In the era of cryptocurrencies, their influence permeates all aspects of our lives, with sports being no exception and perhaps one of the spheres where the interaction between fan communities and their clubs is best refined, thanks to the innovative concept of fan tokens.
These digital assets are reshaping the traditional perception of fans as passive spectators, transforming them into active participants within the ecosystems of their favorite projects. This piece aims to delve into the essence of fan tokens and the interaction of fans with their communities.
History and Essence of Platforms
Speaking of fan tokens, it’s crucial to mention the leading player in the market – the socios.com product. Founded in 2018, it has released over 60 fan tokens for various sports categories, including football, basketball, and even esports. The primary blockchain platform they utilize is the Chiliz Blockchain, an Ethereum-based blockchain specifically designed for developing fan ecosystems and token issuance.
Interaction between fans and their favorite sports clubs happens as follows: users register on the platform and gain access to an internal dashboard, where they can purchase fan tokens of their beloved club. Subsequently, token holders participate in club activities—mostly symbolic. This could include voting on choosing a third kit for the season, voting for the best player of the match, or exchanging tokens for the club’s merchandise. Such an approach fosters a sense of community and makes fans more engaged in the events of their favorite clubs.
Apart from Socios, another platform that conducted a listing on its native contract was Binance. In this case, the listing took place not on the Chiliz contract but on Binance’s native BNB contract. The functionality remains unchanged from what Socios offers—clubs decide what bonuses they can offer token holders, and the listing company provides its platform and blockchain for this purpose.
Trading Specifics
In general, fan tokens do not differ from regular cryptocurrencies, of which they are a subtype. Therefore, besides the emotional attachment, including financial commitment to a favorite club, fan tokens function as tradable assets on exchanges.
One crucial aspect to consider when trading is the market capitalization of the chosen fan token. Compared not only to market whales but even to the vast number of altcoins, the overall supply of tokens, even for prominent football clubs like Juventus or Barcelona, is relatively low. This contributes to significant price volatility and limits the amount one can comfortably trade without becoming a market mover for the token. Thus, it’s recommended to trade this asset with modest sums.
Within our trading product “Burvix Traders,” we’ve developed and tested strategies for several tokens, including JUV, ATM, ASR, OG. All of them demonstrated consistent profitability over the historical period of 2023, hovering around 100%. We recommend trading with a maximum sum of $1000, divided into several iterations to minimize the impact on the market. It’s crucial to consider the risks, as this type of asset is not stable for long-term investments. The main concept revolves around supporting a favorite club and engaging in its activities. Nevertheless, this market situation doesn’t hinder the combination of pleasure with utility: cheering for a beloved club and simultaneously earning profit from trading its fan token.
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