This gives points to both parties and further propels the team’s popularity. Stay tuned with me to learn about how you can use tokens to take your fandom to the next level. Football (or soccer, for our American readers) has been a beloved sport for well over a century, and the FIFA World Cup 2022 has stoked passion even further. But have you ever wondered how to become a superfan?
Wait a minute! I’m not talking about trumpeting in the stadium or painting your face. Today’s article is about “fan tokens,” which are gaining increasing popularity among sports buffs. Fan groups for sports teams, artists, and celebrities have become very popular. Even if you may not be interested in sports, you probably have some friends whose eyes are glued to the score on game days.
Fan groups need ways to communicate with team members to show their support. Until now, communication between fans and their teams has been pretty one-sided: the fans support the team, and sports clubs and teams communicate indirectly with the fans.
A new generation of tokens, which appeared by the name of Fan Tokens, solves this problem by making communication between the fans and their favorite teams possible. In addition to increasing the teams’ engagement with the fans, these tokens can generate revenue for the teams while also giving points to the fans.
Fan tokens are not only for supporting teams; you can also use them to make profits. Check out the PSGUSDT chart to see how I traded with a fan token.
On February 9, 2021, I heard the rumor of Lionel Messi joining Paris Saint-Germain. So I invested in the Paris Saint-Germain Fan Token(PSG) and found this token’s support and resistance zones using technical analysis.
I set my stop loss below the support zone and waited for my take-profit level until I heard the real news of Messi joining Paris Saint-Germain. Luck was on my side; my take-profit level was in this token’s resistance zone, and I made about $12,000 profit on August 10, 2021, once the news of Messi joining Paris Saint-Germain broke.
I used a combination of technical analysis and Joseph de la Vega‘s famous quote, “Buy on rumors, sell on the news,” to profit from PSG Fan Token.
What is a fan token?
Fan tokens are utility tokens based on blockchain technology with the intent to improve engagement between fans and teams. Unlike NFTs, fan tokens are fungible.
The valuation of fan tokens differs from cryptocurrencies – they are tradable, but slightly different from common cryptocurrencies. I’ll explain further.
The first thing I have to tell you about these tokens is that they are fungible tokens, meaning they are completely interchangeable.
Fungible tokens are like Bitcoin, which means you can change one bitcoin to another with the same value, in the same way you can exchange $1 for another dollar. Fan tokens are utility tokens based on blockchain technology created for fans to increase their interaction with their favorite teams, which provides new ways of generating income for token holders and sports clubs.
Despite all the similarities, fan tokens and cryptocurrencies also have differences; more precisely, valuing them is different. Unlike with cryptocurrencies, the team’s popularity directly affects the value of the fan token. In other words, the more you are interested in the exclusive privileges the sports team gives to the token holders, the higher the value of that fan token will be.
On the other hand, the more privileges the manager of a sports club or an artist gives to the buyers and holders of their fan tokens, the more the value of those tokens will increase. You should note that events such as winning important matches or buying famous players for a team can also increase the price of these tokens, like my profit when Paris Saint-Germain bought Messi.
- Robinhood App 2024 Review - Is “Free” Worth it for Fewer Features?
- Introduction to Smooth Love Potion (SLP) Crypto, and How to Use It
- FXTM Unveiled: A Comprehensive 4M User Forex Broker Review
- CumRocket, The Naughty Boy Of Cryptocurrencies
- What Is a Forex Cent Account? Learn the Basics!
- Interactive Brokers Review: A Globally-Regulated Discount Broker
How do Fan tokens work?
Fan tokens give authority to fans; meanwhile, they generate revenue for clubs. The token is a bridge for fans to access privileges and experiences they wouldn’t otherwise be able to.
Clubs reward fan token holders with special bounties, and you can even use these tokens to buy sports merchandise. Fan tokens suggest many use cases, like voting about decisions in a club. Stop fantasizing! … You are only allowed to participate in minor decisions such as voting for new players’ shirt numbers, choosing songs for club parties, or proposing designs for the new season’s uniforms.
Ruling about transferring players is not in your scope of authority. But these small influences are fun to participate in nonetheless. In addition, clubs reward fan token holders with special prizes or exclusive privileges.
You might get a signed t-shirt from your favorite player or get invited to have a private meeting with him. Since these bonuses are given exclusively to fans, it increases the motivation and interest of fans to have these tokens. Other benefits of these tokens include:
- Watching the game from a unique fan stand
- Drawing and donating various gifts, such as club sportswear signed by the players
- Having the possibility of entering the players’ room and communicating directly with them
- Deciding on multiple team- and stadium-related designs, such as the design of the players’ uniforms, stadium advertisements, the dressing room, etc.
