Fan tokens are cryptocurrencies that permit their holders to access a variety of fan-related membership perks like voting on club decisions, rewards, merchandise designs, and unique experiences.
Unlike NFTs, fan tokens are completely “fungible” or interchangeable. This means that, just like fiat or cash, the tokens can be exchanged for sports club merchandise, VIP experiences, and more. They receive their worth from how much fans value being able to participate in the club and earn unique benefits.
Fans can purchase digital tokens and trade them like other cryptocurrencies. When trading, the price of a fan token is generally set by the seller. It is also subject to change according to market movement and how popular the token is at the time.
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SEE ALSO: English Premier League Teams Make Over $200 Million in Fan Tokens
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Once users gain access to a set amount of fan tokens, they are granted the right to vote on a variety of matters concerning their favorite club. These matters that fans can vote on largely depend on the club, but they could include:
- A club’s merchandise design
- Tour bus designs
- Ticketing matters
- Match locations
- MVP categories
- Stadium playlist
Chiliz is generally responsible for the birth of the fan token. The organization describes itself as the world’s leading blockchain fintech provider for sports & entertainment.
$CHZ is the native ERC20 utility token on the Chiliz network that is secured by the Ethereum blockchain.
The token also serves as the digital currency for the Chiliz and Socios.com platform that Chilliz developed for fans to engage with their favorite teams and clubs. The Chilliz token also has its own blockchain.
The platform has secured partnerships with over 40 sporting organizations across the world, including top European football clubs such as:
- Manchester City
- Arsenal
- Barcelona
- PSG
- Juventus
The Paris Saint Germain fan token is the best performing token according to CryptoSlam, with all time sales volume of $10,315,599,820 as of this writing
Just days before superstar, Lionel Messi, signed for the Paris-based club, it said that trading volumes of the token exceeded $1.2 billion with new sales generated the club about $35 million.
Manchester City token is the second with $22,440,994 in 24 hr sales volume, with a $22.93 price. The next three tokens are for FC Barcelona, AC Milan, and Galatasaray.
Some fan tokens are available on popular centralized exchanges, but some may not be certified or large enough to be listed yet. In this case, fan tokens could only be available for trading or swapping on decentralized exchanges (DEX) like Uniswap and PancakeSwap.
You will need to have a cryptocurrency to trade for fan tokens on DEXs.
The Chilliz token is available to purchase on major exchanges such as Binance.
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RECOMMENDED READING: 2022: The Year of GameFi?
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