Fan tokens are digital assets in the crypto family designed to connect fans with various entertainment figures or mediums. Fan tokens have taken the crypto industry by storm, and numerous popular organisations and celebrities are jumping on the bandwagon.
From world-famous sports teams like Manchester City and Barcelona FC to professional martial arts organisations like UFC, numerous exciting parties are giving out fan token coins as we speak!
The Benefits of Fan Token Coins
This neat variation on the crypto coin model enables both parties (fans and their desired entertainers) to engage in a convenient relationship with a single tool of contact. Supporting your favourite team or celebrity could sometimes become a hassle, but it is no longer. Fans needed to manually monitor new opportunities to meet their idols, participate in various activities, receive awards for their loyalty, and even pay for their tickets. Fan tokens make these activities trivial, as everything is connected to a single commodity, enabling the coin issuers to have a steady point of relationship with their respective fans.
The utility here is straightforward - fan token coins make everything simpler and more accessible for interested parties. They eliminate complexities from a process that should be entertaining and pleasurable.
After all, fans want to have a good time interacting with their favourite teams and individuals instead of getting confused by numerous platforms, payment settings, charges, and other needless distractions.
How do Fan Tokens Work?
Recently, numerous popular teams and individuals have invested in fan token coins. We have already discussed their value and convenience, but how are fan tokens created and launched?
First, an interested party needs to find a blockchain platform ready to mint a specific token for their needs. Simultaneously, one must identify and organise all related utilities they want to tie with a fan token. After that, all specified utilities should be written into a smart contract, executing every term automatically. Once fan tokens are minted and powered with appropriate utility features, it’s time for launch. Fan tokens sell at a fixed price on the launch date, but their free market value is susceptible to change in future periods.
The Many Benefits of Fan Token Coins
Fan token coins live up to their reputation of full-stop interactive points for supporters. With their built-in utilities, fan tokens open up numerous opportunities for fans to stay engaged 24/7. Let us recount just a few:
- Voting rights in various activities - Fan token coins enable fans to participate in cosmetic, cultural, and practical decisions regarding a given team or celebrity. From choosing an entry song and deciding on the colour of special jerseys to other fun activities, every fan gets one vote to voice their opinions.
- Discounts and raffles - The advantages of fan token coins are not only sentimental, as coin issuers frequently offer lucrative discounts and conduct raffles to reward their loyal fans.
- VIP experiences - token holders also gain access to exclusive benefits that are not available to the general public. These VIP events and rewards could be a simply signed jersey or a full-on meet-and-greet with your favourite celebrity.
- Convenient transactions - Fan token coins also eradicate one of the most frustrating parts of being a devoted supporter - the necessity to manually purchase tickets for matches and events, buy merchandise, and pay for attending special events. Now, token holders have a unified point of transactions without confusion, complexities, or frustrations.
- Unique activities - Aside from the above-mentioned benefits, teams and celebrities often organise bespoke events, prizes, and activities to get back to their fans. This way, each fan token is slightly different from everything else, as they are tied to the creativity of their issuers.
Fan Tokens and Their Utility
But how do the fan tokens manage to do so much with a single smart contract ecosystem? Although fan tokens are similar to traditional cryptocurrencies, their utility features are far more advanced.
Utility, in general, is one of the biggest advantages of the crypto world, letting the crypto assets have unique features tied to them. These features are basically “IF” statements ingrained into the respective smart contracts. While Crypto and NFTs introduced and popularised the concept of utility, fan tokens have found the most practical use for this state-of-the-art feature.
With their robust and rock-solid smart contract base, fan tokens offer reliable utilities tied to reputable organisations. Utilities are readily available on respective platforms, so there is no chance of post-purchase disappointments or fraud.
Fan Tokens vs. NFTs
At this point, you might have formulated a fairly relevant question - how exactly are NFTs and fan tokens different from each other? Thus far, fan token features closely resemble NFTs. However, there are key differences. First of all, fan tokens have entered the market with significantly different expectations and, thus far, have garnered a steadier reputation compared to NFTs.
On a more technical side of things, fan tokens can be easily exchanged on the secondary markets and between individuals. Unlike NFTs, fan tokens are fungible and, therefore, seamlessly exchangeable. While NFTs were designed to be unique, non-fungible assets, letting artists and creators benefit from their efforts, fan tokens are interchangeable assets with various utilities tied to them.