- Voting to select the essential players of each season.
While the trade of fan tokens is like other cryptocurrencies, you can use them to buy sports goods and services.
- RACEOPTION REVIEW 2024: IS IT WORTH IT?
- Exness: Unveiling Excellence in Forex Trading with Real Madrid
- The Complete (2024) E*Trade Review: Online Trading Simplified
- InstaForex - Forex Trading, Forex Options, & CFD Platform
- Ally Invest 2024: Commission-Free – A Feature Trade-Off?
- Grand Capital Broker Overview - Pros, Cons, and Warnings
What is Socios?
Socios is a platform that exchanges fan tokens. To trade on the Socios platform, you need CHZ native tokens. There are other blockchains like Binance Smart Chain (BSC) that suggest Binance fan tokens, but they are less prevalent than the Chiliz platform.
Fan tokens are tradable on the Socios platform, which Chiliz provides. Chiliz is a platform that has brought economics and technology to sports and entertainment. While other blockchains like BSC offer “binance fan tokens” on exchanges, Socios is currently the most popular and has partnerships with some of the larger clubs.
This platform has made many fan tokens available; some of the most famous tokens are Arsenal(AFC) and Manchester City(CITY), Juventus(JUV), AC Milan(ACM), Barcelona(BAR), Paris Saint-Germain(PSG), etc. To find your favorite team’s fan token, you can check the Socios Fan Tokens page.
It is interesting to know that Chiliz was founded in 2017 by Alexandre Dreyfus, and it was the first platform to establish a new generation of tokens to support communication between fans and teams.
- Mastering Double & Triple Tops/Bottoms: Boost Your Win Percentage
- OvalX Review - What You Need to Know (formerly ETX Capital)
- How to Read Candlestick Charts? (The Battle of 2 Species)
- Introduction to Smooth Love Potion (SLP) Crypto, and How to Use It
- Investors take Forex platform ROFX and its founders to court
- Markets.com 2024: Unveiling the Ultimate User-Friendly Platform?
How to buy fan tokens?
Maybe I’ve piqued your interest, and you’re wondering how you can buy fan tokens. There are various platforms for buying fan tokens, and Socios is considered the most popular.
You might not know where to start, but don’t worry – we’ll outline the steps for buying your first token. If you are interested in fan tokens and are curious where to buy them, follow these steps:
- Go to the App Store and download the Socios app.
- Enter your personal information (name, number, email, etc.)
- Now you can see the fan tokens list and choose your favorite one.
- Be aware that you have to charge your wallet with CHZ before any transaction (as mentioned earlier, you need a CHZ native token for transactions on the Socios platform ).
- Choose your favorite fan tokens.
- Congratulations! Now you’re a superfan.
- If you click on the sport option at the bottom of the page, you can participate in the voting. There are also games in this section that you can play to earn rewards.
- The Story Behind the MBA Forex Scam and Closure
- ZENITH TRADING STRATEGY FOR BINARY OPTIONS
- Discover the Magical 300-Year-Old Principles Called Technical Analysis
- IG review 2024: should you sign up with the broker?
- CXMARKETS BROKER REVIEW 2024: COST AND BENEFITS
- Volume Based Trading Techniques (Volume Indicators)
Is a fan token a good investment?
Like any other tokens, trading with fan tokens requires special considerations. The price of fan tokens is volatile, and they may lose value quickly. Important seasonal and intra-team events strongly affect the price of these tokens.
These tokens are created for fun and entertainment, but be aware that they come with a high investment risk.
Although fan tokens are considered high-risk assets, they are influenced by the general market atmosphere and react to the rise or fall of major currencies such as Bitcoin or Ethereum. Therefore, they are within the frame of analysis and prediction. But, since these tokens have high investment risk, it is better to view them as an option to access certain privileges.
For example, When Lionel Messi joined Paris Saint Germain after 21 years of playing for Barcelona, the Paris Saint-Germain Fan Token(PSG) hit its all-time high of $61.54 – but lost half its value after the deal was signed. Remember that these types of tokens appear in the arena for entertainment and engagement with your favorite team.
Which sports have fan tokens?
Fan tokens are already more widespread than you may think, and their potential extends beyond just the sports world. Fan tokens are digital assets based on blockchain technology that are not limited to only football – or even to sports in general.
