The football fan token emerged as an offshoot of the token craze in cryptocurrency around 2019. Essentially acting as token shares of influence, fan tokens give supporters of sporting organizations the chance to participate in club polls, win unique prizes and, say a small. Club decisions that are designed to increase fan engagement, but are often merely aesthetic in nature.
But despite the seemingly superficial nature of fan tokens, their prevalence only grew from strength to strength as the years passed by, with major European football clubs barcelona, AC Milan, Manchester City, Paris Saint Germain and many more adopted the token.
2020 and 2021 saw a massive increase in adoption as sports stadiums were hosting games behind closed doors as a result of fallout from the COVID-19 pandemic. European football’s governing body, UEFA, make predictiond Major clubs will share the loss of 8 billion euros ($9.7 billion) due to the lack of gate receipts and broadcast revenue.
With this in mind, it probably makes sense for major clubs to collaborate with blockchain fan token platforms such as Chiliz, which hosts fan token offerings through the Socio website. as Reported As reported by Reuters, Chili’s shares half of the proceeds from its token sale with its partner clubs, and the firm anticipates sales of the remaining $200 million in 2021.
The president of the Football Supporters Association for England and Wales, Malcolm Clarke, said that clubs have undoubtedly made money from the launch of fan tokens during the pandemic. But Clarke said allowing fans to have a say in how clubs operate, or, “trying to extort extra money from supporters by making inconsistent ‘engagement’ online polls,” was by no means a good look.
AC Milan spokesperson, Joe Launched its own fan token Amidst the pandemic lockdown, the launch of Fan Token was a strategic move designed to increase its digital presence and “keep closer” to fans.
The total value of the fan token market across all platforms is currently $260 million – a 900% increase from last year, according to data From fantokenstats.
However, that statistic only tells half the story. The fan token’s value fell along with the rest of the crypto market after peaking in April and May, and the turmoil that followed, fell by more than 55%, briefly falling to a combined value of $228 million.
This volatility, coupled with rising matchday costs in general, has left some fans feeling the price for having their voices heard. West Ham United Independent Supporters Association president Sue Watson asked: “Why should you pay to say anything at the club?”
adding to the cost of season tickets and costly Soccer strips, Watson said, were just one example of the fan tokens costing more. “It grows, it ain’t cheap,” she said. Watson’s comments specifically point to a growing trend in European football, with skyrocketing fan costs among many. respect As a gentrification of what was once a working class pastime.
Serving as another reminder of the largely superficial nature of fan tokens is a recent attempt by several major European and British football teams to create their own European Super League. Aiming to eventually create a breakaway league failed, but no fan groups, broadcasters or advertisers were consulted in connection with the league’s attempt to form a league, let alone fan token holders.
The sports world has also joined hands with non-fungible tokens in recent months, as the NFT craze has engulfed many. sports organization and brands that used technology to auction off unique fan experiences.
while NFT sales drop by over 90% Since peaking in Q2, sports-related NFTs have actually shown the most resilience to market downturns, falling by only 55%. At the time of publication, sports-based NFT platform Sorare was among the top three apps based on daily sales volume, with $1.5 million in sales in the past 24 hours. It has over 6,000 sales in the past week, which exceeds the art collectible Cryptopunk’s 57 sales by some margin. data irreparably.