Cryptocurrency is changing the way we buy and sell commodities. It is taking over music, film, theatre, and pretty much any industry that relies on fandom support.
Speaking of fandom support, sports is the next industry about to be revolutionized by a form of cryptocurrency called crypto fan tokens.
But what exactly are crypto fan tokens, where do they come from, and how do they work as currency? Keep reading to find out.
What Is a Crypto Fan Token?
A crypto fan token is a form of cryptocurrency that allows its holder access to a range of sports club-specific membership perks, including voting rights on club matters, club rewards, and experiences.
Unlike non-fungible tokens (NFTs) in music and digital art, crypto fan tokens are fungible. This means that the tokens can be exchanged for sports club merchandise and other VIP experiences.
Crypto Fan Tokens and Blockchain
Like cryptocurrency and NFTs, crypto fan tokens are built on the blockchain. However, they are relatively new crypto assets.
It is unsure when they made their first appearance in the crypto scene. But they started gaining attention in 2020 after football club FC Barcelona’s crypto fan token launch to the club’s supporters.
They have been met with explosive growth ever since.
Where Can You Buy Crypto Fan Tokens?
Crypto fan tokens are mainly purchased on the crypto exchange Socios. However, before they are made available, sports clubs must first make a fan token offering (FTO).
An FTO is similar to an initial coin offering (ICO) in the crypto trade. The fan token’s distributor announces the start and end date of when the tokens will be distributed, plus their opening price.
When the start date arrives, fans can buy the tokens either with money or existing crypto coins that they already own on the exchange.
How Do Crypto Fan Tokens Work?
Crypto fan tokens can be purchased and traded just like any other cryptocurrency. When trading, the price of a fan token is set by the seller. It is also subject to change according to market movement and other factors.
Once users own a certain amount of fan tokens, they are granted the right to vote on a range of matters concerning their favorite club. Club matters that fans can vote and decide on are largely determined by the club, but they generally include:
- A club’s next kit design.
- Tour bus design.
- Match locations.
- Winner of the ‘Man of The Match’ category.
Perks like these, and many more, allow a fan to feel more involved in the club they support.
Crypto fan tokens create an exclusive community of dedicated fans on the trading platforms that they operate, and many also run a lucrative rewards system. The more tokens a fan owns, the higher they move on the platform’s fan ladder. Eventually, they can unlock the biggest VIP benefits.
How Crypto Fan Tokens Are Changing the Sports Industry
Many are working with crypto exchanges and blockchain companies to launch crypto fan tokens to bring clubs and players closer to their fans. Some sports that offer fan tokens include:
- Football: Some of the world’s biggest football clubs are already on board the crypto fan token hype train. A-list clubs FC Barcelona, AC Milan, Paris Saint-German, and Juventus already offer them to their most devoted fans.
- Wrestling: The UFC is offering crypto fan tokens to its fans all around the world. This is to foster a deeper connection between fans and the UFC and reward them for “their passion for the sport,” said an executive from the UFC.
- Racing: Aston Martin and Alfa Romeo are the first teams in F1 to offer fan tokens.
Crypto Fan Tokens: Reshaping How Fans Interact
Crypto fan tokens have become a new and innovative way for sports clubs to monetize fan support.
Considering how much clout crypto fan tokens are getting, it’s only a matter of time that they make their way into the music industry. And who knows? You may soon find yourself voting on preferred tour dates to see your favorite artist.