• Written by: Crypto Breaking News
  • Thu, 16 Mar 2023
  •   United Kingdom

Fan tokens work by allowing fans to buy ownership in a specific asset or experience related to a sports team, celebrity or artist and giving them access to exclusive content and benefits. Teams looking to launch fan tokens collaborate with blockchain-based platforms, like Socios, to mint the tokens on a blockchain. A fan token offering [...] The post What are fan tokens, and how do they work? appeared first on Crypto Breaking News.

What are fan tokens, and how do they work?

Fan tokens work by allowing fans to buy ownership in a specific asset or experience related to a sports team, celebrity or artist and giving them access to exclusive content and benefits.

Teams looking to launch fan tokens collaborate with blockchain-based platforms, like Socios, to mint the tokens on a blockchain. A fan token offering (FTO) is scheduled where fans can buy the tokens for a flat price. Post-FTO, the value of fan tokens could rise or fall, depending on team performance, use cases, demand, project execution and similar other parameters.

Barcelona, Manchester City, Juventus and Paris-Saint Germain have also launched their fan tokens. Additionally, the KPOP Fan Token (KPOP) is a utility token that provides K-pop fans with a tokenized share of influence on the Korean pop music industry through social applications and support.

Fan tokens function as an automated membership key, granting holders a variety of benefits. The tokens make the holders eligible for team recognition and unique rewards. Not only can they access collectibles and merchandise but also get a berth for interactive sessions and autograph meetings, which are just not accessible otherwise.

As fan tokens endow holders with the right to have a say in team decisions, they are comparable to corporate shares. While they may not grant them a decisive say, like governance tokens do in tech-related features, allowing fans to vote on club matters is a welcome step. It makes them feel like part of a club.

Often, if a user has more tokens, they enjoy greater influence in the fan ecosystem. Some teams require users to hold a certain number of tokens before they become eligible for voting and other perks.

Source: Cointelegraph.com

The post What are fan tokens, and how do they work? appeared first on Crypto Breaking News.