What Are Fan Tokens? Are They Worth Investment? - Fan tokens were launched towards the fans of sports clubs, especially football.

    Sports is a potential market and always a hot topic that attracts a lot of fans around the world. Big players in both markets, therefore, decided to cooperate with each other to develop their brands and fan tokens are the typical product.

    What are fan tokens?

    Fan tokens are cryptocurrencies that allow token holders to access fan-related membership perks such as voting on club decisions or unique experiences. However, fan token holders can only interfere in small decisions that don’t affect the operation of the club. The clubs which can create fan tokens are usually famous football clubs in the world like Manchester City, AC Milan, Barcelona, and more.

    These tokens can be bought and traded like any other cryptocurrencies. The price of fan tokens may also fluctuate according to market movements and other factors.

    How fan tokens work?

    Fan tokens can be generated by several platforms such as Socios, Chilliz and they will allow fans to have access to their club’s exclusive content. Tokens can also be bought/sold easily with fiat currency.

    Socios/Chilliz are the leading platforms of fan tokens in the crypto market which has fueled the explosion of fan tokens like Manchester City, AC Milan or Santos.

    Launch platform is currently the most popular launch platform and Chiliz – a DEX exchange dedicated to fan tokens. Developed by Socios, Chiliz issued CHZ, a token that serves as native token for both Chiliz and Socios. In addition, Binance has officially launched the Binance Fan Token platform where tokens are listed and distributed between participating Binance users.

    Growth potential

    Like other cryptocurrencies, fan tokens also increase and decrease in price based on market fluctuations. The token price is also affected by some factors related to the clubs such as transferring new players, changing coaches, winning championship cups, etc. However, all fan tokens have dropped sharply compared to their price at IDO. So if you want to invest in fan tokens, you need to pay attention to the overall market trend. The upcoming World Cup will also have a great impact on fan tokens.

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