Currently, teams from various sports, such as basketball, tennis, UFC, etc., use fan tokens to increase their interaction with their fans. But even actors, singers, YouTubers, etc. can get involved in the fan token trade; anyone with a motivated fan base can offer fan tokens. Fan token providers can grant unique privileges to their owners as a reward for their loyalty and support.
- Unbiased (2024) Review of IronFX Trading Platform
- Full Review of Spectre.ai: Low-Risk, (Decentralized) Broker
- BDSwiss review of licensed forex broker
- Uncovering the Benefits of Dukascopy Swiss Forex & CFD Brokerage
- How to Use Charts for Smart Trading Decisions
- OvalX Review - What You Need to Know (formerly ETX Capital)
What are the three popular fan tokens by market cap in 2023?
Currently, there are many fan tokens, and their number is increasing every day. The popularity of these tokens is variable in this competitive market, and as such, their prices fluctuate.
Three of the top fan tokens in terms of market cap are S.S. Lazio Fan Token(LAZIO), Santos FC Fan Token(SANTOS), and FC Porto Fan Token(PORTO). You can instantly see these tokens’ market cap and current price in Coinmarketcap.
Here I want to introduce you to three of the best fan tokens with the highest market cap:
- S.S. Lazio Fan Token (LAZIO)
The #1 rank among fan tokens belongs to the Lazio Italian team. The market cap of this token reaches about 48 million dollars, its price is 5.59 US dollars, and 8.6 million are in circulation. This token launched on the Binance blockchain in Oct 2021, and its holders can participate in voting seasons.
The President of the Lazio club expressed his satisfaction with the cooperation with Binance as follows: “We are very pleased with this international collaboration. This partnership will increase our digital presence and enable us to connect with our fans worldwide.”
- Santos FC Fan Token (SANTOS)
Santos FC fan token belongs to the famous Brazilian team Santos. Pelé was one of the most popular players on this team. This fan token was launched in Nov 2021 and is currently in second place with a $33 million market cap. Its price is 7.26 US dollars with a 4.5 million dollar circulation supply.
One of the features of this token is the right for token holders to vote for various events, such as choosing a song for players’ training time; the Santos club in turn rewards them with NFTs.
- FC Porto Fan Token (PORTO)
Third place belongs to the Porto fan token launched in Nov 2021 on the Binance blockchain with a $32 million market cap. Its current price is $4.19, and it has a 7.8 million dollar circulation supply. Porto holders could exchange their tokens with official NFTs, which the Porto club offers. Also, they could meet their favorite player or use their fan token to buy sports goods.
Which teams have fan tokens in the FIFA World Cup 2023?
With the FIFA World Cup Qatar 2023, football fandom is at an all-time high. Cryptocurrencies and football have become interestingly intertwined, and this connection has made fan tokens go beyond clubs and appear at a national level.
These tokens, called National Fan Tokens, are offered to support the countries’ national team. It is inspiring to know that some of the national teams in the FIFA World Cup Qatar 2022 have fan tokens, and you can profit from the crypto market through their wins, losses, and even championships.
I evaluated the four fan tokens likely to grow during the FIFA World Cup 2022 in terms of technical analysis to understand when and where I should enter the market.
1. Portugal National Football Team (POR) Token
Portugal’s National Fan Tokens are utility tokens built on Chiliz. Cristiano Ronaldo’s presence in the Portuguese national team has drawn many fans from all over the world to the national token of this team.
I am among the fans who became interested in this token because of Cristiano Ronaldo, and using technical analysis, I bought this token at $3.7, and when the price reached $6, I made a profit of nearly $10,000. Nuno Moura, the FPF’s Chief Marketing Officer, expressed that:
“Through this partnership with Socios.com, we continue strengthening our connection with millions of Portugal fans worldwide, who have an active voice and have become part of the decision-making process in many topics relating to the teams.
The launch of the $POR Fan Token allowed us to invent new ways of reaching supporters and interacting with them innovatively, providing fans with exclusive benefits, experiences, and rewards.” Now it’s time to look at the PORUSDT chart and check investment opportunities on this token:
As you can see in the chart, the price has continuously reacted to the support and resistance zones. Selling pressure increased after November 14 and caused the price to fall. I think people at a loss tried to create buying pressure, but this attempt was unsuccessful, and the price experienced a sharp fall again with a minor correction.
In my opinion, considering the shrinking size of the candles and the size of their shadow, we can hope that the price in this area has the potential to grow, and with the positive performance of the Portuguese team, we will see an increase in the price.
2. Spain National Football Team Fan Token (SNFT)
The Spanish National Football Team Fan Token is a BRC 20 smart contract built on the Bitci platform and, like other fan tokens, comes with rewards and privileges for holders. Like the Spanish national football team, this fan token came into action with strength and, of course, saw many ups and downs.
