Fan Tokens have turn into common belongings within the crypto trade. Based on Fan Market Cap, there at the moment are 82 fan tokens in existence with a market cap of greater than $296 million. They’ve a diluted market worth of over $1.8 billion. So, are fan tokens useless?

What are fan tokens?

Fan tokens are monetary belongings that leverage the idea of blockchain in fan engagements. They’re issued by common groups that need to elevate cash and participate within the rising blockchain sector.

Most fan tokens in existence had been issued by main groups like Paris Saint-Germain, FC Porto, Barcelona, and Manchester Metropolis. Sports activities organisations just like the Argentine Soccer Affiliation and Portugal Nationwide Group have additionally issued their tokens. Equally, F1 group Alpine, has a token.

The largest fan token available in the market is Lazio, which is valued at over $30 million. Others are Santos, Paris Saint-Germain, FC Porto, and Barcelona amongst others. 

The idea of fan tokens is simple to grasp. Groups provide these token holders and supply perks to their holders. For instance, the PSG token offers holders the power to vote on some minor matters. For instance, PSG token holders can vote on the very best participant of the season or the very best a part of the season.

Additional, token holders could be given reductions when shopping for in a retailer or when buying tickets to attend matches.

Fan tokens utility drawback

Fan tokens have a number of main issues that they should resolve earlier than they go mainstream. First, like Bitcoin, these fan tokens are largely not used in keeping with their intentions. Patrons not often purchase a fan token due to their utility. As a substitute, they purchase them as an funding. 

This problem could be solved by offering actual utility to fan token holders. For instance, token holders may very well be given an even bigger function in how a membership is run. An excellent instance is the place they’re requested to vote for a brand new group member. 

At this time, the votes they’re requested to take part in usually are not all that vital. The final vote by FC Porto was for holders to decide on the sports activities observe session they wished to observe on Instagram tales. Can you purchase a fan token for such a vote?

Due to this fact, until there’s a actual utility, fan tokens wil probably stay being a small area of interest within the broader cryptocurrency trade.