Often linked to the world of football, the first Fan Token created was that of the Juventus club in Turin in 2019. Today, Fan Tokens have extended to other sports disciplines such as F1, basketball or even the MMA. The Fan Token trend could increase over time and affect other sectors than sports such as music or fashion.
Socios has developed the first app that allows fans to get Fan Tokens from their favorite team. The objective of the application is to play, to win rewards giving the right to unique experiences. This application allows fans to be closer to football organizations and other sports such as basketball, motorsport or even MMA.
The first innovation of Fan Tokens is that it allows both sports clubs and supporters to benefit from it. Fan Tokens allow sports clubs to create a new source of income. Supporters, on the other hand, have the opportunity to have an impact on the life of their favorite team. Fans will have access to rewards offered by their favorite team, such as exclusive products or VIP experiences with the club.
Fan Tokens act as a voting power. The benefits obtained from Fan Tokens depend on the number of Fan Tokens you own. The more Fan Tokens a supporter holds, the greater their vote's impact will be. The supporters' vote will always be on secondary decisions of the club. For example, the votes will concern polls on the design of the team bus or the choice of entrance music at the stadium.
Fan Tokens are available on Binance and on the Socios app. Binance allows you to obtain Fan Tokens by exchanging them for other cryptocurrencies or fiat currency. To own Fan Tokens on the Socios app, you must first hold Chiliz (CHZ), the exchange currency on Socios. CHZ is the main digital token for sports and entertainment, to exchange it for Fan Tokens.
In 2021, following the announcement of Lionel Messi's contract signing with Paris Saint-Germain, the value of his fan token, PSG, increased by over 100% in just a few days. Conversely, it has been observed that a significant injury to a team's star player could cause the price of Fan Tokens to drop.
The Fan Token market is still very young. Although it is rapidly developing, it still presents some risks, particularly in regard to the legislative framework that surrounds cryptocurrencies. Being still immature, the Fan Token market, like any other young market, is susceptible to being manipulated in case a single person holds a majority of tokens for their favorite team. If a person holds a majority of tokens for a team, they would also hold a majority of the club's votes.
Despite these risks, Fan Tokens will encourage fans from all over the world to come together and share their passion for their favorite teams. Furthermore, the Fan Token market still needs to be developed. Fan Tokens allow for the expansion of a team's governance to its supporters. Therefore, it is without a doubt that the Fan Token market will attract the interest it deserves.