What are fan tokens and how do they work?
If it's good enough for Messi, it's good enough for.. Traders?
The hottest news in sports this summer was Messi’s heartbreaking move from Barcelona. But what was it that made it one of the biggest news in football history? Was it Messi’s move from long standing home club Barca to PSG? Or, that Messi’s deal included a signing-on fee in part paid with cryptocurrency fan tokens?
Probably the latter, which as it turns out it was yet another big-name endorsement for crypto.
Crypto really is making its way into the mainstream.
The price of PSG rallied days before Messi’s move, with the value of the token rising more than 130% according to Reuters. Just days before Messi’s arrival the club said it saw trading volumes of over $1.2 billion with new sales generating approximately 30 million euros.* Let’s see what the new football season will have in store for both PSG and its fan token!
*Not investment advice. Past Performance is not indicative of future results
So, what’s a fan token?
For starters, tokens are digital assets that are created and used on an existing blockchain, the most popular one being Ethereum and the ERC tokens. For example, Chiliz, the most prominent fan token and the creator of the popular sports fan engagement platform Socios that is powered by $CHZ, is an ERC20 token.
They’re an innovation in crypto currency. Specific to a club, or team, they provide access to an encrypted ledger of - yes, you guessed it - membership and voting rights. Instead of being backed by some kind of underlying value, these rare digital assets are backed by how much value their fans place on being able to participate in the club, as well as their now acquired ability to earn unique benefits.
How do they work?
In a nutshell, fan tokens move according to their popularity. The appeal comes from the rights that each fan token unlocks, which allows fans to be more involved in their favorite club. It gives fans the power to be part of the decision making of their club - not to mention the perks and benefits they unlock along the way that adds to their recognition as a superfan!
Trade fan tokens now on Skilling! You can now enjoy trading the fan tokens of these world-best teams directly on your cTrader and Skilling Trader platforms! Trade PSG, Juventus, Atletico Madrid, Roma, AC Milan, Barcelona fan token CFDs directly on Skilling.
- Leverage 2:1
- Max holding exposure per account 1,000 USD.
- Max click size 200 USD
- Trading hours 24/7
Disclaimer: Trading cryptocurrencies is not available to retail clients in the UK and China.
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