Fan Tokens are getting popular but do they deserve the hype?

Allover Fan tokens of different sports teams have kept market capitalization of more than $312 million

Recently, Fan tokens have seen a jump as more and more clubs and sports teams are getting indulged. It’s been seen as a good opportunity by proponents and crypto enthusiasts who look at the collaboration between tech and sports as a positive approach. 

On the other hand, opponents criticize the way and think of it as another medium to make rich clubs richer by looting the fans in the name of Fan tokens. 

Fan tokens meant to give extraordinary utilities 

Fan token defines itself as a utility token that provides the holder, who might mostly be a fan, accessibility to the membership perks. Those perks like exclusive promotions, sports events or entertainment circle invitations, merchandise, etc., were earlier given to premium members or fans of the club now available to access by a fan having Fan token.

On top of that, these fan tokens give authority to fans holding them to vote on decisions of minor clubs, including jersey designs, goal music, and sometimes even participating players in certain games. Possessing a fan token can also give a chance to unlock VIP rewards, VIP seats during tournaments, a chance to meet and greet players of the club, and many other unique gifts. And it’s like more tokens you hold; it will give you more access and benefits. 

Some football clubs have plans regarding NFTs of football club players, and fans with fan tokens might also get early access to them. 

With so many opportunities comes criticism too

So as Fan tokens are being promoted to have so many benefits for fans but yet it’s also important to look at the other side. Observing closely, it came to know that fan tokens have turned out as an opportunity to raise funds for football clubs that do not involve substantial financial risk nor any change in their corporate structure.

It would not be possible for the clubs with traditional ways like bank loans or private equity.

Additionally, fan tokens get famous on social media, give football clubs an international appeal, and strengthen their digital media presence. But there has been controversy around fan tokens. For instance, take the incident of banning fan tokens from Arsenal Football Club promotions by the UK’s advertising regulator alleging the club of misleading investors. 

Moreover, it’s not like all around are supporters of the fan token concept. The Borussia Dortmund ultras group that goes by the name The Unity protested against the fan tokens outside the stadium and had banners stating, ‘stop marketing craze, tamp down fan tokens.’ Another incident was when the Homesdale Fanatics group of Crystal Palace supporters also criticized and hosted the banners saying ‘morally bankrupt parasites unwelcome so does socios. 

Still, it’s an undeniable fact that crypto and football convergence is an interesting overlap that will benefit both industries and their users and fans.

Sports events are one of the most powerful, most influential, and most effective platforms for marketing and advertising. When used correctly and with a strategic approach, the potential results can be phenomenal because of its reach worldwide.

Thinking of the same various cryptocurrency exchange and trading platforms and firms have collaborated with many sports teams and clubs lately. Football has been the most popular of all, and the obvious highest number of sponsorship deals by crypto firms have been made with football clubs. 

ALSO READ: The ASA bans advertisements on crypto-based fan tokens by Arsenal Football Club

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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