from the word “fan”
The main value of fan tokens is that their holders can receive various privileges from the organization that issued such assets:
participation in voting on issues of sports team development;
priority in purchasing tickets for events;
access to exclusive products and paraphernalia.
At the moment, dozens of fan tokens have already been launched, many of which are traded on the market along with other assets. A list of the most popular of them can be found on the Binance exchange.
Now this technology is used by both organizations representing team sports and individual athletes.
It should be taken into account that gaming teams, music agencies, fashion brands and other organizations can also create their own cryptocurrency. But such assets do not belong to fan tokens.
How do fan tokens work?
Like other crypto assets, fan tokens are created and operate on the basis of a specific blockchain, for example, BNB Chain, Ethereum, Chiliz and others.
To create such tokens, various smart contracts are used, of which the most popular are the following:
BEP20.
ERC20.
TRC20.
A special place in the list of fan tokens is occupied by those issued in the NFT format. Unlike fungible tokens, they have unique characteristics and therefore can be of great value.
Sports fans love being able to have a real say in the design of merchandise or the player of the month. The more tokens a fan has, the more opportunities he receives in interacting with the club. For example, his vote during such a vote may be more significant. As a result, the club that issued the token receives additional resources for development, and fans feel involved in the team’s activities.
Quotes of fan tokens depend on the popularity of the sports club and the desire of fans to interact with it. In theory, the more successful an organization is, the more valuable its token should be. But in real market conditions this concept turned out to be not very stable. When major digital currencies fall in value, users become distrustful of the entire cryptocurrency industry. Therefore, in a downward trend, the cost of fan tokens may also decrease.
However, fan tokens are an original idea that opens up many use cases within the digital economy. Thanks to such assets, brands attract those fans into the cryptocurrency community who were not previously interested in this industry.
How to purchase fan tokens
Now fan tokens can be purchased on cryptocurrency exchanges, as well as on specialized services. For example, many clubs cooperate with the Chiliz company, which helps issue ERC-20 tokens. It can sell assets through its own Socios platform or through third-party exchanges.
Binance works directly with many sports organizations. For this purpose, a special platform of fan tokens was launched, and if necessary, they can be launched based on the BNB Chain blockchain.
There are several ways for Binance clients to purchase these assets:
On the spot market, fan tokens are included in the list of trading instruments.
Fiat balance allows you to buy any cryptocurrency using a bank card.
The exclusive Fan Token Launchpad service provides early access to new promising projects.
To freely use the features of the Binance Fan Token platform, you need to pass verification.
Popular fan tokens
Below is a list of fan tokens from the best teams in the world. They have a high market capitalization and provide their holders with various privileges.
Santos FC Fan Token (SANTOS)
This is a joint project between Binance and the Brazilian football club Santos. The token was created and runs on the BNB Chain blockchain.
Holders of this asset receive the following opportunities:
participation in voting to optimize the club’s activities;
receive rewards in the form of unique NFTs and items for digital collections;
purchasing tickets and autographed merchandise;
payment of membership fees, individual greetings and personal meetings with football players;
donations for the team or the best athletes.
Through all of these opportunities, Santos FC improves its relationship with the community.
Lazio Fan Token (LAZIO)
This is the cryptocurrency of one of the most popular Italian football clubs S.S. Lazio. It is powered by BNB Chain and is available on the Binance Fan Token platform.
Owners of this cryptocurrency can:
buy and sell club NFTs;
take part in voting;
trade virtual items from the list of special collections;
join the gamification process.
Alpine F1 Team Fan Token (ALPINE)
In February 2022, Binance entered into a partnership agreement with the BWT Alpine F1 Team and Alpine Esports. As a result, the first fan token of a Formula 1 racing team was launched.
Thanks to the introduction of the ALPINE token, racing fans have new ways to interact with their idols:
participation in voting on various issues related to the team’s activities;
access to unique NFT collections;
purchasing goods with club symbols;
opportunity to attend meetings with athletes.
In the future, it is planned to fully integrate the token into the Binance ecosystem.
FC Porto Fan Token (PORTO)
FC Porto is one of the top three football teams in Portugal. This club released its own fan token together with Binance.
PORTO has the following benefits for fans:
the right to participate in voting on the Binance Fan Tokens platform;
subscribing to promotional offers and earning loyalty points;
receiving NFT items;
purchase of fan products, match tickets and other goods in the FC Porto e-commerce system.
The introduction of this innovative technology was an important step in the development of FC Porto. Club officials said they “simply could not pass up the fan token universe and miss out on so much opportunity to strengthen emotional connections with fans.”
Paris Saint-Germain Fan Token (PSG)
PSG is the token of the French football club Paris Saint-Germain. It runs on the Chiliz blockchain and is traded on the Binance exchange, as well as in the socios.com ecosystem.
The list of privileges for owners of this asset contains the following items:
discounts on club paraphernalia;
participation in voting that takes place throughout the season;
financial rewards in CHZ and PSG tokens for activity.
Manchester City Fan Token (CITY)
This is a fan token for Manchester City Football Club. It runs on the Chiliz blockchain and is released on the socios.com platform.
Holders of this cryptocurrency have the opportunity to vote using a mobile application.
FC Barcelona Fan Token (BAR)
The token is powered by Chiliz. You can buy it on the Socios and Binance platforms.
Barcelona Club is focused on implementing a new development strategy. It combines the use of digital and commercial tools. The management believes that working together with partners from the world of cryptocurrencies will help the team get closer to fans from different regions.
Juventus Fan Token (JUV)
The token of the Italian football club Juventus is powered by Chiliz. JUV holders receive the following benefits:
participation in voting;
receiving official bonuses from a sports club;
access to the list of VIP services.
Voting has already been held to determine the design of the team's bus, T-shirts and pennant. The fans also chose the club's winning song.
Atletico De Madrid Fan Token (ATM)
This is a fan token of the Madrid football club Atletico De Madrid. It is powered by Chiliz and can be purchased through the socios.com and Binance platforms.
The club's management is introducing an innovative form of interaction with fans around the world. In this way, Atletico De Madrid creates the image of a modern sports organization that strives to use new technologies.
Galatasaray Fan Token (GAL)
Fan token of the Galatasaray football club from Turkey. Powered by Chiliz.
The club's management states that GAL was created as a tool to improve the relationship between the sports team and fans. Token holders can take part in voting on various issues that relate to the development of the club.
AS Roma Fan Token (ASR)
This is a fan token of the Italian football club AS Roma, which is powered by Chiliz.
ASR was created for high-quality interaction between fans and a football team. Token holders can vote for the implementation of various ideas aimed at developing the club.
Prospects
At the moment, fan tokens are mainly of interest to fans of popular sports clubs. It is likely that more organizations will use them over time.
Fans have the opportunity to take part in the life of their favorite team and receive special privileges. Sports clubs have also benefited as they are able to expand their communities through the adoption of crypto technologies. In addition, selling their own tokens provides them with additional income.
Over time, these assets may become significantly more expensive. But their cost is influenced by a large number of factors. Therefore, now fan tokens cannot be called a stable investment instrument. However, they may well become an additional way to diversify your portfolio.
