Football fans and crypto traders take note, football fan tokens are on the rise. There are currently just over two dozen football clubs worldwide whose shares can be traded on the stock exchange. These include large clubs with a broad fan base such as Juventus Turin, Manchester United, Borussia Dortmund and others.
The respective market capitalization is correspondingly high and usually amounts to several hundred million euros. Shares from this segment usually do not have a success story to offer; after a certain initial euphoria, the prices of these football shares almost always start to just bob around and are then usually soon at penny stock level. They are often also correspondingly narrow in the market and therefore uninteresting for the majority of investors.
Football fan tokens as a new way of identifying with the clubs
The crypto boom now offers other solutions for indirectly participating in a football club, namely via so-called fan tokens. These are a type of cryptocurrency issued by football clubs. They are intended to offer fans a new way to identify with their club and participate in decisions.
A major advantage of these fan tokens is certainly that they can be traded around the clock and 24/7 – including on weekends and public holidays. Shares in this form cannot offer that. One of the most important functions of fan tokens is certainly the potential right to have a say. Fan token holders can have a say in certain decisions made by the club, e.g. in the choice of the new jersey, the design of the stadium or perhaps even in the team line-up or potential new recruits.
The extent of the right to have a say can vary from club to club and accordingly. Another important factor is offering exclusive content. Fan token holders can get access to exclusive content, such as interviews with players, behind-the-scenes material or participation in competitions and the like.
After the euphoria came the hangover
Since fan tokens can be traded like any other cryptocurrency, there is of course also a return aspect. In the past, the prices of some fan tokens have risen sharply to very sharply, which has brought the owners a proud return. However, in this sector too, the euphoria has now given way to lethargy.
Most fan tokens have now lost over 90% of their highs. The purpose of fan tokens is therefore to offer fans a new way to identify with their club and participate in decisions. They should also represent a new source of income for the clubs.
However, the introduction of fan tokens has also sparked criticism. There were fears that the tokens would be used primarily to rake in money from fans. There is also a risk that the fan tokens will become objects of speculation and that the prices will fluctuate greatly.
The future of fan tokens is still uncertain, and it remains to be seen whether the tokens can establish themselves as a new form of fan participation in the long term.
However, something has been happening in the charts of these tokens for some time now; every now and then the prices suddenly jump up, but then often fall again just as quickly.
This kind of price behavior can also often be seen with stocks, where larger addresses try to collect pieces in the background without damaging the price. Whether a similar phenomenon is present with tokens is of course pure speculation.
New projects
There is also a lot going on in the background, as there are a number of other football clubs that have plans for new fan token projects. The more clubs follow suit, the more interest this will generate in the crypto scene, which can usually lead to stronger price movements northwards. In contrast to stocks, cryptocurrencies often exaggerate in both directions – here prices sometimes double or more in a very short space of time, but there is always the risk of total loss, although none of the big clubs can or want to cause such negative propaganda, especially with fan tokens.
Some new projects have already been announced. The Brazilian football club FC Santos announced a new project called “SANTOS Metaverse” in November 2023. The project aims to create a virtual world for Santos fans where they can meet, watch games and take part in exclusive events. The Italian football club AC Milan announced a new project called “ACM NFTs” in December 2023. The project will include a collection of non-fungible tokens (NFTs) of players, coaches and other members of AC Milan.
The NFTs are intended to offer fans the opportunity to connect with their favorite club and receive exclusive content and benefits.
The Spanish football club FC Barcelona announced a new project called “BAR Metaverse” in January 2024. The project aims to create a virtual world for Barcelona fans where they can meet, watch games and take part in exclusive events.
Personal conclusion
Fan tokens are still exotic but not hopeless projects that are gradually growing out of their infancy. It will take some time and more providers for fan tokens to become standard in the world of football.
Overall, fan tokens are more attractive than shares in football clubs, especially as they allow you to interact more actively with clubs and players. However, you should not only be guided by your passion for your favorite club, but also be open to projects from other clubs and players.
FOOTTOK is the first company in the world to offer a cross-functional and cross-club fan token that can be used for various sustainable activities and services. With FOOTTOK tokens, fans are given voting and voting rights and can thus help shape and influence the company’s success and football.
In addition, token holders will participate in the company’s success and receive added value when token values rise, as FOOTTOK tokens will be tradable on various stock exchanges in the future.
