Fan tokens are a huge hit recently! Here’s what you need to know to experience it yourself!

Nowadays, several brands from different industries are shifting towards digital innovations and creativity to engage with their fan base. Brands, especially sports clubs, have started to explore unique ideas and offers for fans with different levels of enthusiasm, to engage more with their idols. Fan tokens are one such example that has brought fans and their idols closer.

What are fan tokens?

Fan tokens are cryptocurrencies that permit the holders to access a variety of fan-related membership perks like voting on club decisions, receiving rewards, merchandise, design accessories, and gain other unique experiences. These tokens are generally used by sports clubs and music fan clubs to organize unique experiences for their fans, establish club leadership, and more. Just like Bitcoin and other cryptocurrencies, these tokens can also be traded on exchanges, and their values can fluctuate overnight. Fan tokens are created by a crypto platform called Socios, which allows fans to have access to exclusive club content.  These tokens can also be purchased with fiat currency. Certain football clubs are currently offering fan tokens to give their supporters and giving them the chance to unlock VIP rewards, such as meet and greet with their favorite football players, luxury seat booking at any game, and other exciting membership perks. The Chiliz token is one of the first most prominent fan tokens that has prompted an explosion of new other fan tokens like the Manchester City Fan Token, AC Milan Fan Token, and the Juventus Fan Token, to name a few.

How does this work?

Fans can purchase these digital tokens and trade them like regular cryptos. When the trading procedure starts, the price of a fan token is set by the seller. It is also subject to market change according to its popularity in the market. Once the users gain access to a set number of tokens, they can have access to several offers and affairs pertaining to their favorite clubs, like a club’s merch design, tour bus designs, match or concert locations, ticketing matters, and much more. These perks allow fans to feel more motivated and involved in the club. The advantages and offers add an extra level of pride and prestige among them, which likely boosts the growth of the brand or club. Unlike NFTs, fan tokens are ‘fungible’ or interchangeable, which means just like fiat money, these tokens can be exchanged for the luxury goods that are provided by the clubs. Additionally, they play an important role in tightening the relationship between one club with another.

Is it worth the investment?

Like the other cryptos, fan tokens are also volatile. The prices can shoot up and dive according to the supply and demand. Football fanatics who buy these tokens have also mentioned that their prices are influenced by the movements and activities of the team. Since the fluctuating prices of the tokens depend on the supporters’ emotions and engagements, it is quite evident that some football enthusiasts see fan tokens as a status symbol and a loyalty indicator instead of as a long-term investment.