Fan tokens are products derived from cryptocurrencies launched by a sports club in collaboration with crypto companies to provide space for collectors to vote on a number of decisions.
Imagine that a company engaged in the cryptocurrency sector wants to increase the use of crypto coins and tokens. They did research on various aspects until they finally found out how much the fans love their idol football club. They also understand that people who are already in love will do various things. Finally it was decided to create special tokens in collaboration with a number of popular football clubs and then sell them to the fans. Part of the money raised will be split in two, one for the football club and one for the token creation company.
Examples of fan tokens are token products launched by AC Milan, Inter Milan, Juventus, Real Madrid to Manchester City in collaboration with Socios. Every fan who wants to buy their favorite fan club token can access the Socios website or application and follow the instructions provided therein.
What are the benefits received by fan token owners?
1. Has voting rights over a number of club decisions
A football club always makes decisions both strategic and minor. Now, for minor decisions, special access will usually be given to fan token owners to participate in voting.
2. Received an award from the club
Any club can be successful in terms of the economy when they manage to maintain a harmonious relationship with the fans. Loyal fans in the end will shop diligently for official club output that contributes to the club’s own income. If loyal fans take part in buying fan tokens, in the end they will be rewarded so that their sense of loyalty will be stronger.
3. Contribute to merchandise design
Merchandise design is related to art. On the other hand, fans really want their favorite club to launch clothes and other merchandise with attractive designs. Well, it’s not uncommon for fans to have unique and interesting design ideas. To facilitate the process of transferring ideas from fans to clubs, it can be facilitated through fan token ownership.
4. Get exclusive experience
Because fans have already spent their money to buy fan tokens, clubs usually pack a special package that is different from the others. If, for example, ordinary fans can only watch the match live, then fans who have fan tokens can be given exclusive access to watch players while they are training.
Since the introduction of cryptocurrency digital currency as an investment asset to the global public by crypto developers, currently there are many decentralized-based digital coins and tokens that have emerged offering various platforms of excellence that are expected to attract consumers to buy and own them.
The developer takes advantage of the potential and opportunities for the emergence of community and group solidarity in various social lives as an important target to be utilized in order to support the strategy and marketing of digital tokens/coins. One of them is the emergence of digital fun token tokens that take advantage of the phenomenon of community enthusiasm or football fan club supporters as potential targets directed to enter and join the fan token community.
Fan Token itself has the meaning of a fan token, which is a digital asset that was born from utilizing supporters of famous football clubs who are their idols where football fans or supporters can buy various club merchandise such as club uniforms, knick-knacks/souvenirs, to strength. as the owner of the token to influence the club’s decision in a certain poll.
To create a digital token based on this football club sport or known as a fun token, the asset developer will work with the management of a famous football club to smooth out the goal of creating this token.
Football club fans can express their love and feel fanaticism and enthusiasm for their favorite club by buying these tokens where the fun token will provide various types of club products for fans to buy and every purchase of club-specific products is digital and consumers/fans do not get a kind of clothes, t-shirts and club knick-knacks but in the form of digital tokens. This is similar to ast digital NFT, only the difference lies in the fun token having fungible characteristics or being exchangeable into fiat currency. If there are a lot of enthusiasts or buyers of this fun token asset, there is a potential that the price of the token will rise and the owner of the token has the potential to benefit from the increase in price.
The more widespread the crypto world, many football clubs do not want to be left behind in creating crypto assets, crypto assets from this soccer team are called FAN TOKEN, or crypto tokens made specifically for soccer fans around the world. Football fans can buy tokens based on their favorite team, for example, if you are a big fan of LAZIO then you can buy tokens made by LAZIO.
So what is the function of the fan token when it has been purchased?
The function of the fan token is still the same as other crypto, in fact, there is no difference at all, the only difference is the maker. We can buy fan tokens on crypto exchanges that provide them. After we buy the fan token function, we can collect them as assets or sell them again after the price is higher than the price we bought them. Fan tokens are not coins, but are still in the form of tokens that run on coins such as ERC20 or BEP20, which means that fan tokens are still cryptos that don’t have their own blockchain, aka they still ride on other coins.
The average fan token will go up a lot after the token is released on an exchange, this is actually the same with all types of tokens, because almost all tokens will experience a very high price increase after being released on an exchange, especially if the exchange is well-known. After the release and the price goes up, just like tokens in general the price will drop dramatically again, this is because many traders sell their assets at high prices so that the capitalist fan of the token goes down.
In general, after the price of the fan token has fallen, it will be difficult to go up again, this can be due to a lack of interest in the token, or the anxiety and fear of traders if the price does not rise again. And it’s still the same as the case with other tokens, those who are affected by FOMO and buy at high prices will experience losses.
Advantages of FanTokens:
The advantage of the fan token is that it comes from a well-known football club, in the sense that the token is made by the football club for their fans. So apart from being big fans, they can save assets in the form of fan tokens, maybe as a symbol if they are really big fans. Apart from that, the fan token is also a unique crypto token because it was created by a well-known football club.
Disadvantages of Fan tokens:
Fan tokens have a drawback which in my opinion is very crucial, namely having very small capital, this makes it very easy for whales to play with prices. In addition, with a small capital it will also make the price of fan tokens unstable, meaning that even a little increase or decrease in volume, the price will have a fairly significant impact.
Following are the types of fan tokens:
* (ALPINE) Alpine F1 Team Fan Token.
* (CITY) Manchester City Fan Tokens.
* (PSG) Paris Saint Germain Fan Token.
* (LAZIO) Lazio Fan Token.
* (PORTO) Porto Fan Token.
* (BAR) Barcelona Fan Tokens.
* (ACM) AC Milan Fan Token.
* (SANTOS) Santos Fan Token.
* (INTER) Inter Milan Fan Token.
* (GAL) Galatasaray Fan Tokens.
Those are several types of fan tokens, but in general their function is the same, namely to be traded or to be held as an investment. In my own opinion, investing in fan tokens is very risky, because it only has a small market capital, whales are often played and the fans are only football fans.
