Cryptocurrency tokens for fans of sports teams

04.05.2021 |

For an article about fan-tokens

Many sports clubs have launched their own fan tokens. These include such large and popular teams as Barcelona, Juventus, Roma, and a few others. Under a fan token are two slightly different assets. The first allows direct participation in the management of the club, voting for one or another decision, and the second is a collection card, which allows you to play online on special platforms. The functions of one type do not exclude the possibility of the other and can coexist, giving fans even more emotions.

Why clubs need their own tokens

First of all, for sports teams, fan tokens are another marketing move to attract new fans to their camp. Like the club merchandise, fans can feel connected even when they are away from the team and become a part of a multi-million community.

In addition, tokens allow you to make the fan community part of team management. For example, uniforms for home and away games, the team anthem and club insignia can be chosen by voting. Some executives plan to give even more power to fans, which will make the sport more democratic and interesting to the fan community. After all, everyone can feel part of something big by taking part in the management, and not just an outside observer surrounded by people like themselves.

How fan tokens are created

Fan tokens are issued on special distributed registries similar to the Ethereum blockchain. Unlike the latter, such projects have several nuances. For example, instead of a proof-of-work or ownership algorithm, transaction confirmation is based on consensus. At the same time, fan blockchains are developing their own platforms, which, according to the authors’ idea, should unite the tokens of different clubs.

On average, it takes about a year and a half to issue a sports team’s token, which is how long it took Barcelona and Juventus United to prepare all the necessary documentation and work out the principles of token functioning.

Nowadays, not only management tokens are gaining popularity, but also collectible assets. To some extent, they can be compared to the now popular non-transferable tokens (NFT), but they also have some differences. If NFT transfers the undivided right to use, by analogy with the transfer of copyright to works of conventional art, then fan collectible tokens can be compared to the paper sports cards popular with collectors in the United States.

What are the prospects for new merch from sports teams

New digital team merchandise for fans is not limiting its use only as a voting or collectible asset. There are already a number of platforms that are somewhat similar to social media with some entertainment features.

For example, fans of various clubs, having collectible tokens in their assets, can arrange digital matches between their teams. On the same platforms, there are drawings of rare copies of collectible fan tokens. Also, when voting, some fans could get access to the VIP stands for key matches of different teams as an incentive.

Although fan tokens are just another marketing ploy to attract new fans, especially from the younger generation, this initiative is a shining example of another successful application of blockchain in real life, far removed from the realm of finance.