Fan Tokens: The future of sports currency: What are fan tokens and how do they work?

As an avid sports fan or enthusiast, you may find yourself trying new ways to get a first-hand experience with your favorite sports teams or clubs. Perhaps this is why so many fans participate in fantasy sports, watching matches in a bar, club or restaurant so that they can cheer on their favorite teams together. The latest upgrade on this front has been fan tokens (FTs), which allow holders to embrace the sport in an exceptional way.

These codes provide fans with exclusive access to sports content, a close association with the respective team or club as well as financial rewards. These tokens are a form of cryptocurrency. But unlike virtual currencies, fan tokens require the use of third-party blockchain technology.

What is a sports currency?

Fan tokens, or sports cryptocurrencies, are digital assets that enable sports teams, leagues, clubs, associations, and players to enhance fan engagement. It is particularly beneficial for teams to keep in touch with fans who live in a different geographic area and therefore may not have the opportunity or freedom to communicate directly.

The thing is, when we tokenize a specific part of an industry, we enable consumers or fans to participate and interact with the business of that industry. As fans of different sports and teams, we love nothing more than being able to take part in our favorite teams’ performances – from choosing the color of their jerseys to making player transfers. FTs holders can participate in these decision-making processes. Having such a right to vote increases the value fans place on the sports ecosystem. It also makes every move the concerned team takes more intimate for the FT holder.

Sports coin value
These tokens make fans more than just spectators. Through the fan token or sports symbol, the passive fan is converted into an invested fan. He can also take advantage of the financial side of the concerned team. These assets are not necessarily backed by the underlying value principles of Bitcoin or Ethereum. FTs get their value from how much fans value to participate in the club/team and earn unique benefits.

FTs holders can obtain rights to influence both binding and non-binding decisions regarding their clubs or teams. This includes discounts on club merchandise, voting rights on club polls and even select charitable initiatives. No amount of money can buy certain personal experiences like going on a group lunch with your favorite sports personalities. FTs can give that to the token holder.

Owning sports tokens is like owning a platinum membership card that comes with exclusive rewards and VIP access. Fans have access that does not expire and is not limited to a specific season. These perks can add an extra layer of pride and prestige to the tokens.

Furthermore, these mathematical tokens are completely replaceable (unlike NFTs) and can be redeemed in any future product transaction. If the team generates more interest for these sports tokens or wins a league, it will directly affect the demand for these tokens. A classic example of this is Paris Saint-Germain (PSG). When five-time Golden Boot winner Lionel Messi joined Paris Saint-Germain, the team’s tokens skyrocketed, benefiting token holders around the world.

International sports teams participate in fan symbols
A wave of sports icons and improved fan engagement has revolutionized the sports industry. Certain teams took the lead. For example, in January 2020, Atlético Madrid became one of the first football teams to release FTs. Many other teams followed, including Barcelona, ​​Valencia, AC Milan, Juventus, Manchester City and Roma. In basketball, the Cleveland Cavaliers have joined the fan token platform. Unsurprisingly, Indian Premier League franchises Punjab Kings, Royal Challengers Bangalore and Kolkata Knight Riders have also jumped on the bandwagon by joining the blockchain-powered sports sharing platform. Likewise, gaming, motorsports, and even MMA (Mixed Martial Arts) have started shipping blockchain-based tokens to fans around the world.

Something small
The cryptocurrency market is very volatile and buying these assets will always be considered a high-risk investment strategy. However, these assets are slowly becoming part of modern day culture and regulators are also taking a closer look at them now.

Having said that, sports fans must realize that FTs give them the opportunity to interact more with their favorite teams and be part of an exclusive community. The more Fan/Sport Tokens you have, the more influence you will have on your favorite team. Your chance of winning financial rewards increases. All this while still being entertained by watching and cheering for your favorite game or favorite athlete. It can make you a real game changer.