Coinranking
Top gainers
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| |  | $ | +3.05%  | ||
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| |  | $ | +0.92%  | ||
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What is a fan token?
Fan tokens are a type of cryptocurrency that enables their owners to gain access to a variety of perks related to their fandom, such as voting on club decisions, rewards, merchandise designs, and exclusive experiences.
These tokens are utilized by sports clubs, music fan clubs, and other organizations to promote democracy and organization, establish club leadership, and more.
In contrast to NFTs, fan tokens are entirely "fungible" or interchangeable. This implies that, similar to fiat or cash, the tokens may be traded for sports club merchandise, VIP experiences, and other items.
Furthermore, they play an essential part in strengthening the club community, providing another team-branded piece of fandom.
Fan tokens are a type of cryptocurrency that may not be supported by the fundamental value principles of Bitcoin or Ethereum.
Their value is determined by how much fans value the ability to participate in the club and gain unique benefits.
The Chiliz token is the first and most prominent fan token that has given rise to a surge in new tokens, such as the Manchester City Fan Token, AC Milan Fan Token, Juventus Fan Token, and many others.
These currencies represent a new use case for crypto, as innovation in the blockchain space continues to reach new heights.
How do fan tokens work?
Fan tokens are a type of digital token that can be purchased by fans and traded like other cryptocurrencies.
When trading, the price of a fan token is typically set by the seller and can change based on market movement and the popularity of the token.
If a fan holds a specific amount of fan tokens, they are granted the right to vote on various matters related to their favorite club. These matters may include merch designs, tour bus designs, ticketing matters, match locations, and MVP categories.
Fan tokens provide fans with a greater sense of involvement with their favorite club and an extra level of pride and prestige, as the value of the tokens may increase over time as the club grows.
Fan tokens create an exclusive community of the most dedicated fans and offer a new way for fans to participate in a rewarding and exciting voting system.
The more fan tokens a fan owns, the greater their influence over the club, and the more loyalty they show to their team.
How to buy fan tokens?
To acquire fan tokens that exist on the Chiliz network, fans need to purchase CHZ via a crypto exchange.
Fan tokens that are specific to a team or club are rare digital assets that provide access to an encrypted ledger of voting and membership rights ownership.
CHZ tokens can be used to buy and trade different fan tokens on Socios.com.
Chiliz has an in-house exchange and trading platform called Chiliz.net where fan tokens can be traded against CHZ.
Some fan tokens are available on popular centralized exchanges, while others may only be available on decentralized exchanges (DEX) like PancakeSwap.
To trade for fan tokens on DEXs, you'll need to have a cryptocurrency.
The largest fan token, Chiliz, can be purchased on platforms such as Binance.com, Coinbase Pro, Huobi Global, Bithumb, KuCoin, and Chiliz. If you're interested in buying cryptocurrencies, you can learn more about it with this guide.
How to identify fan tokens?
Fan tokens are primarily used as a part of fan clubs and sports clubs, distinguishing them from other cryptocurrencies such as Ethereum or Chainlink that serve different financial or technical purposes. In essence, fan tokens are designed to be more fun and rewards-based.
Several fan tokens are available across both sports and music industries, including:
Let's look at Chilliz (CHZ)
Chiliz is a blockchain fintech provider for sports and entertainment that has developed the most widely used fan token platform.
CHZ is the native ERC20 utility token on the Chiliz network, secured by the Ethereum blockchain, serving as the digital currency for the Chiliz and Socios.com platforms.
Chiliz is credited with creating the fan token, a new form of cryptocurrency that is introduced to fans during a Fan Token Offering (FTO) by club partners on the Socios.com platform.
Fans who own these tokens gain access to a mobile platform that allows them to vote on matters related to their favorite teams, earning higher fan rankings as they accumulate more tokens and moving through different reward tiers until they gain access to the most significant VIP benefits.
Football clubs are increasingly using Socios.com as part of their fan engagement strategies, particularly in Asia, where the football fan community is rapidly growing.
This platform enables clubs to connect with their fans, generate additional revenue streams that are digital, secure, transparent, and closely connected to the real fan experience.
CHZ tokens are required for fans to participate in FTO and access the Socios Locker Room, where they can entice new club entries.
CHZ is highly liquid and traded globally on major exchanges like Binance, Turkish exchange Paribu, Huobi Global, and Mercado Bitcoin in Latin America.
Final thoughts on fan tokens
Although purchasing cryptocurrency is widely perceived as a high-risk investment, fan tokens, in particular, are even more prone to significant price fluctuations due to their popularity and the volatile nature of the crypto market.
Despite this, owning fan coins can lead to substantial profits if they become more widely adopted and sought after.
As with any investment, it's important to carefully evaluate the value and benefits that a product offers before making a purchase.
Fan tokens, however, should be viewed less as a traditional investment and more as a means of gaining access to the exclusive benefits and perks that sports clubs offer to their most loyal and passionate fans.