All across Europe, soccer teams are increasingly using fan tokens to raise funds and increase fan engagement.
Successful Use of Fan Tokens
The fan tokens created by soccer teams in Europe are powered by the blockchain. One major team that has been using blockchain-powered soccer fan tokens is Barcelona. The giant Spanish soccer club has raised $1.3 billion within two hours after the release of its fan tokens on June 22, 2020.
Barcelona released 600,000 crypto tokens with each token selling for $2.20. With the tokens, soccer fans will have exclusive voting rights in various polls regarding the club. Besides that, they can win rewards such as watching games in the VIP section as well as meet with the players.
According to the CEO of the Socios.com platform, which is behind the creation of the fan tokens, three decades ago, people thought the internet was all about sending emails. However, the internet has opened up millions of opportunities for people around the world. He compared this to blockchain technology. According to him, the technology could be used to create innovative products that did not exist before.
How the Fan Tokens can be used
Besides Barcelona, other major teams in Europe that have fan tokens are PSG, AS Roma, Atletico Madrid, and Juventus. Besides using the tokens to vote on issues, the owners of the tokens can trade them on the open market.
Market forces, based on the performance of the team and various actions, will determine the value of the tokens. For instance, if a team signs Neymar, they could see the value of their tokens rise. If a team is in the relegation zone, the value of its tokens could drop drastically.
On June 24, 2020, another batch of tokens was released. According to Socios.com, the value of the tokens rose by 200% within five minutes of trading with a $1 million trading volume in the first six minutes. Holders of the tokens can sell their tokens using the Chiliz cryptocoin via the Chiliz.net platform.
The main draw for most clubs using fan tokens is increased fan engagement. Most major soccer clubs have a global fan base. However, 99.99% of fans are not able to attend matches or even the city where the club resides.