Crypto Fan Tokens Explained
Aren’t we all fans of something? While we may vary as to what appeals to us, the passion we hold on to for a few things remain till the very end. In today’s date, we possess various ways through which we can support what we love. However, we may have just seen the biggest advancement of the whole fan support system.
In simpler terms, I’m referring to a new emerging digital asset known as crypto fan token. These new pieces of digital currencies have spread across many industries and fans rather quickly and is a sector that is still growing. As a blockchain enthusiast myself, today, I’ll walk you through all you need to know about crypto fan tokens, their worth, utility and volatility.
What are crypto fan tokens?
To begin with, crypto fan tokens are just your everyday cryptocurrencies, with the exception that they allow investors (fans) to take part in several fan-membership bonuses. These can include simple rewards, merch, voting on team decisions and various fan experiences.
Crypto fan tokens can be used by organizations to create a unique fan experience and also bring about team leadership. Football club organizations are a good example of utilizing these tokens.
Before I confuse anyone, let me make it clear that crypto fan tokens are different from NFTs in the sense that fan tokens are entirely fungible. This also means that fan tokens can be exchanged for club goods, experiences, etc, for example like fiat money. Further, these tokens can form a club community for fans.
Crypto fan tokens do not hold the same underlying value principles as other coins such as Bitcoin. Their value is solely dependent on fans and how much they treasure taking part in club activities and other perks or experiences.
Fan tokens are one of the latest innovations in the crypto and blockchain industry with football clubs such as Paris-Saint-Germain, Juventus and Manchester City being a part of it.
Where do crypto fan tokens exist?
Now that you have taken a look at what fan tokens are, it’s time to dive into where these tokens exist. We have understood that fans purchase these tokens belonging to specific teams, fan communities, or sports clubs.
Fans are allowed to get access to an encrypted ledger via these crypto tokens which provides ownership for exclusive voting opportunities and membership. Acquiring crypto fan tokens allows fans to make influential decisions and also display support for their clubs.
Crypto fan tokens are found on a network called Chiliz. However, they’re not restricted to Chilliz alone. Fan tokens can easily be bought through the CHZ/Chiliz token for various prices.
Not all fan crypto tokens are popular. Those that gain fame can be bought at many centralized exchanges but those who aren’t certified yet have to be bought via a decentralized exchange.
Are Fan Tokens Volatile?
Now let’s explore the nature of these tokens and get insights into their volatility. Before we do, we need to first understand how crypto fan tokens work.
Fan tokens primarily, are like cryptocurrencies and thus, investing in both is considered risky. However, the price for fan tokens fluctuates according to their popularity.
This proves that fan tokens can experience a bull/bearish run just like the average crypto market. This is why fan tokens fall under the category of high-risk investment.
Volatility is a factor that can be either extremely profitable or deficit for all investors. It is observed that even cryptocurrency markets despite having high volumes of exchange can be dry for weeks or months! Even so, their overall profit percentage overtakes the duration of the dry period.
Crypto fan tokens can be seen more as access to fan membership than an investment for most people.
In a nutshell, an average cryptocurrency and fan token share many similarities. However, fan tokens offer investors’ access to take part in important club decisions, merch, etc. Crypto fan tokens as an investment are risky since their price exclusively depends on their demand. They can bring both big profits and losses. As mentioned before, fan tokens too are volatile and rather seem fit as a membership along with benefits.