For both people and businesses, the rise of cryptocurrencies has opened up a world of opportunities. People can invest 24 hours a day, seven days a week in the crypto world, and they can expect big returns. They can transmit money across borders without paying a high commission or losing money value in currency conversions. Additionally, cryptocurrency has made it possible for sports teams, celebrities, and businesses to introduce their own tokens and entice sponsors or endorsements from their fan bases through merchandise purchases and investments.
What Are Fan Tokens?
They function as a type of cryptocurrency that entitles owners to many fan-related membership benefits, including the ability to vote on decisions regarding incentives, goods, and club policies. Sports teams, music groups, and other organizations can use these. Fan tokens resemble non-fungible tokens (NFTs) in some ways, but there is a significant distinction.
Fan tokens are completely interchangeable, in contrast to NFTs, which grant ownership rights through the use of digital copyright that cannot be swapped. This implies that fan tokens can be easily swapped for the use of the goods or services provided by the company that created them. Fan tokens also foster community and identity by bringing people together.
Owners of fan tokens can choose which team’s outfit to wear. Additionally, they can receive merchandise or game tickets as an incentive. There are countless options. Teams that provide these tokens do so to raise interest in and knowledge of their groups.
How do they work?
Fan tokens are like cryptocurrencies in that investors may buy and sell them. A fan token’s price is typically established by the seller and is liable to change based on the supply and demand for the tokens. They can be purchased from companies that have launched them as well as from online exchanges.
The most popular fan token platform at the moment is Socios. Attempts by other blockchain companies to enter this cryptocurrency market have mimicked its business model. To mint fan tokens on a blockchain, teams enter into deals with these companies.
The name Socios and the core of its idea are derived from the Spanish term for supporters of fan-run teams like Barcelona and Real Madrid. Supporters may use the app to vote on issues like what to name a practice facility or which music should be played at games after a goal by purchasing fan tokens, which cost £2. Since its 2019 introduction, the app has received 1.2 million downloads, indicating a rapid uptake. It claims to have 900,000 active users. The incentive for teams is 50/50 parts of the proceeds from the sale or trading of their tokens, which could result in multi-million-pound awards for several years as additional tokens are released. Chiliz developed the Socios.com sports fan engagement platform which is built on the Chiliz blockchain infrastructure & uses $CHZ as its exclusive on-platform currency.
A Fan Token Offering (FTO) is planned after the agreement. At the time of the FTO, people can purchase these fan tokens for a set price. Following the FTO, fan tokens’ value will fluctuate according to demand, just as that of other cryptocurrencies. A team’s token can be in high demand if they are contending for the championship. A team’s token value may decline if it is not doing adequately. The more you’re active on the Socios App, the greater your chances for incredible prizes. VIP invites, signed merchandise, meet-and-greets with fan favorites & club legends.
How to create a fan token?
You have to build a platform using a special cryptocurrency, that gives sports teams a way to communicate with their devoted followers. A certain number of tokens are issued by sports franchises, which can then be found or bought. If you possess one, you are entitled to significant benefits. These benefits include things like access to specialized merchandise, VIP seating at sporting events and concerts, as well as the ability to cast votes in surveys that affect club policy. Thus, token holders actively participate in determining the team’s destiny.
The decentralized sports app has to be available through Google Play Store for Android and the Apple App Store for iPhones. Keep it beginner-friendly and easy to set up, even for those unfamiliar with blockchain technology.
Fans can purchase fan tokens using an app, which grants them access to voting in areas the club chooses with increasing degrees of importance. The platform enables polls and other elements suggesting more obvious influence once fan tokens have been purchased. You may purchase and sell tokens on the Fan Token market, as well as keep track of impending token drops, using the app. The app’s users should also be able to vote in team polls, compete in trivia contests, and have VIP access to team events.
Partner with teams around the world which offers credibility to the app. Encourage partner clubs to give away free fan tokens to their members and season-ticket holders. In the initial release of the fan token, teams get a majority share of the transaction. They then receive payments for fan tokens related to their club.
Make a launch plan. Announce your token launch on social media and get fans to purchase your token. Increase the benefits to the community for token holders. Use social media to introduce your token, make a YouTube video and send the newsletter to your subscribers introducing your fan token. After the introduction, share it. Allow users to unlock VIP rewards, access exclusive promotions, play games, and gain super fan recognition.