Lionel Messi’s transfer from FC Barcelona to Paris Saint-Germain (PSG) was very historic in two ways. For one, no one expected the football legend to leave his home club. Second, PSG paid Messi a one-time bonus of € 1 million in the form of PSG fan tokens.
What is a fan token?
Fan tokens are a form of cryptocurrency that gives fans the right to vote for the operation of the club. Fans will also be offered access to special products, promotions and games, among other benefits. For example, in the first poll conducted by PSG, fans were able to vote for a moving message on the player’s armband.
Galatasaray allowed fans to choose which song to play when the team entered the field, and Juventus allowed fans to choose which song to play when the team scored a goal. In the first poll by Barcelona, fans can choose the mural design used to decorate the Camp Nou dressing room. There are also many other such voting rights granted by the club.
Cryptographic fan tokens can also provide financial benefits. As the demand for tokens increases, so does the price. Fans can sell tokens at a higher rate than the purchase price to enjoy capital gains. Just as PSG fans won after Messi moved to the club.
Various fan tokens
PSG fan tokens have a market capitalization of over $ 53 million and Manchester United fan tokens have a market capitalization of approximately $ 42 million. Atletico Madrid’s fan tokens are in third place, with a market capitalization of approximately $ 33 million, just above FC Barcelona’s fan tokens with a market capitalization of over $ 27 million.
Fans can easily buy digital tokens for their favorite teams from several exchanges online. However, this only applies to large clubs. To buy fan tokens for clubs with smaller issuance sizes, simply use the Decentralized Exchange (DEX). Cryptocurrency is required to purchase fan tokens from decentralized exchanges. The price of these tokens is determined by the seller and fluctuates based on supply and demand.
Fan token-based blockchain
The blockchain technology used to program fan tokens can be used in many other ways. Benfica, a football club, allows fans to purchase goods by paying in cryptocurrencies. There are also many Series A teams that have contracts with various blockchain platforms to manufacture licensed digital cards for players. As the fan token market matures, clubs even plan to pay employees salaries in the form of digital tokens.
Fan tokens help fans engage with their favorite clubs. However, it is important to understand that investing in crypto is risky and not all investment opportunities are suitable for all investors. Therefore, before you buy a fan token, you need to do some research to understand your investment objectives and risk motivation.
(Edited by: Abhishek Jha).