So, it is beneficial to have a convenient means of exchange on the fan token market. However, fan tokens are not infinite, and only a fixed currency is distributed on the market. However, if you can’t find your favourite team token, chances are that issuers will mint more soon.
Different Types of Fan Tokens
Fan tokens have come a long way from their inception. As of 2023, the most popular types of fan tokens are sports team tokens, entertainment industry tokens and even Kickstarter tokens.
Sports Tokens
As discussed, sports fan tokens are by far the most dominant and celebrated type on the current market. Sports fans worldwide are searching for simplified and enjoyable ways to support their favourite clubs, players, and fighters. In return, they receive opportunities to participate in non-critical decision-making, discounts, attend closed events, etc.
Entertainment Industry Tokens
With this fan token variation, interested individuals can acquire exclusive access to exclusive content from movie makers, actors, singers, and other performers. Entertainment fan tokens are an easy way to engage with fans and develop a mutually beneficial relationship with a massive fanbase.
Kickstarter Tokens
Kickstarters and similar investing endeavours have become increasingly popular and mainstream in recent years. Various creators like directors, game developers, and even authors utilise Kickstarter opportunities to finance their passion projects. With fan tokens, these startup projects become simpler to organise and honour.
In most cases, Kickstarter creators offer ample benefits in return for generous financing from the fans. From free copies of the finished product to additional content and even opportunities to take part, Kickstarter fan tokens are gaining steam on the crypto market.
How to Purchase Fan Tokens
Buying fan tokens is quite a simple task. Simplified even more than the NFT transaction process, most fan tokens can be purchased by Chillz (CHZ) cryptocurrency, which in itself is a fan token. All you need to do is find a reputable platform that offers fan tokens, create an account, and distribute sufficient funds to purchase your favourite token. Sometimes, you might have difficulty finding a fan token that belongs to your favourite team or celebrity, but worry not! as the secondary market is fairly active with resale opportunities.
Numerous token holders post their fan tokens for resale every day, so if your desired tokens are out of stock, chances are you will still get your hands on them. Once you go ahead with a purchase, a respective fan token will be stored in your digital wallet. Now, you are in complete ownership of these digital assets.
If you decide to change your mind, putting up your fan token on a resale market is also trivial and effortless. Since the market cap of fan tokens is growing every single day, there is no shortage of liquidity and buyers to accommodate your selling desires. However, the selling price of your token might vary depending on the popularity and utility depth.
Best Platforms for Fan Tokens
Finally, one question remains - what is the best platform to acquire fan tokens? The answer to this question is trivial, considering the current environment. The Socios exchange platform currently dominates the fan token landscape, and deservedly so. Socios continuously collaborates with prestigious sports teams, issuing widely desired fan token coins worldwide.
Top Fan Tokens by Market Capitalisation
The fan token industry has reached impressive heights in a short amount of time due to its tangible value and ease of use. Below, we present the most popular fan tokens you can trade for in the current environment:
- Chillz (CHZ) - coming in as an undisputed champion of the fan token market ($450 ln market cap), we have the Chillz coin, which popularised the fan tokens in the first place. Chillz tokens are leading the market charts confidently in 2023.
- Barcelona (BAR) - Barcelona fan tokens currently stand as the leading sports tokens in the world. To nobody’s surprise, the most popular football club in the world has conquered the fan token market and received a massive injection of cash after issuance.
- Alpine - falling slightly short of the number two spot, the Alpine F1 team token is famous for treating its fans generously. Alpine offers ample opportunities for fans to participate in team activities, play interactive games, purchase team NFTs, and much more.
- Manchester City (City) - Naturally, the current Champions League winner has made a much-deserved appearance on our top fan tokens list. City tokens offer unique benefits to differentiate the brand from other football teams. As of 2023, City Tokens are making tremendous strides to develop a custom utility package for their loyal fans.
Summary
Fan tokens were conceived to simplify the fan base interactions, and they easily stand out as one of the most stable and lucrative investments in the crypto market. Due to their worthwhile utility offerings, reputable issuers, and naturally developed popularity, fan tokens have a slim chance of collapsing anytime soon.
For aspiring crypto investors and traders, fan tokens represent good opportunities to profit and hold reliable digital assets in your crypto portfolio. Most importantly, fan tokens have avoided the infamous status of NFTs, maintaining their steady reputation and thus sending healthy signals to interested investors.
