Fan tokens: what you need to know before buying them
The first to understand its potential was Juventus, back in 2019. Since then, the diffusion of Fan tokens, the digital tokens of the sports world linked to blockchain platforms, has not let up. The just concluded Qatar World Cup also allowed fans from all over the world to support their favorite teams through Fan Tokens.
What are fan tokens?
“These are digital assets in blockchain through which the teams offer their fans unique and exclusive advantages and prizes – explains Cesare Florio, CEO of Regnos, a company specialized in blockchain that has recently created the Parma Fan Token -. Although each professional sports team can decide which ‘benefits’ to make available to their fans, Fan Tokens improve the relationship between fans and the team in absolute terms, providing cohesion and a sense of belonging. Furthermore, fans have the possibility to intervene on certain decisions concerning the football of their heart club.”
Among the advantages that fans can access by purchasing their team’s tokens are the possibility of participating in events and meetings with footballers, participating in exclusive surveys, receiving prizes and awards. For clubs, it is a new channel for generating income, as well as a method for retaining and developing proximity to their fans.
Fan tokens have many of the typical characteristics of cryptocurrencies. And like cryptocurrencies, they can be bought, sold and traded. Their importance comes from the value of fan participation and engagement. They have an initial sale price on the market, which changes over time, based on the number of fans and owners who decide to hold or sell the token.
A few caveats before you buy them
Once tokens, especially in the artistic field, were considered a form of investment. In fact, tokens can be bought, sold, and traded as hands for more traditional asset classes, but their purpose is entirely different, and especially in the case of fan tokens, there’s a ridiculous utility. Furthermore, recalls Florio, “the world of cryptocurrencies is a universe full of risks. 2022 was a year to remember, unfortunately negative, mainly due to 3 events, the bankruptcy of FTX, one of the most important exchanges in the world, the collapse of Luna, a crypto, which burned several billion dollars in its collapse of owners and general decline of the market and therefore of the price of the main cryptocurrencies. Despite these three events, which we can define as apocalyptic for the crypto world, the market continues to believe in the effect and change that the digital blockchain and web 3.0 companies can get in everyday life”.
According to the CEO of UNITO, you need to be very careful when buying a token in order not to risk being a victim of fraud. In particular, it is necessary to verify that the company is registered with Oam or that in any case works through an authorized platform, analyze the team that created the project (read white papers and smart contracts) and if we are talking about fan-tokens, verify that within the aforementioned team’s social network there are references to the token, otherwise you may come across a token that is not approved by the club.