Fan tokens foster symbiotic relationship between celebrities and their supporters

• Fan tokens have been gaining fame amongst users in the Web3 world over the past year
• These tokens are quite different from the nonfungible tokens famously known as NFTs
• They are mostly related to a sports team, club or sports players and most teams have come up with their own fan token

Fan tokens are digital assets that the owner, a supporter of a particular sports team, club, or player, possesses and gets value from. Fans have typically had a passive relationship with sports teams, athletes, leagues, and clubs. An ecosystem with a one-way street was created. This was when fans bought tickets and merchandise while the team or players gathered the money.

But the situation changed when fan coins, with their origins in decentralization brought about by blockchain technology, emerged. How does a digital asset foster stronger ties between sports teams and their supporters? and how do they create a novel environment that benefits all parties involved?

READ: Chiliz token: A fan token shaping up the crypto-sporting world

These tokens are limited resources that fans can buy, sell, and trade. They can trade for collectables, merchandise, or meet-and-greets with the squad. They aid in the creation of a fan-based reward system. Insofar as they are not widely accepted outside of particular fan token ecosystems as a means of exchange for goods and services. The tokens do not operate as traditional currency. Fan tokens, however, can be used on their individual platforms to access exclusive content and take part in voting and other similar activities.

Difference between fan tokens and NFTs

Fungibility is one feature that sets fan tokens apart from nonfungible tokens (NFTs). While NFTs, as their name suggests, are not fungible, fan tokens are.

READ: A comprehensive guide to understand, calculate rarity in the NFT market

Items that are easily interchangeable with an identical component at a certain rate are referred to as being fungible. A dollar bill is equivalent to another bill of the same denomination in fiat money. Fungible assets can easily be traded because they can be divided into smaller pieces. Also, they don’t have any distinctive characteristics. Equities, bonds, and precious metals are a few instances of fungible assets.

Any of the fan tokens could be readily replaced with another fan token thanks to the property known as fungibility. Due to their fungibility, the tokens are also readily tradable as they enter the secondary market. Fan tokens, on the other hand, are team-specific and each squad has a limited number of them available.

Various types of fan tokens

In the sports industry, a variety of fan tokens are popular, although football team tokens are more well-known. Fan tokens, however, are also becoming more common in other sports, video games, and even film.

In football, a number of teams have teamed up with Socios to give their supporters tokens. In the world of football, notable titles include AC Milan, FC Barcelona, and Manchester City FC. Supporters can use CHZ to purchase their preferred fan ticket on the Socios app.

Unlike NFTs, they have been introduced by professional mixed martial arts groups like the PFL and UFC to offer supporters access to fan forums, chat rooms, and game rewards. In order to reward filmmakers, actors, screenwriters, and moviegoers alike, the entertainment business Mogul is providing entertainment tokens.

In addition, celebrities issue NFT fan tokens that represent ownership of a specific thing or event associated with the celebrity. These tokens can be used to symbolize a variety of assets, such as access to premium content, experiences, or even goods.

Likewise, gaming companies may issue NFT fan tokens that reflect a range of resources. These include in-game items, premium content access, or even voting rights for particular game-related decisions.

How the tokens work

These tokens work by allowing fans to purchase ownership of a particular asset or experience connected to a sports team, celebrity, or artist. These also grant them access to special features and advantages.

To create them on a blockchain, teams that want to do so work with blockchain-based tools like Socios. Fans can purchase the tokens for a set fee during a fan token offering (FTO). Depending on team performance, use cases, demand, project execution, and related other factors, the value of fan tokens may increase or decrease following the FTO.

European football clubs Barcelona, Manchester City, Juventus, and Paris Saint-Germain have also introduced their fan tokens. Furthermore, the KPOP Fan Token (KPOP) is a utility token that also gives K-pop followers a tokenized stake in the impact they can have through social media and other support on the Korean pop music sector.

They serve as an automated membership key that provides users with a range of advantages. Holders of the tokens are qualified to receive special rewards and team acknowledgement. They can get a seat for interactive workshops and autograph meetings as well as access collectables and products that are otherwise inaccessible.

Where to buy fan tokens

These tokens have given teams a powerful tool to monetize their devoted fan groups and create a new source of income. They are able to develop a blockchain-based follower reward system as a side benefit of the process.

Tokens for fans operate very similarly to other coins. These tokens, which have a finite quantity, can be purchased on the platform of the project in question or exchange that supports it.

Conclusion

It is important to note that the idea of fan tokens is still relatively new, and it will only become more solid as new use cases arise. Fan involvement has increased for the teams that have implemented these tokens. Their value rises as more token holders use them to take part in connected activities.

One enjoys watching teams play with victory as their only objective. However, a company must function effectively as a business in order to survive, earn money consistently, and make money. The opportunity for business with fan tokens is enormous. As more sports teams become aware of this, they are now vying to launch their own tokens in an effort to take advantage of fresh possibilities and surpass rivals.

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• Source: https://web3africa.news/2023/03/20/news/fan-tokens-and-how-they-work/