What are Fan Tokens?
Understand how Fan Tokens differ from a Sorare NFT
When signing the contract with Lionel Messi, PSG gave the Argentine superstar digital tokens of the club. How do these tokens work? How can they change the future of sports? Overview.
The example of Lionel Messi
Lionel Messi's transfer from FC Barcelona to Paris Saint Germain (PSG) made headlines around the world last week. According to Reuters, the soccer star's transfer included a payment in fan tokens as part of the €30 million "signing bonus" offered to the player. The club did not reveal the exact proportion of tokens in its package. "The coins are there to create a link between the fans and the club, and this is the first time we are using them in this way," the Parisians said in a statement. Sign up now!
Fan tokens differ from NFT like the Sorare NFTs. This news is considered by many observers as a great moment in the development of digital assets and sports. The PSG fan token, which trades under the $PSG stock symbol, was introduced in January 2020. While the launch price of the token was 2 euros, the token was trading at around $22 before the announcement of the Argentine player's likely arrival. On August 10, the day the Messi deal was officially announced, the token's value jumped to $58. It has since fallen back to $34 (see chart below) for a market capitalization close to $100 million.
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Can fan tokens be used like a Sorare NFT?
Nevertheless, fan tokens cannot be used for games like fantasy leagues or any other game. Thus, players on Sorare tend to have much more fun than with fan tokens.
We recommend you to read our articles on Sorare Coin, Sorare Crypto, Sorare NFT or What is Sorare
Fan tokens began to attract attention in 2020 after the launch of the FC Barcelona soccer club token. Since then, they have experienced tremendous growth. But this concept is not only specific to soccer clubs. According to the website socios.com, other teams that have launched or are about to launch their own fan tokens are AC Milan, Inter Milan and AS Roma in Italy; Arsenal, Aston Villa, Manchester City in England; Barcelona and Atletico Madrid in Spain; Aston Martin F1 Team, Alfa Romeo Racing Team and the UFC. Sign up now!
What is a fan token?
A fan token is a form of crypto-currency that allows its holder to access a range of sports club-specific membership benefits, including voting rights on club matters, club rewards and experiences.
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What is the difference between fan tokens and a Sorare NFT?
Fan token are different from NFTs, like So rare NFTs.
Unlike non-fungible tokens (NFTs) in music and digital art, fan tokens are fungible. This means that tokens can be redeemed for sports club merchandise, rewards and other VIP experiences. They also allow holders to have a say in mostly minor decisions related to their clubs and play an important role in strengthening the fan community.
Like crypto-currency and Sorare NFTs, these tokens are built on the blockchain and can be traded on an exchange. These fan tokens are created by a crypto platform called www.socios.com.
How does a fan token work? What are the advantages for the fans?
Let's first go over the definition of a "token". Although there is no single classification, tokens generally fall into two classes: Utility Tokens and Security Tokens.
A "Security Token" is a title to an asset or a right to an income stream or dividend. In terms of economic function, these tokens are comparable to stocks, bonds or derivatives, and should generate a profit.
Utility tokens provide access to the goods and services of a project that has been launched or will be launched in the future. They can be used as a type of discount or premium access to services (think of loyalty points offered by an airline). Many tokens tend to be used specifically as a funding mechanism for businesses.
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The Chilliz platform
The chiliZ token is the first and most prominent of the fan tokens that has sparked an explosion of new tokens like the Manchester City Fan Token, AC Milan Fan Token, Juventus Fan Token and many others. chiliZ ($CHZ) is a "Utility Token" on the Ethereum blockchain that serves as the digital currency for the chiliZ platform and Socios.com. Indeed, it is this platform that launched the "fan tokens".
The idea of Socios, and its CEO Alexandre Dreyfus, a French entrepreneur and co-founder of Winamax (online poker and sports betting site), takes as its starting point the lack of impact fans have on their favorite sports club. To address this lack of fan influence and engagement, they are launching the Socios.com app in 2019. The principle is as follows: when visiting the app, the fan will be able to buy some chiliZ, the official currency of Socios. When the user has this currency, they can exchange it for what they call "fan tokens". These tokens (coins) are specific to a team or club. They are finite digital assets that provide access to an encrypted record of ownership of voting and membership rights. As mentioned above, they provide access to a number of privileges in exchange for the token in question.
Clubs that collaborate with the socios.com website have the possibility to offer a "fan token" (FTO). An FTO is similar to an initial coin offering (ICO) in crypto trading. The fan token dispenser announces the start and end date for the distribution of the tokens, as well as their opening price. When the start date arrives, fans can acquire the tokens with cash or existing crypto coins they may already own on the exchange.
The benefits conferred on token holders (voting rights, rewards, experience, etc.) allow fans to feel more involved with the club they support. In most cases, the more tokens a fan has, the higher they climb the fan ladder on the platform. Eventually, they can unlock the biggest VIP benefits.
Are Fan Tokens riskier than a Sorare NFT?
The chiliZ token is the first and most prominent of the fan tokens that has sparked an explosion of new tokens like the Manchester City Fan Token, AC Milan Fan Token, Juventus Fan Token and many others. chiliZ ($CHZ) is a "Utility Token" on the Ethereum blockchain that serves as the digital currency for the chiliZ platform and Socios.com. Indeed, it is this platform that launched the "fan tokens".
The idea of Socios, and its CEO Alexandre Dreyfus, a French entrepreneur and co-founder of Winamax (online poker and sports betting site), takes as its starting point the lack of impact fans have on their favorite sports club. To address this lack of fan influence and engagement, they are launching the Socios.com app in 2019. The principle is as follows: when visiting the app, the fan will be able to buy some chiliZ, the official currency of Socios. When the user has this currency, they can exchange it for what they call "fan tokens". These tokens (coins) are specific to a team or club. They are finite digital assets that provide access to an encrypted record of ownership of voting and membership rights. As mentioned above, they provide access to a number of privileges in exchange for the token in question.
Clubs that collaborate with the socios.com website have the possibility to offer a "fan token" (FTO). An FTO is similar to an initial coin offering (ICO) in crypto trading. The fan token dispenser announces the start and end date for the distribution of the tokens, as well as their opening price. When the start date arrives, fans can acquire the tokens with cash or existing crypto coins they may already own on the exchange.
The benefits conferred on token holders (voting rights, rewards, experience, etc.) allow fans to feel more involved with the club they support. In most cases, the more tokens a fan has, the higher they climb the fan ladder on the platform. Eventually, they can unlock the biggest VIP benefits.
Join Sorare now and win a free card thanks to the partnership between Sorare and Sorare Academy