As you can see in the chart below, the Spanish Fan Token has been moving in a descending channel for a long time and is currently approaching the Price Reversal Zone(PRZ) and the bottom line of its channel. Considering the good results that the Spanish national team has achieved in the World Cup so far, it is expected that we will see the growth of this fan token again.
The closer Spain gets to the final stages of the World Cup, the more likely it will experience significant growth. If Spain wins, the fan token of this country will at least rise to the top of the descending channel (more than 250% profit) and may perhaps break its channel.
3. Brazil National Football Team Fan Token (BFT)
If you are a real football fan, then you know the Brazilian national team really possesses that special staying power – meaning, of course, their token is a hit amongst fans. This token was released on Aug 25, 2021, on the Bitci chain, and made promises of extraordinary experiences for all sports lovers around the world.
Brazil is one of the teams with the best chance of winning the 2022 World Cup, and as you can see in the chart, Brazil’s fan token has responded well to the support zone; it’s expected that with each step of the Brazilian football team’s ascent, this fan token will move closer to the Price Reversal Zone(PRZ).
4. Argentine Football Association (ARG) Token
Argentina’s national football team has also presented its official token along with many features and benefits to its fans. ARG is also based on the Chiliz platform, like the Portuguese national fan token.
As you know, Messi plays in the Argentina team, and it is interesting to know Cristiano Ronaldo and Lionel Messi fans both competitively buy the ARG and POR in a neck-and-neck race to increase the value of their favorite fan token.
Argentina’s fan token seems to have lost its support zone after Argentina’s loss to Saudi Arabia, but this may be like a fake break for both the token & team. As Argentina will most likely ascend from its group, this achievement can cause a comeback for the token to return to the support zone.
If Argentina can reach the world cup’s final stages, this fan token price will increase to the resistance zone; investors could make a profit of about 100%.
- Admiral Markets - Overview & Customer Ratings of the Broker
- Swissquote review 2024: should you sign up with this broker?
- FXCM Review - Best Forex Brokers
- Trend Mastery: Navigating Rising, Falling, and Sideways Channels
- Using a Stochastic Oscillator - the Basics
- How To Find Free Trading Signals Services for Novice Traders
Which fan tokens are the best to buy?
The top three fan tokens by popularity are Paris Saint-Germain Fan Token(PSG), Manchester City Fan Token(CITY), and Atletico Madrid Fan Token(ATM). Other fan tokens, such as the S.S. Lazio Fan Token (LAZIO), Santos FC Fan Token(SANTOS), and FC Porto Fan Token(PORTO), have a good market cap and trade volume.
However, the fan token of Portugal(POR), Spain(SNFT), Brazil(BFT), and Argentina(ARG) are trending these days due to the importance of the FIFA World Cup 2022.
Are fan tokens only tradable on the Socios Platform?
Other exchanges support fan tokens, such as Binance, Coinbase Pro, Huobi Global, Bithumb, KuCoin, OKX, and MEXC.
Do only football teams have fan tokens?
No, many sports teams use fan tokens like basketball, hockey, soccer, rugby, etc. Even YouTubers can use fan tokens to boost audience engagement.
How do fan tokens work?
Like many other tokens, fan tokens are based on blockchain and give access to exclusive content and experiences to their holders.
Which fan tokens have the potential to grow by the end of 2022?
Considering the big event of the FIFA World Cup 2022, winning teams such as Argentina, Brazil, Portugal, and Spain make it possible for the fan token of these teams to grow until the end of 2022.
Fluctuations and excitement have always accompanied the cryptocurrency market, which has created trading potential in this platform. Over time, newer types of tokens appeared and involved a wider group of people in this market. Fan tokens that have been around for a short time have gained a lot of fans and gradually found their place among other tokens.
Ronaldo became the first player to be rewarded with a digital token; Manchester city became the first Premiere league team to launch a fan token, and many other platforms like Binance started supporting these tokens.
Their future looks bright with the increasing favor of sports teams in fan tokens. In addition to the functions and communication they create with fans, these tokens are a new source of income for clubs and sports teams.
We should remember that many clubs still need to enter this field, and there is a lot of potential for their growth and development. Finally, I must say that trading in the cryptocurrency market requires special considerations, and you must follow the principles of trading.
Remember not to invest all your money in such tokens because of being a fan and observing asset management. I hope you’ve learned some enlightening information on how to support your favorite teams – and maybe even profit in the process.