Heads up: This is an old article for a few days. ;)
We only have four days left in the transfer window, and rumors have it that Christian Ronaldo, the 5-time ballon d’Or award winner and a football G.O.A.T will leave Juventus for Manchester City. This rumor has resulted in the price upsurge in the Manchester City fan token by over 75%. We can compare this to the 100% price upsurge of the PSG fan token caused by rumors and confirmations of Messi joining PSG. The Manchester City fan token that was trading at $19 three days ago is currently trading at $32 per token as of the time of writing. Well, you know what they say, buy the rumor and sell the…
What is a Fan Token?
Fan tokens are cryptocurrencies that grant their holders access to certain membership perks privileges, such as voting rights on club matters, club rewards, and other minor decisions related to their clubs on the application, Socios.
The following are among clubs that have launched their tokens this year are Manchester City, Juventus, PSG, AC Milan, etc.
Unlike non-fungible tokens (NFTs) in digital art or music, crypto fan tokens are fungible, meaning we can exchange them for other digital currencies.
Fan Token Offering
Fan token offering refers to auctioning the tokens to interested parties at a fixed price before listed in a marketplace. Traders normally purchase crypto fan tokens on the cryptocurrency exchange, Chiliz. Before made available on the exchange, the sports club first perform a Fan Token Offering (FTO). An FTO is like an Initial Coin Offering (ICO) in the crypto trade. The opening price of the token, the start and end date of the announcement of the distributed tokens. When the FTO date arrives, interested parties can buy the tokens with money or existing crypto coins they already own on the exchange.
Tokenization seems to be the new thing in the current modern world. 1st it started with money, then to art, then to music and now we are at sports. What do you think will be the next industry to be tokenized?
Originally published on CryptoCurrency Academy.
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