Fan Tokens and Their Utilities

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(Edited)

Although I have encountered Fan Tokens in the past (like LAZIO, PORTO) mostly via Binance, I never really delved deeper into them or learned what they really are, their utilities, or how they came about.

According to Wiki, Fan tokens were first introduced in 2019 when football clubs Juventus and Paris Saint-Germain launched their own official tokens. They were followed by various clubs like Barcelona, Manchester City, Arsenal, and FC Porto among others.¹

Let's dive a little deeper and learn more about them.



What are Fan Tokens

These are fungible digital assets that give their holders various membership perks. These tokens are specific to a team or a club and can be bought via Fan Token Offering (FTO) or on the open market when they are made available.

They are "like points on a mobile app that a team could award or top up to their fans. They are not a currency that users can use to purchase goods, but can exchange Fan Tokens with other Fan Token holders on selected crypto exchanges"².

They are digital assets that the holder, a fan of a specific sports team, club, or player, owns and derives value from.³

Per CMC, the Chiliz token (CHZ) is the very first and most prominent fan token.⁴ Other popular Fan Tokens include FC Barcelona Fan Token (BAR), Manchester City Fan Token, Paris Saint-Germain Fan Token, Juventus Fan Token. They range from sports teams (soccer to NFL to cricket) and also music bands.

Currently, the top 5 based on market capitalization are as follows:



Simply put, Fan Tokens are digital assets that give the holders special or exclusive benefits. The tokens are fungible, hence, they can be exchanged for sports club merchandise, VIP experiences, and more. Their worth or prices are "derived from how much fans value being able to participate in the club and earn unique benefits."⁵

Utilities

  • Membership/Rewards Benefits: Fan Tokens serve as an automatic key for holders to unlock or gain access to fan-related memberships such as VIP status at games and events; access to exclusive content not available to the general public such as behind-the-scenes footage, interviews with players and coaches.

  • Access to Merchandise & Collectibles: Holders are given access to the club's merchandise and collectibles.

  • Voting Rights: Depending on the club, holders are given the right to vote on club decisions, merchandise designs (such as the exterior design of the team bus, pattern choice for new team kit designs, MVP categories, match locations, etc)⁵.

    Apparently, they are comparable to corporate shares where holders "may not be granted a decisive say (like governance tokens do in tech-related features), at least they allow fans to vote on club matters is a welcome step and makes them feel like a part of the club."⁶

  • Loyalty Rewards: Fan Token holders can "accumulate loyalty tokens by using or engaging with the app and participating in team polls, games, quizzes, and more. The loyalty tokens can then be used to redeem team merch, memorabilia, match-day & VIP experiences, meet & greet events, and more from the Fan Rewards feature."⁷

Fan Token Markets



Fan Tokens are available on Pancakeswap and in various centralized exchanges (CEX) as follows:

Summary

Fan Tokens are digital assets (not necessarily a cryptocurrency) that are specific to a certain club or sports team. These tokens grant holders (usually fans) to enjoy certain perks or benefits, including discounts on ticket events or merch, exclusive rewards, and promotions that are not available to the general public.

Fan Tokens play an important role in a team's or project's revenue stream as they can be sold to fans through an initial coin offering (ICO) or FTO and then traded like other cryptocurrencies. They also enable fans some investment or monetization opportunities.

While these tokens cannot be used to purchase goods, they can be traded in several exchanges like Chiliz, Pancakeswap, Binance, and others.

For infotainment only. Sources: Cointelegraph / CMC / Binance / Socios

Lead image created on Canva. Logo/s from Socios. Screenshots linked directly to their sources. No copyright infringement intended. 18092023/10:48ph

Posted Using LeoFinance Alpha

hive-167922 fantokens chz fungibletokens utilitytokens chiliz digital-assets leofinance ctp
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47 comments
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Thanks for sharing your post and have a wonderful day.

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You're welcome. I appreciate your remarks and have a great new week.

!LADY

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View or trade LOH tokens.


@ifarmgirl, you successfully shared 0.1000 LOH with @olamummy and you earned 0.1000 LOH as tips. (1/19 calls)

Use !LADY command to share LOH! More details available in this post.

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Please report abuse of downvotes and reward destruction by criminal acting stakeholders on the Hive Blockchain to the SEC.

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(Edited)

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Are they earned through the Hive front end? This is a great post, thanks for sharing.

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No, they are not, Amie. They are bought on exchanges :)

Thanks too, for your comment 😉

!LUV
!LADY

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Some of these were gimmicks CJ and just money grabs. The concept was great ie let fans have a vote and say in club matters. There are teams who actually do let you have a say in team selection and things but they are not any of these mainstream fan tokens.

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I imagine, Tito Ed. I am sure you are privy to the real things especially in football clubs hehe.

It would truly be surprising if a fan token could allow fans to vote on major matters. It did mention that fan token holders do not have a say on things that impact the club's or team's business xD

!PIZZA
!LUV

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I am not a Fan for Fan token but I buy fan token when some kind of airdrops or facility I receive. And I feel fan token is a risky token and investing there give me a feeling I am gambling. .
By the way, thank you for sharing detailed knowledge.

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!LOLZ
!MEME

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It's a new token which i see now, I'll decide to buy it later. But yesterday i explore about dbond token and i see your post too, does it worthy to hold dbond token?

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I staked some DBOND which earns me DAB tokens every day. DAB kept as liquid in the wallet will give you HIVE drips daily. While staking the DAB will earn DBOND every day.

!LADY

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That's a fine process I'll also buy some dbond to get daily hive drips 😁

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Yes. I read that there was a DBOND sale on 17th September and I don't know when is the next one.

Staked DBOND => Earn DAB daily
Staked DAB => Earn DBOND daily
Liquid (Unstaked DAB) => Daily HIVE drips

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I also don't know when it'll on sale next time 😕

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Wow! Another type of token. The digital world is really amazing! Thanks my friend for sharing this.

!PIZZA

!BBH

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Indeed. Many things coming out now and then. Although Fan Tokens have been around since 2019 :)

!PIZZA
!CTP

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Wow! I am very late to the party. Imagine, Fan Tokens have been in existence for 4 years already and it is my first time to hear about them. 😆

!LOLZ

!PIZZA

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Hehe. I first encountered some of them in 2021 if I'm not mistaken through Binance Launchpad.

!PIZZA

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Curious if were you able to buy some of these fan tokens.

!PIZZA

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