Upgrade your sports experience with a fan token from your favorite team.
More than 60 organizations around the world, including Formula 1 racing, soccer teams, and e-sports teams, use fan tokens to interact with enthusiasts from all over the world.
But what exactly are fan tokens? What are the benefits of owning them? And, even more importantly, how can you get involved? In this article, we’ll answer these questions and introduce you to the ever-expanding world of the fan token.
What Is a Fan Token?
A fan token is a digital asset that enables sports and e-sports teams, music clubs, and other organizations and individuals to connect with enthusiasts from around the world, build fan engagement, and open up a whole new world of interaction within their industry.
Like cryptocurrencies, fan tokens are built on a system of digital records called a blockchain. Simply put, a blockchain is a digital database that stores transaction records in a secure, irreversible, and decentralized manner.
Think of a blockchain as a piece of paper on which you record transaction data, including deposits, withdrawals, and trades.
Look closely at that piece of paper and you’ll see that it contains blocks of information, similar to cells in a spreadsheet. The unique thing about this piece of paper and the blocks it contains is that you can only write on it — you can’t go back and edit or remove the content.
When you record a transaction in an empty block — such as the purchase of a fan token — a new block appears and links itself to all of the previous blocks, creating a chain of information called a blockchain.
A fan token is a record of digital value stored on a specific blockchain. Some tokens have the same name as their blockchain, while others are stored on blockchains of a different name.
Take the S.S. Lazio Football Club fan token (LAZIO) as an example. The LAZIO token is issued on the BNB Smart Chain (BSC) as a native BEP-20 token.
Fan Token Versus Cryptocurrency
At first glance, a fan token may seem similar to popular cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH):
- Both fan tokens and cryptocurrencies are stored on the blockchain
- Both can be exchanged for products and services to a certain degree
However, the similarities end there.
Unlike cryptocurrencies (many of which are used as a medium of exchange, similar to fiat or government-backed currency), fan tokens serve a singular and unique purpose: to help teams and brands interact with and provide benefits to their loyal fans.
In essence, fan tokens are a form of cryptocurrency that isn’t necessarily backed by the same underlying value principles as coins like BNB and Cardano (ADA).
The Benefits of Fan Tokens
The benefits of a particular fan token vary depending on the organization that issues it. For example, holders of a fan token may get a chance to influence club decisions and vote on various polls published by the team itself.
Theoretically, though, there is no limit to what the club can offer or how it can interact with its token holders.
They might give fans the opportunity to vote on things like:
- Dressing room design
- Music played after a team scores
- Club bus design
Or, they might give fans the opportunity to:
- Record a message to be played in the dressing room before the game
- Access rare merchandise drops
- Participate in raffles for unique gear or team experiences
- Win fan badges
- Purchase mystery boxes and non-fungible tokens (NFTs)
- Take advantage of other exclusive token-holder offers
As these tokens become more common, no doubt the list of benefits will continue to grow.
The Most Popular Fan Tokens on Binance.US
Fan tokens have grown in popularity since Juventa FC introduced Juventus (JUV), the first fan token, back in 2019. Since then, other sports teams and organizations have created their own tokens in order to provide a more robust fan experience.
The most popular fan tokens by market capitalization (value) on Binance.US include:
Check with your cryptocurrency platform to see which fan tokens they offer.
Are Fan Tokens NFTs?
A fan token is not an NFT. An NFT (or non-fungible token) is a unique, one-off collectible that cannot be duplicated on the blockchain once it has been created. On the other hand, fan tokens are 100% fungible and exchangeable.
A fungible token is like every other one of its kind. And an exchangeable token is one that holders can trade for any of the benefits the issuing organization chooses to offer.
Think of one fan token as a dollar bill. A single dollar bill is like every other dollar bill, and you can exchange one with any other dollar bill and then use it to make purchases at participating locations (e.g., websites, brick-and-mortar stores, with other individuals, etc.).
The same idea applies to fan tokens.
Tips for Buying Fan Tokens
1) Be Aware of the Risk
The value of a particular fan token is largely determined by what the issuing organization has to offer and can fluctuate rapidly and at any time.
Before you purchase any cryptocurrency, educate yourself about the risk involved.
2) Research First
Before making any purchases, be sure to research the crypto in which you’re interested.
Gather information from multiple sources, and always keep in mind that:
- Crypto markets (including fan tokens) can be volatile
- Many of these tokens are so new that nothing is set in stone yet
- Even experts in one token may not understand the new tokens coming online
The more time you spend researching, the better you’ll be able to practice risk management and protect yourself from the ups and downs of the market.
3) Prepare a Wallet
A crypto wallet allows users to store, access, and manage their fan tokens (and any other cryptocurrencies they buy). Wallets fall into two categories: hot wallets and cold wallets.
Hot wallets are those that online cryptocurrency exchanges offer to their customers, while cold wallets store cryptocurrency offline (e.g., on an external hard drive).
Purchasing fan tokens is generally available to anyone who wants to participate and has the funds. However, many users will be better served by buying and selling through a crypto platform, like Binance.US.
How To Buy a Fan Token
1) Create a Crypto Platform Account
The first step toward buying a fan token is to create an account with a crypto platform, like Binance.US. This will give you the ability to use fiat currency like USD (money backed by a local government) to purchase digital assets.
Before choosing an exchange, be sure they have features that work for you regardless of the fan token (or other crypto) you choose to invest in. You never know when you might want to expand from fan tokens into the cryptocurrency market.
When you partner with a robust platform, you’ll be ready.
Look for features including:
- Low trading fees
- Ability to set recurring buy orders
- Selection of trading pairs
- Real-time order books
- Advanced trading APIs for developers and API traders
- Selection of cryptocurrencies
2) Fund Your Account
The second step toward buying a fan token is to transfer funds from a traditional bank account to your newly created crypto platform account.
Most trading platforms offer a variety of ways to fund your account, including:
We recommend verifying that the trading platform of your choice offers a funding method that’s convenient for you.
3) Select Which Token to Buy
After you’ve created and funded your account, you’re ready to start buying fan tokens. In most cases, it’s as simple as selecting the particular token, specifying how much you want to purchase, and clicking or tapping the “Buy” button.
If it’s a one-time purchase you’re after, that’s all you need to do. If, however, you want to purchase more fan tokens on a regular basis, you can take advantage of recurring buy orders.
This unique feature allows you to specify how many fan tokens you want to purchase and when you want to purchase them (e.g., daily, weekly, twice a month, or monthly).
With those variables set, the system then automatically executes a buy order at the specified time and for the specified amount without you having to do anything else.
Upgrade Your Sports Experience
A fan token is a fun way to show support for your favorite team, interact with other die-hard fans, and gain exclusive benefits in the process.
Sign up with Binance.US today to upgrade your fan experience with a fan token from your favorite team.
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Legal disclaimer: This material has been prepared for general informational purposes only and should NOT be: (1) considered an individualized recommendation or advice; and (2) relied upon for any investment activities. All information is provided on an as-is basis and is subject to change without notice, we make no representation or warranty of any kind, express or implied, regarding the accuracy, validity, reliability, availability or completeness of any such information. Binance.US does NOT provide investment, legal, or tax advice in any manner or form. The ownership of any investment decision(s) exclusively vests with you after analyzing all possible risk factors and by exercising your own independent discretion. Binance.US shall not be liable for any consequences thereof.