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Football Fan Tokens: big winners (despite) the bear market

 


In a crypto market in free fall, fan tokens are showing strength. They allow certain advantages for owners and are very popular, especially in the football industry.


Since the all-time high that the crypto market set towards the end of last year, it has been in the bear market. With the drama surrounding Terra Luna and the associated stablecoin TerraUSD , fear, panic, anger and depression are now spreading. A small niche of tokens doesn't seem too impressed by the crash though: football fan tokens .


The industry medium TradingPedia reports that soccer tokens have been among the strongest crypto assets since the fall on May 12, 2022. Is what started as an alternative revenue stream during the Covid crisis evolving into a serious market segment? And what exactly are these fan tokens?


This is how it is with the football fan token course

The best example seems to be the fan token of Santos FC, a Brazilian football club. This football club token has seen growth of over 220% in the last 14 days. Daily trading volume exceeded $330 million during the most active periods.

A similar pattern can be seen throughout the fan token course and especially that of football tokens. It first saw a drop to bottoms until May 12, 2022 (the day BTC and ETH also bottomed). The days after, the token sees a strong rebound with increasing trading volume up to 5000% and price increases up to over 300%. TradingPedia Analyst Brian McColl explains:


“In such a scenario, some investors refrain from closing their positions by selling their cryptocurrencies against fiat at a low price […] instead, they try to find an alternative crypto asset that is riskier but still good ones Yields offers…”


What exactly are fan tokens and why are they among the top performers?

Fan Token holders enjoy a variety of benefits. For example, they can participate in club decisions or gain access to exclusive events, forums or communities. Other projects offer VIP rewards and discounts or access to exclusive games and competitions. The exact offer differs depending on the club.


Soccer tokens seem to have an immense advantage over speculative instruments: Loyal fans hold them for sentimental value, benefits and voting rights. So they hesitate to just sell them again.


Even though the fan token market encompasses more than just football, football tokens seem to dominate it heavily. Tokens from other areas (music, gaming, basketball, ice hockey) are not even represented in the top 10. Eight of the top 10 projects by market capitalization are European football clubs.


The only exception to the top 10 fan tokens by market cap is the Alpine F1 Team fan token, which represents a motorsport team. This was released in February, also in collaboration with Binance.

Santos FC is one of the top performers among fan tokens

Another ( Santos FC ) is a Brazilian football club. Even if the fan token price is similar to all football clubs, it is one of the top performers among football tokens. Santos FC launched a fan token with Binance because Brazil and thus Brazilian football were particularly hard hit by the Covid crisis.


The Santos FC token is among the top performers for several reasons. First, the token is easy to purchase on Binance. Investors can also take part in voting to help determine which advantages they will benefit from in the future.


In addition, fans can purchase unique merchandise, match tickets and fan club memberships. Finally, investors get access to autograph sessions and training camps to meet their idols. Especially in Brazil, the land of soccer, this is a big deal and creates organic demand for the Santos token.

Not least for these reasons, the Santos FC fan token price rose from $1.45 to $6.05 within the last week and thus recorded a short-term gain of more than 300%. Since May 21, the token has cooled off slightly and is now trading at $4.05.


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.

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