Monday, June 24, 2024

Football fan tokens kick off ahead of Euro 2024 championship

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The tokens can be a good way for fans to engage better with their teams of choice at the same time as also being able to trade them.

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Fans have begun trading football tokens ahead of the Euros 2024 and the Copa Americana championship, both of which kick off this June.

The tokens have become increasingly popular in the past few months being issued by both individual football clubs and national teams. The idea behind them is to help fans engage better with their teams of choice, while still being able to trade the tokens, and potentially make a profit. 

Some popular ones are the Paris Saint-Germain fan token, trading at $3.27 (€3.05), at the time of writing, with a market capitalisation of $65.31 million (€60.1 million), and the Juventus fan token at $2.13, with a market cap of $42.53 (€39.65 million). 

Other football clubs which have also recently started issuing tokens include AC Milan, Tottenham, FC Barcelona, Manchester United and many more. National teams such as Argentina and Portugal also provide fan tokens. 

Several of these fan tokens are available on the Socios blockchain, which also offers the Chiliz cryptocurrency, which is seen as an indicator for how the fan token sector is doing overall. Chiliz has seen its market cap grow from around $479.28 million mid-June 2023 to $1.07 billion on 11 June 2024, according to CoinMarketCap data. 

According to FanMarketCap, the fan token market worldwide was worth about $426.5 million on 11 June 2024. 

Why have football tokens become so popular?

Football tokens have mainly boomed in popularity over the last few years by promising to make fans feel more part of their favourite teams, giving them more insight into their favourite players, how the team works and club affairs, in some cases. 

Increasingly, these football tokens have also come with more extras such as early ticket access, discounts on club and team merchandise, raffle tickets, as well as some power to sway things like match songs and jersey designs. They also give fans an opportunity to play in certain online games. 

Lennart Ante, CEO of the Blockchain Research Lab was quoted by Reuters as saying, “When fans are given a chance to influence club decisions, they engage substantively. The dual nature of fan tokens could hinge on how this distribution between engagement-focused users and speculators evolves.”

For football clubs, these fan tokens may be seen as a relatively cheap and lower-risk way of marketing and raising money, while at the same time raising their status in the eyes of fans. 

Some concerns have been raised recently about the fan tokens, with critics pointing out that they could lead to the rise of speculation and in turn, cause potential financial losses to fans.

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