Fan Token: Development potential and inspirational mission

Prologue

The World Cup is now approaching, and this year we will have a completely different point. Everyone is expecting and eagerly looking forward to a new World Cup season, but more than that, with the help of technology, the sports fan community will have a whole new way of interacting to show their love. his love with sports and clubs.

Along with the development of the current financial system, the way we interact and perceive value is also gradually changing. The proliferation of media and social media channels has created a hyper-connected network, removing the barrier of distance.

According to Chiliz and Socios CEO Alexandre Dreyfus:

“99.9% of fans are not in the stadium.”

Information can now be shared and accessed from almost anywhere. But there are still a number of other aspects such as the ability to participate, express opinions, show support, and vote for your favorite club. This is very noticeable. Previously, fans only had the opportunity to show their love through social channels with likes and comments. This has become so pervasive that metrics like followers and engagement are now considered very important aspects of a brand.

Fan tokens represent innovation through a combination of blockchain and the art of interacting with fans. Similar to brand currencies, Fan tokens help strengthen the relationships that exist between brands/clubs and their fan communities, allowing for a stronger level of engagement and connection. ever.

What is a fan token?

Fan tokens are a form of utility tokens that individuals and organizations can use to enhance the way they interact with fans and vice versa. Fan tokens can be seen as a blockchain-based asset, representing the next stage in bringing blockchain closer to the masses, supporting direct connections, and opening up several new forms of interaction. enabling fans to be more involved in the activities of the club they love.

This is a new way for fans to show their support for their favorite teams and athletes in exchange for truly valuable rewards.

For example, if you're a huge LeBron James fan and want to see him win the NBA championship this season, you can create content about LeBron James and spread the love to other fans as well. Get excited about him — and then earn tokens when people interact with it!

This type of engagement is usually reserved for professional content creators who know how to make content go viral (and charge a hefty fee for it). But now, with Fan token support, it seems to be “ready” for everyone who wants to participate in this new economy — and get rewarded for their work.

Today, there are more than 2 billion sports fans worldwide and they are ready to make money. The question is, how do they get involved in this monetization process? How to give them a reason to care about cryptocurrency?

Some argue that the only thing more valuable than a fan is the fan's financial potential.

The power of fan community with Fan token

Voting right

The official Juventus fan token allows fans to interact with the organization by voting through the platform – Socios.com, which represents the true voices and desires of the global fan community.

For the first time, fans can use their Fan Tokens to vote on club decisions.

Using blockchain technology, the Series A champions are seeking fan input by asking them to vote on a new goal celebratory song.

Over the past eight years, every goal Juventus has scored at the Allianz Stadium has been celebrated to the tune of "Chelsea Dagger". The Fratellis hit has become iconic to the club, but now, with the help of Socios.com, it's time for a change. Now, whenever Juventus scores, “Song 2” will resound with the fans at the stadium,  a decision made through blockchain voting, by the holders of the Juventus JUV Fan token.

Fan tokens are already being adopted by some of the top teams, including Manchester City, AC Milan and Juventus to further engage their fanbase, allowing fans to have a say in decisions. Designs like alternative logo designs, song playlists and some merchandise.

Exclusive access

Fan tokens can be used to grant access, creating a sense of exclusivity for the owner. The fan token acts like a “ticket,” providing access to a private community of fans who share a passion for the team and the sport. The more tokens a fan holds, the more power they have in their votes (fan ranking), the higher tier will unlock different perks respectively until they gain access to the benefits. Biggest VIP benefits from the club.

As a result, clubs can use Fan tokens as part of their fan engagement strategy to further build global fan communities, especially in Asia where fan communities Football fans are experiencing incredible growth but are experiencing geographical barriers, little connection with the clubs they support.

Means of exchange for memorabilia and collectibles in the form of NFT

If you are a sports fan looking to own an unforgettable moment or memorabilia, then NFT could be an attractive option and clubs can use fan tokens as a means of exchange. exchange for these NFTs. According to a Deloitte Global report  for sports media, by the end of 2022, 4 million to 5 million sports fans globally will buy or be given an NFT sports collection.

The popularity of NFT has grown rapidly over the past few years and is expected to continue to grow in the future. According to a study by Emarketer , NFT sales are expected to reach $6 billion by 2022 and it is estimated that more than 700 million people will use NFT by 2025.

The use of NFT has the potential to revolutionize the way sports teams interact with fans and sell their merchandise. The ability for fans to buy their favorite players' jerseys or other memorabilia using fan tokens could make transactions easier and faster than ever.

New source of revenue for clubs

Clubs will earn substantial amounts of money when the token is first sold – also known as the “Fan Token Offering” (FTO). When Barcelona launched its first FTO last June, the BAR token sold out in less than two hours, generating an immediate $1.3 million for the financially troubled La Liga team.

Note when investing Fan token

Fan token was born for sports fans. However, investors can still use fan tokens for speculative purposes. Let's say Lazio intends to sign a superstar player; this may affect the price increase of LAZIO. Conversely, if the club is underperforming, it could be a reason for the token's price decline.

According to Chiliz and Socios CEO Alexandre Dreyfus, the things that fans can vote on will be mostly entertaining, meaning fans won't be able to vote on who will be the next coach or which player. that the club should hire. In addition, there is a limit to the number of votes an individual can vote to avoid the situation where the "Whale" owns a large amount of the supply and affects the fairness among the fan community.

Fan tokens still carry all the risks of cryptocurrencies. First of all, it is important to remember that Fan tokens can be hacked as well as subject to the overall volatility of the crypto market. Second, even if you have a good feeling about what's going on with the team, there's always the possibility that things could go wrong and your assets could lose value.

For example

When news of the possibility of Messi leaving Barcelona for PSG was leaked, the total volume of PSG tokens traded in Brazil was even larger than Bitcoin. The market is driven by emotions and whenever something happens in the world of football, there will be corresponding price fluctuations and leading to short-term growth of this Fan token.

So, before purchasing any Fan tokens, make sure that you have done your research thoroughly and understand the risks involved. You can refer to some articles from Ancient8 to get the more necessary information.

Epilogue

How much is a fan worth? The answer will depend on how you view this fan.

If you think they're just people showing up to watch the team play, it's probably not worth it. But if you consider them the lifeblood of the brand – the people who help promote what the club does, the people who share their love of the club with others, and the people who make the club good by providing financial support – they deserve everything.

That's why Fan tokens are an important next step for clubs looking to build strong relationships with the people who matter most: their fans. Fan tokens will be a new era in how clubs interact with fans, providing the tools needed to connect directly with their most passionate supporters, creating new experiences for the community. co-interact while watching the match or enjoying other content related to their favorite team.

Oct 28, 2022