Socios fan tokens

An interesting trend within the crypto industry is the fan token boom which aims to marry blockchain technology & sports to the benefit of the fans.

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What is a Fan Token

A fan token is a blockchain-based digital asset created in collaboration with a sports team. Some notable examples of teams that have gotten into the industry include Paris Saint Germain F.C ($PSG), Barcelona F.C ($BAR), and Manchester City F.C ($CITY).

The purpose of a fan token is to allow sports clubs and their fans to better engage with one another. Seeing as how the fans are at the core of the sports industry and drive sales, purchasing decisions, and more, it makes sense that a team would want to reward its most loyal fans.

Typically, rewards are linked to the club and include things like a meet and greet with the team, phone calls from players, and exclusive signed memorabilia. However, the fan token boom isn’t just about giving away memorabilia or experiences. The fan tokens also act as a form of governance, allowing the holders to vote on certain decisions like the message to be relayed to the players before a big game or the design of the team’s bus. While holders, of course, cannot make large decisions like transfers, the ability to shape the team you love, even just cosmetically, is more than enough to draw people in.

Socios / Chiliz

As it stands Chiliz (CHZ) has a stranglehold on the fan token industry. Almost every fan token is created on the Chiliz network and used through Socios (a platform created by Chiliz). CHZ is listed on eToro.

Chiliz website

However, despite Chiliz enjoying a sizable first-mover advantage, another world-famous crypto exchange Binance has also joined the fray and created its own platform aptly dubbed the ‘Binance Fan Token Platform’.

While Chiliz facilitates the creation of fan tokens, Socios is the gateway for their governance capabilities. On Socios, fans can use their tokens to vote on various choices and take part in exclusive competitions.

Why are Fan Tokens Popular?

The popularity of fan tokens is due in large part to the popularity of sports. Devoted fans tend to be incredibly supportive and loyal, making them the perfect audience for what is essentially a fan club. Owning a fan token brings you much closer to your favorite team and for die-hard sports fans this is a dream come true.

A lot of factors will affect the popularity of a specific fan token, primarily the decisions made by the club it represents. If a club wins a large tournament or makes a high-profile signing, there will be far more demand for its fan token.

Although tradable, it’s better to think of a fan token as an entry to an exclusive fan club rather than an investment.

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