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NFT and Fan Tokens excite fans

Axel Becker - Content Manager, Decrypto.la writes about the advantages of owning Fan Tokens and choosing sports clubs The tokenization of the ec


Axel Becker – Content Manager, Decrypto.la writes about the advantages of owning Fan and choosing sports clubs

The tokenization of the was already present in the sport in the form of fan tokens and begins to take more and more prominence. The search for new forms of income and the growing adoption of crypto assets worldwide are driving their use.

However,what is a ? They are crypto assets that serve to increase the income of the institutions and increase the sense of belonging of the fans with their clubs. We could say that they function as a membership, granting in some cases the possibility of deciding on club matters.

Own Fan Tokens from a certain club you allows you to participate in exclusive experiences What raffles, training, meet and greet with players or other types of activities organized by the club.

Thanks to the possession of them, a fan could vote with which song he wants the team to go on the field or the design of a future t-shirt. In turn, when you buy the token, you gain exposure to variations in the price of that cryptoactive, being able to make a profit if it rises and you sell your positions.

In , Independent and the Argentina Selection are the unique to have their own fan token. This supposes an additional income in the middle of a context of little scarce economic income.

The Avellaneda club, for example, sold the first round of tokens ($ 250,000 CAI at $ 1.25 per unit) for $ 312,500. The token is currently listed on CoinMarketCap at position 1635 in the cryptocurrency rankings with a market capitalization of $ 1.4 million and a face value of $ 2.30.

For its part, the token of the ($ ARG) is in the 1144th position with a market capitalization of US $ 6.4 million and its value per unit is US $ 4.50.

As part of the arrangement of the Argentine Football Association (AFA) with Chilliz, the Argentine League 2021 is called “Torneo Socios.com”. According to the AFA itself, Socios.com obtained profits of US $ 150 million among its partners in the first half of the year.

Worldwide, several clubs already have their own fan token, such as, for example, Barcelona, PSG, Manchester City, Atletico , Milan or Rome, among others. But this type of crypto-assets are not only found in the world of football, but we can also find them, for example, in the Formula 1, the NBA and in the UFC.

The PSG case took on a lot of prominence with the arrival of Lionel Messi to the institution. Days after the Rosario footballer signed his contract with PSG, it was announced that part of his salary will be in “fan tokens” of the Parisian club.

This token was created in January 2020 together with Socios.com and its supply is scarce: there will only be 20 million in circulation. The digital asset went from $ 22 to $ 58 with the announcement of Messi’s hiring, peaked at $ 61.53 and is currently around $ 30.

The fact that Messi collects part of his salary in crypto it’s a important vote of confidence to a modality that we will surely see more and more often. The amount that he will receive in crypto assets was not disclosed but the club reported that it would be a significant sum.

The case of the Rosario player draws attention but is far from being the first. Nikolaj Rosenthal, a Danish ice hockey player, was the first athlete in the world to collect his entire salary in cryptocurrency at the end of 2017.

At the club level, adoption is also evident. In 2018, the eToro platform, a broker that operates multiple financial assets, entered into a commercial agreement with 7 Premier League teams which was paid in full in bitcoins. Another case is that of Benfica from Portugal, a club that accepts cryptocurrencies for the purchase of tickets and merchandising.

In Argentina we can highlight Hurricane Athletic Club, which has just joined the world of cryptocurrencies thanks to Decrypto.la; the exchange is the new Main Sponsor of the institution.

Soon the players and coaching staff will be able to choose to collect their salary, or part of it, in cryptocurrencies within the platform. This will give them the possibility to get the most out of their salaries, since they will have the opportunity to invest them in different cryptos such as , , in stablecoins or with tokenized assets such as Apple or Google shares.

This alliance will also aim to train players and fans on this new technology, so that in the future they can buy the club’s fan token or pay your social fee with cryptocurrencies.

Another club that ventured into the world of crypto is Deportivo and Mutual Leandro N. Alem as a forerunner when it comes to cryptocurrency payments in the country. General Rodríguez’s team will pay part of the salary of the players emerging from the lower ranks of the club in USDT (a stablecoin that has a 1 to 1 parity with the dollar).

The authorities also reported that they will advise and provide study material to their soccer players on issues related to cryptocurrencies and technology. AZ Alkmaar, Southampton, Gibraltar United FC, and Harunustaspor are other clubs that also offer payment in crypto assets.

The wonderful world of NFTs

Another closely linked ecosystem is that of non-fungible tokens (NFTs). These are unique and unrepeatable pieces of art that cannot be hacked or tampered with. They offer authenticity and traceability to a virtual object (an image, photo, video or musical fragment) through blockchain technology, used in currencies such as Bitcoin. In such a way we can know for sure who owns a certain piece of digital art.

Messi himself presented a few weeks ago his own collection of NFTs with the name “Messiverse“, a fantasy title that combines the surname of the best player in the world with the term” universe “, which refers to all existing dimensions.

There are four pieces entitled “Man from the Future”, “Worth the Weight”, “The King Piece” and a fourth about the historic consecration in the Copa América 2021. These unique pieces of digital art are for sale on the Ethernity Chain platform .

This cross between the world of cryptocurrencies and sports also took place through the company Sorare, which is responsible for the commercialization of digital cards (football or NBA player cards).

The company already has commercial agreements with more than 100 clubs (including Real Madrid, Juventus, Liverpool, PSG, Boca and Vélez) and has investors such as Gerard Piqué, Antoine Griezmann and Rio Ferdinand. We can see the enormous economic potential that this technology has in the sale of digital chrome from Cristiano Ronaldo: It was sold for $ 289,920. Crazy!

They say that passion moves crowds and what better for clubs than to profit from such extreme fanaticism, while generating a unique sense of belonging from fans to their clubs. The fan tokens They are here to stay and promise to be an ideal vehicle for the growing adoption of cryptocurrencies in sports.

* By Axel Becker, Content Manager by Decrypto.la

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