There’s good reason to believe that fan tokens could be your next best investment. To be clear, fan tokens aren’t a form of cryptocurrency—they’re digital blockchain assets that you can buy with a unique cryptocurrency called Chiliz ($CHZ). In turn, they give people exclusive access to engage with the team you’re supporting. Generally, they offer perks like being interchangeable with fan merch, rewards, exclusive promos, VIP experiences, or participating in official polls.
However, you can also opt to hold onto them and convert them back into CHZ when the crypto's value is high. Fan tokens themselves can also be traded. So, monitoring the value and demand for a certain sports team's fan tokens can also net you good returns if you know what tokens are worth investing in.
But if you're genuinely wondering whether it’s worth pursuing these digital assets or not, here are some reasons why you should consider investing in fan tokens.
The increasing popularity of fan tokens
Even as the world begins to return back to normal, the popularity of fan tokens isn’t waning — as proven by its increasing sales. In 2022, Be In Crypto reports that fan token sales rose by 127% to $1.5 billion. By March 2022, sales reached even higher at $3.5 billion. This is in large part due to sports rising even further in popularity because of their wider accessibility. These days, it’s much easier to follow sports teams’ activities through the internet. Social media allows fans to engage with their favorite teams on a more personal level.
Greater interest from sports teams and clubs
Because fan tokens are skyrocketing in sales, more and more teams and sports
clubs globally are seeking to venture into offering fan tokens. Chiliz’s fan token platform Socios reports that tokens will soon be listed from more sports teams,
including Premier League club Crystal Palace, Mexican football club Atlas FC,
and the Italian National Team, demonstrating the global appeal of these digital
assets. This continues to set an optimistic precedent that more and more teams
and clubs will start offering these assets as well. A bigger fan token selection
means more interest in the market, which can only be good news for traders and
investors.
Further integration of blockchain technology in sports
In the sports world, teams and clubs will always be looking for ways to further
their relationship with fans. And with digital assets becoming more and more
widely accepted in modern-day sports culture, it’s very possible that fan
tokens could be a key component of the fan experience.
SportsTravel
Magazine outlines how blockchain technology and cryptocurrencies have been adopted by the sports industry for
fan engagement, game tickets and merchandise, and even payouts. MLB, the NBA,
and the NFL, for instance, have already begun selling crypto-collectibles as
the digital counterpart of physical baseball cards and bobbleheads. NBA teams
like the Sacramento Kings and the Dallas Mavericks have also incorporated
blockchain technology to sell game tickets and merchandise, allowing fans to
pay with cryptocurrencies.
As blockchain technology accelerates its adoption in sports, fan tokens are
likely to become a staple in sports culture, making them a worthwhile
investment in a couple of years.
Outlooks for the fan token market are looking largely optimistic as a financial
opportunity for investors. As more and more sports teams, businesses, and fans
look to blockchain technology to innovate the industry’s culture,
sports-related digital assets like fan tokens can increasingly heighten in
demand. If you’re looking for your next big investment, fan tokens might be
just the thing.
If you’re venturing into the world of crypto, you can check out our website for
some fundamental tips like our
article ‘How I Made the Mistake of Sending Bitcoin to an Ethereum Wallet
Metamask’.