As things stand, cryptos remain a growing asset class. Tokens that have become the staples of the cryptocurrency market, like Bitcoin and Ethereum, are still trending upwards in the long run. However, they’re as volatile as ever (as indicated by dramatic drop-offs in the past year or so). The market is also maturing, with more use cases dreamt up seemingly every day. This is especially true of those blockchains with “smart contract” capabilities, which turn them into flexible development platforms (the biggest and best known of which is still Ethereum).
By this point, there are all sorts of applications that people have created. And some of them, like Power Ledger’s energy trading platform or Brave’s use of tokens that wallet-holders receive in return for viewing curated advertisements, have been quite unexpected!
One such innovation that’s been around for a while now but is starting to emerge as trendy alternative crypto is that of tokens connected to sports teams and leagues (and, in some cases, even events). Essentially, these crypto-based fan tokens comprise a sort of fan membership. Rather than simply signing up with a username on a team site and receiving emails (or something of the like), however, fans who invest in fan tokens actually secure digital currency that represents the team or league at hand.
The Chiliz token that users have to buy to enter the system, which powers fan tokens, is currently built across the Ethereum, Binance and Tron platforms. Once a user has some Chiliz, they can use it to purchase fan tokens of whichever club or league they want to support through the Socios app, with each fan token traded at different values according to popularity and demand.
If all this sounds complex, the reality is that many of those complexities are essentially removed for the user, who can quickly gain the ability to use the tokens to participate in fan activities. The aforementioned app includes games and competitions with rewards, including tangible ones like exclusive “fan experiences,” tickets to matches, collectables, and merchandise. Having more of the tokens also affords fans the ability to vote and influence non-critical (or just-for-fun) team decisions, such as the design on the side of the bus for a road trip. There are also perks like community engagement and early access to team news, as well as “Socios United” tokens that fans can earn (rather than buy) as a sort of loyalty reward.
Already, there are a lot of major sports teams that have established fan tokens. The most significant concentration is in football, where many of the largest clubs in Europe and around the world –– as well as some national teams –– are participating. Gaming, motorsports, fighting sports, and American football have a presence as well, and participating NBA franchises include prominent teams like the Boston Celtics and New York Knicks, as well as 2022 championship favorites the Phoenix Suns. Given the pace of adoption, it seems as if most top-level pro sports teams in major leagues around the world will ultimately be on board.
Also of note with regard to the potential growth of fan tokens is that they are beginning to influence sponsorships –– which suggests they’re in it for the long haul. The Socios brand has appeared on shirts for various clubs, and football stars like Lionel Messi are even accepting fan tokens –– in his case as part of the welcome package when he joined Paris Saint-Germain (causing the PSG token value to jump 130% in five days).
Any way you look at it, fan tokens are well on their way to becoming a well-known part of the sports industry, and current signs suggest they could become profitable (and fun!) investments for fans. There are never any guarantees, and we wouldn’t venture to speculate as to specific shifts in value. But expect to see and hear more about these alternative cryptos moving forward.
