What Are Fan Tokens?

Digital Currencies, otherwise known as cryptocurrencies have taken a new wave in the digital world. General ideology about crypto coins depicts that each listed coin serves a unique purpose. Crypto coins are not limited in their purpose as they all aid digital transactions. However, some coins serve a different purpose for a particular cause. These sets of coins are listed as Fan tokens.

Fan tokens, like every cryptocurrency, represent a distinct brand or identity. Fan tokens grant holders personal access to the brand they represent. Possession of a fan token allows the holder to contribute to important decisions, entitled to rewards and bonuses, and also benefit from numerous experiences.

About Fan Tokens

Fan tokens are mostly listed by clubs, musical record labels or groups and organizations that deal with digital transactions. As the name implies, any fan in possession of this token becomes a key member of the organization and is further treated with due advantage and rewards. This token can be used to complete online exchange and transactions even with other coins like- Bitcoin and Ethereum.

Characteristic feature that distinct fan tokens from other crypto assets is that they are totally fungible and can be exchanged with any digital asset or coins. On a simpler note, they operate like fiat; hence, grants any holder a chance to benefit from VIP experiences and decision-making process of the club or organization.

Every club looks forward to listing their fan token, as it gives them an edge over competitive clubs. Like every other digital coin, fan tokens are encrypted with safety measures and smart contracts. These safety measures prove that the club is more than interested in protecting the interest of their investors. There is no risk of theft or unauthorized third-party hack of fan tokens.

In this modern age, there are numerous fan tokens due to the increased number of prominent clubs and fandom. Common fan tokens in the crypto world are those listed by- Juventus, AC Milan, and Manchester city. However, it is imperative to mention that these fan tokens originated from the very first token- Chiliz token (CHZ).

The Chiliz token, as the first prominent fan token, paved the way for innovation of other tokens by clubs. This expansion is due to diversity in the blockchain; which brings about differing highs and lows in the crypto market.

How do Fan Tokens Operate?

As earlier mentioned, fan tokens serve the same transactional purpose as major cryptocurrencies, although they represent a particular club or brand. The exchange of these tokens with other coins is determined by the selling price listed by the seller or club. However, this price can be affected by how much in demand it is in the market and general market fluctuation.

There is no limit to how much/volume of fan token an individual can possess- as long as it is purchased through legal protocols. A fan token subjects the owner to the decision-making process of the club; this automatically makes them an investor in the club and hence treated as one. Holders of these tokens can contribute their point on matters regarding the club like;

• The Club Jersey/Merch Design: holders can give their take on the design used by the club in matters of the jersey and other clothing accessories that represent the club. They can decide on patterns and colors to adapt- as part of the process for the club’s publicity and to entice potential investors.
• MVP/VIP Rewards: every fan token holder is treated as a registered member of the club. This gives them an entitlement to VIP/MVP treatment and offers. They are treated with merits aside from regular unregistered fans. Sometimes they are granted access to official club meetings and celebrations.
• Match Venue: match are usually fixed in locations that suit the demand of the fans. Therefore, as a holder, you are allowed to dictate the match location as it may suit your interest. Also, ideas on how to improve the venue are highly welcomed by the club.
• Ticket Allocation: it is no longer strange that most clubs or social organizations make a huge profit from the number of tickets sold. Holders of fan tokens gain easy access to purchase tickets for any activity regarding the organization. Fair enough, they are treated with more respect as opposed to regular buyers or fans.

All these perks make owning a fan token worthwhile. In a way, these prove how much the holders are interested and elated by the performance of the organization. Not only do fan token holders feel more as part of the club, but also gives them a chance to gain more profit off the club. Fan tokens have a high tendency to increase in value, hence owning one is profitable for the owner.

What Is Chiliz?

Chiliz is a blockchain platform that is primarily focused on the sports and entertainment industry. The Chiliz platform allows fans of sports teams and other entertainment properties to engage with their favorite brands in new ways, such as by buying and trading digital assets such as fan tokens. The Chiliz platform is built on the Ethereum blockchain and it utilizes the ERC-20 standard for its fan tokens, which can be easily bought, sold, and traded on the platform’s own exchange and other exchanges that list it.
One of the key features of the Chiliz platform is its Fan Token Offering (FTO) mechanism, which allows teams and organizations to launch their own fan tokens in a crowdfunding-like process. This allows fans to buy into their favorite teams and organizations at an early stage, and it also generates revenue for the teams and organizations that launch the tokens.
The token CHZ is used to facilitate various activities in the Chiliz ecosystem, such as trading fan tokens and participating in fan engagement activities. Additionally, holders of CHZ can also access exclusive promotions, offers and events.

How To Purchase Fan Tokens?

Buying a fan token is not an arduous task and can be easily completed by following the laid down instructions on trusted platforms like Binance or Chiliz. Fan tokens operate on a network chain known as- Chiliz Network. Most fan tokens are available on this network and Socios.com network as well.

Note that, fan tokens depict a particular club or organization, hence cannot give you the same right on another club. These tokens are unique digital assets that grant access to a membership and voting rights, encrypted for safety.

To purchase any fan token, visit chiliz.net or socios.com to buy any volume of fan token of your interest. Chiliz (CHZ) network serves as a platform for exchange of fan tokens listed on the network. However, some fan tokens are not certified yet to be listed on centralized platforms. Tokens like this are traded on decentralized platforms like- PancakeSwap. Trading on decentralized platforms requires you having a cryptocurrency to swap.

Steps to Buy Fan Tokens on Chiliz Network

1. Visit their official website- chiliz.net or download their mobile app (available for both android and iOS devices).
2. Verify and complete your registration on the platform.
3. Go to ‘Wallet’ and purchase any volume of CHZ.
4. Click on ‘Market’ and select any fan token of interest.
5. Purchase the fan token with the CHZ currency in your wallet.

The purchased fan token is automatically added into your wallet. For further transactions, it can be transferred to another wallet or exchanged for another coin.

Are Fan Tokens a Good Investment?

Fan tokens can provide a new way for fans to show their support and connect with their favorite teams and organizations, and they may also offer exclusive benefits such as the ability to vote in polls, access to exclusive content, merchandise discounts and VIP experiences. It is important to consider the fact that, unlike traditional investments, fan tokens do not represent equity or shares in the team or organization issuing them, they are mostly considered as utility tokens, with value derived from their utility and benefits. Overall, fan tokens are a relatively new and relatively untested investment. While they can be exciting and offer unique benefits, they come with a high degree of risk. As always, it is important to be well-informed before proceeding with the purchase.

Conclusion

Fan tokens as part of cryptocurrencies are worthy investments in this digital age. Although, many investors are discouraged by the high-risk involved; however, their recognition till date proves how viable and secure these coins are as an investment plan. The market is quite volatile and prices fluctuate sometimes. This does not change the fact that you can make a fortune if the price increases overnight. To prove your loyalty to your club/organization, purchasing their fan token is a smart decision for you.