Soccer fan tokens emerged as a branch of the cryptocurrency tokenization craze. It happened sometime around 2019. Fan tokens are essentially acting as tokenized shares of influence. Moreover, tokens give sports organizations’ supporters a chance to take part in the club poles.
Supporters
Supporters can win prizes and gain a small say in club decisions. The tokens are designed to increase fan engagement but are often only aesthetic. Though tokens are seemingly superficial, their prevalence only went from strength to strength as years went by.
Major Football Clubs
Several major European football clubs such as Barcelona, Manchester City, and many more adopted the tokens. In addition, the tokens witnessed a sizable adoption boost across 2020 and 2021. The fallout is because of the covid-19 pandemic.
Covid-19 Pandemic
Covid-19 pandemic resulted in sports stadiums hosting games behind closed doors. As a result, UEFA, the European soccer’s governing body, predicted that major clubs would share losses of 8 billion euros. The losses occurred due to a lack of gate receipts and broadcasting revenues.
Blockchain Fan Token
Major clubs are teaming up with blockchain fan token platforms like Chiliz. Chiliz hosts fan token offerings through the Socios website. According to Reuter’s report, Chiliz shares half of the proceeds from the token sales. Moreover, the firm is anticipating $200 million worth of sales throughout the rest of 2021.
