The Rise of Fan Tokens in the Sports World
The launch of Socios and Chiliz in the crypto world has given sports enthusiasts a new way to connect directly with their favorite teams. Chiliz developed the Socios platform, based on its blockchain, with the Chiliz token serving as the exclusive currency. As a result, the CHZ token has become highly sought after in the sports industry. It is used to purchase fan tokens, granting fans exclusive content and opportunities to build a closer relationship with their teams. Chiliz links monetary benefits to sports clubs through tokenized voting rights.
Fan tokens allow fans to participate in decision-making processes through smart contracts, with teams determining how much influence fan token holders have. Fans can vote on various matters, such as jersey designs, player acquisitions, manager choices, and more.
These fan tokens extend beyond sports teams, encompassing leagues, associations, and individual athletes. They encourage deeper fan engagement, especially in cases where geographic limitations may prevent direct involvement. Fan tokens also allow fans to vote on changes to league and association logos, enhancing the connection between fans and their sports’ ecosystems.
Fan Tokens as Tradeable Assets
The greater the market activity surrounding a fan token, the more valuable it becomes. As fans realize the power these tokens hold in influencing key decisions, demand increases, driving up their price. A notable price surge occurred when Lionel Messi, widely regarded as one of the greatest footballers, signed with Paris Saint-Germain Football Club. This development further motivates fans to hold the token, as they can now benefit financially from supporting their favorite teams. In addition to voting rights, fan tokens offer VIP access and can be traded due to their fungible nature.
Several prestigious sports teams have created their own fan tokens, including Atletico Madrid, Barcelona, Manchester City, AC Milan, and Juventus. The Cleveland Cavaliers represent basketball with their fan token. Recently, Leicester Tigers and Harlequins have also launched their fan tokens, with many more sports likely to follow. These tokens are becoming an integral part of modern sports fan culture, despite the inherent volatility of cryptocurrency.
NFTs: A New Digital Collectible Market
Sports NFTs offer teams and athletes the ability to create unique, verifiable digital assets on the blockchain. These digital collectibles hold value and can be traded by fans. Some teams even provide financial incentives for owning digital assets featuring every player. The USA’s Baseball League, for example, enjoys popularity through fans collecting all-star cards.
Crypto’s Role in the 2022 World Cup
The FIFA World Cup, which kicked off in Qatar on November 20, 2022, is one of the most anticipated events globally, taking place every four years. This year, one of the major headlines is the official sponsor: Crypto.com. This partnership is expected to boost crypto awareness and adoption worldwide.
Crypto.com’s branding is visible across various stadiums during the tournament. Additionally, the exchange launched a special NFT collection ahead of the event. In partnership with Visa, Crypto.com hosted an auction featuring iconic World Cup goals scored by legendary players. Winners of the auction received high-quality prints signed by the players. Visa also allowed fans to create their own NFTs during the tournament at the FIFA Fan Festival.
