The cryptocurrency sector is growing support from an unusual arena. a number of football teams globally have began introducing their own fan tokens in recent times, making attempts to augment their revenue amid pandemic-driven security measures.
Amongst the top names to have debuted their own tokens are England’s Man City, French Paris Saint-Germain (PSG), Spanish side Barcelona, and Italy’s AC Milan, which are a few of the richest football clubs in the world.
Further, the Spanish national football team has also said that it plans to introduce a similar crypto framework. South American Argentina too has jumped on board.
Fan Tokens are bit distinct from conventional cryptos, like bitcoin or ethereum. whereas fan tokens do exchange on variety of different exchanges, in addition they allow fans to participate in a club’s decision process, partake in assorted promotional advertisements, gameplay, votes and much more. simply define, it helps make fans a stakeholder in the club’s key decisions.
One of the top promoters of such coins is tokenized sports and entertainment exchange Chiliz, which has struck no less than 24 deals with sports teams. “Fan Token owners can access benefits including voting rights in club polls, VIP rewards, ‘super-fan’ recognition, club & sponsor promotions, games and chat forums,” Chiliz wrote in a post on Medium.
The company uses its rewards platform, Socios.com, to provide access to these special rewards programmes and other promotional campaigns. AC Milan, Manchester City, Barcelona, PSG and Juventus have all signed with the club. City is also partnering with a digital entertainment company called Animoca, to create blockchain-based games.
According to a report by Reuters, the total market value of 21 publicly-traded tokens issued by Chiliz was around $260 million as of June 13. The exchange showed the Barcelona token trading at around $50 right now, while Manchester City and PSG’s tokens were trading at $38 and $48, respectively, at 6pm Indian Standard Time (IST) on June 16.
