The early losses of star teams like Argentina are reflecting in the fortunes of the fan tokens issued by football teams on platforms like Socios. Argentina’s loss despite Messi’s early goal upset the fans so much that they dumped its ARG token. The price of ARG dropped by over 30%, declining from over $7 to just below $5. As expected, “The Saudis” NFT collection saw trade volumes jump by over 1000% on Opensea, and saw prices increase by 50%.
Fan tokens like ARG saw increase in valuations just before the start of the FIFA world cup, and reached a total market capitalization of nearly $400 million (CoinGecko). Some digital fan tokens went up by over 100%. ARG is the token of the Argentine Football Association and has been created by the founder of Socios, Chiliz.
Here are the top three FIFA football fan tokens to watch:
- Spain National Football Team Fan Token (SNFT)
- Brazil National Football Team Fan Token (BFT)
- Portugal National Team Fan Token (POR)
- Argentine Football Association Fan Token (ARG)
What are fan tokens? These are alt-coins or cryptocurrencies that are issued by official football associations and teams to give one more venue for fans to show their loyalty, and in the process enjoy some perks. The perks include voting rights on small decisions such as slogans to adopt, what cover photos to display or design elements to showcase, or songs to play after a goal. Holders may also get discounts on tickets and merch, exclusive content, etc.
Fan tokens, unlike NFTs, are regular tokens and once bought, can be traded on secondary markets. Speculators also buy them hoping to cash in on the team’s successes.
Fan tokens can be bought and sold on major exchanges, but are issued on platforms like Socios that specialize in them. Socios tokens are usually minted around soccer or football. Binance has also created a fan token platform called the Binance Fan Tokens. Other older platforms that have been doing fan tokens are Rally and Roll.
Other than European and Latin American clubs and national teams, fan tokens have attracted cricket teams too. Indian IPL teams Royal Challengers Bangalore, Kolkata Knight Riders, and Punjab Kings have issued their own tokens on Socios. The marketing intent behind fan tokens is to convert passive fans into active fans.
Other than the minor perks, sports betters can use the fans tokens to show their displeasure too, as in the case of ARG.
On the other hand, the “floor price” of “The Saudis” NFT collection jumped 50% during the game, with sales volume up almost 1,000%, top NFT site OpenSea reported.
NFTs are yet another popular digital asset being marketing by sports teams, especially football or soccer, a game followed enthusiastically by crypto investors. Brazil’s football player Neymar is also an investors, having bought Bored Ape #5269, while Serena Williams is known to have bought CryptoPunk. Sorare, a French platform for collectibles on blockchain, had made licensing deals last year with the German and French football teams for creating NFT collections of team players.
Sources:
https://decrypt.co/70774/3-major-indian-cricket-teams-join-fan-token-platform-socios-com
https://decrypt.co/resources/what-are-fan-tokens-crypto-assets-that-give-fans-a-voice
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