Football Fans Are Ready to Spend on Club Crypto Tokens

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Football enthusiasts that support some of the biggest football clubs in the world have spent huge sums of money on the trending football club crypto tokens. The present of the football industry is being reinvented with the help of the new world trends.

The game is about passion. Football fans spending millions on club crypto-tokens are waiting to utilize all that money to show that they love their team. The passion and love have been the huge foundation of the business side of soccer. It is how the groups make money – through selling kits, tickets, merchandising, etc. A club’s income sources have not been different for a long period. However, fan tokens (FT) are changing this. They are bringing football marketing onto a whole new level.


Cryptocurrency is the Future

Blockchain technology is one of the new ways to change the whole world and not only football. Thanks to the tech, supporters have witnessed a new type of money: cryptocurrencies. Most individuals believe cryptocurrency is the future. Not long ago, Striker David Barral made history when his transfer from Real Madrid was via Bitcoin. Although this was the first one, it will not be the last. As more groups adopt the system, we will witness hundreds of other deals being done in crypto.

Organizations have discovered that they can use this technology to rethink how they can connect with local individuals and enhance profits. Even in the gambling industry, special kinds of sites which are called dash casinos encourage their members to use crypto assets. The transactions are fast, secure, and more flexible. Dash casinos are created as a new safe and user friendly experience for the players.

While most have come across popular digital currencies, some come with a different name: fan tokens. Any fan can buy them by using real cash via an app. The fan will get a specific amount of FTS that they can use like traditional cash. 

The price can change with time. After a certain period, partners can release more tokens at higher or lower prices. The concept is similar to that of stocks. However, it is known as a token fan offering in this context. And like in the stock exchange, followers can exchange or sell tokens.

Club-Specific Crypto 

According to BBC news estimates, 24 different clubs in major European leagues are considering adopting virtual currencies or are already using them. English Premier League sides have also not been left behind. Approximately eight sides are on board. 

Sides like Manchester City can sell digital collectibles called NFTs or non-fungible tokens. Most of the clubs offering fan tokens partner with a firm known as Socios, which organizes the first sale and the later trading activities. According to the firm, it has sold approximately $300M worth of virtual coins via its app. However, they cannot specify exactly how much goes directly to the teams. Interested persons need to convert their cash into FT, known as Chiliz.

bitcoin

There are other platforms such as Bitci and Binance that offer tokens akin FTs. However, people should be aware of scammers selling controversial crypto.

The organization makes profits from trading fees and takes a portion from the sales of every token, approximately 50%. The team takes the rest. After this, FTs are released in batches after specific periods until the set limit is met. The process has a mechanism that prevents token hoarding. For instance, a team can decide the maximum number of votes a loyal member will get regardless of how many FTs they have. 

Unsurprisingly, less popular leagues like the Indian League have also been part of the movement. Franchises such as Royal Challengers Bangalore, Punjab Kings, and Kolkata Knight Riders are also joining the trend. Other sports like MMA and motorsports have started shipping their personalized FTs.

Be Careful Before You Leap!

Mostly, FTs are marketed with advantages like rewards, promotions, and discounts at the stadium shop. For instance, a team like Juventus allows token holders to decide a song that will play after a goal. The average football fan will love such pros.

Although the process is gaining massive popularity, the ride has had some challenges. For example, a few months ago, an advertising regulator in the UK banned two promos for fan tokens from Arsenal FC, claiming that they were misleading attendees over the truth about buying FT. 

Are There Significant Perks?

When we tokenize a specific part of the sports industry, we enable the consumers to interact and be part of the game. Fans of various football teams and sports want to participate in the activities and success of the fanbase – from designing jerseys to suggesting players’ transfers. Holders of the tokens have that power.

Offering FTs can help reach more fan bases, especially in places like Asia, where crypto is common, and football’s popularity grows rapidly. Chiliz is estimated to have a crypto market value of up to $1.3B. The company has made hundreds of millions in the past years.

In the future, Football supporters will be able to use FTs for more things, including buying snacks during a game or buying merchandise directly from the sponsor’s site. There is a vast range of benefits for organizations.

Conclusion

The fan token market is highly volatile and buying such assets is always a high-risk move. However, NFT, Cryptos, and other digital currencies are daily becoming part and puzzle of every industry. Regulators and lawmakers are monitoring the situation closely.

Sports enthusiasts should know that FTs allow them to participate in the decision-making of favorite clubs and interact with other members. With them, you have a higher chance of earning monetary rewards as you continue to entertain yourself by cheering and watching your favorite athletes.  

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