Fan tokens for sports teams are gaining popularity. What is the new trend in the crypto industry?
Major football clubs in several leagues have made quite a lot of money by launching “fan” tokens. There are 24 teams in European leagues that have launched or plan to launch their own fan tokens. Eight of the aforementioned clubs play in the English Premier League, which is considered one of the most prestigious among football fans. Naturally, the world’s most popular cryptocurrency exchanges and trading platforms are associated with it. We tell you more about what’s going on.
Fan tokens are digital assets that grant holders access to a number of privileges. These include voting for club decisions, merchandise design, awards, as well as other opportunities to interact with sports teams and their representatives.
It should be noted that the launch of fan tokens is happening even now, with all this being accompanied by partnerships between cryptocurrency platforms and clubs. For example, Portuguese team Porto were among the latest in line to launch a token, sponsored by the Binance exchange. As a result, the platform’s logo can now be seen during the team’s games.
In particular, here is the team’s uniform worn by Binance’s head of exchange Changpen Zhao.
Changpen Zhao in his FC Porto uniform
A similar situation has happened to Italian club Lazio. Its players now also wear uniforms with the Binance logo.
Lazio players wearing uniforms with the Binance logo
As a result, this trend not only plays into the hands of football teams, but at the same time significantly increases the popularity of the cryptocurrency industry.
Why buy cryptocurrencies
The centre of the popular trend is Socios, a platform that specialises in launching fan tokens. According to Decrypt, the volume of token transactions processed on Socios reaches $300 million. The most “profitable” football clubs from the statistics were Lazio, Manchester City, Porto and Santos.
Top 5 fan tokens by capitalisation
Find more information about all fan tokens on a special FanMarcetCap platform. According to its data, the capitalisation of the respective coins already exceeds the $417 million mark at the time of writing. Since mid-June 2021, the figure has increased by almost 60.4 percent, which means that sports fans are not passing this trend.
Admittedly, not all dedicated football fans share the love of fan tokens. Here’s what sports journalist Martin Kalladin recently had to say about it. The expert’s remarks are quoted by Decrypt.
Some people may make a lot of money from it, but it’s almost certainly not the most common street football fans.
That is, the expert hints that a lot of capital is needed to effectively connect with this niche. This argument seems strange, as the value of the tokens is relatively low.
We checked the latest data: today the token of French club PSG is valued at $15.3, while the token of Barcelona is valued at only $9.1. For clarity, here are graphs of the respective coins over the last 180 days.
This is what the PSG token exchange rate graph looks like.
PSG fan token exchange rate graph
And here is the corresponding data for the Barcelona token.
Barcelona fan token exchange rate graph
Nevertheless, fan tokens open up a whole new range of opportunities for football clubs to directly engage with their audiences. Their active involvement in the cryptosphere will create more reasons for cryptocurrency adoption to grow globally.
Socios app
We believe that sports clubs and events are just one small part of the potential of decentralised assets. Obviously, in the future, coins will be used in many more sports and at the same time for more diverse activities. And that means that the number of users of digital coins will grow in any case.
You can find out about other interesting news in our millionaires’ cryptochat. There we will talk about other topics related to the world of decentralisation and blockchain.
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