Soccer Fan Tokens Perform well During Bear Markets

[TL; DR]
🔹 Soccer fan tokens enable football teams to engage their supporters.

🔹 Soccer fan tokens have been performing well during the bear market.

🔹 The sentiments of supporters influence the prices of fan tokens.

🔹 Gate.io is a centralized exchange where people buy and sell fan tokens.




Introduction

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Digital assets, particularly cryptocurrencies, have great influence in different economic sectors. The reason is that industries and firms adopt blockchain technology and innovate ways to use it for the benefit of mankind. Presently, the soccer fraternity has adopted the blockchain technology through the introduction of fan tokens.


What are Fan tokens?

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Fan tokens are cryptocurrencies which sporting teams and other entertainment organizations use to interact with their followers and supporters. Basically, the fan token acts as a medium of exchange and investment assets. They are means of payment because the supporters of a team can use the tokens for purchasing its products and services. The tokens also enable the fans to take part in the team’s decision making process through voting and completing surveys.


Fan tokens have performed well during the bear market

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The truth is that fan tokens have performed better than the rest of cryptocurrencies during the bear market in 2022. Of course, one reason for this is an increase in their adoption.

In May 2022, NFTevening reported that fan tokens outperformed many other cryptocurrencies during the first quarter of the year. Accordingly, during the first three weeks of May some football fan tokens registered price increases of over 200% while most of the other cryptocurrencies were in the red. For instance, during that period the price of Santos FC Fan Token (SANTOS) increased by 220%.

Soccer fan tokens rallied much in August as well, defying the bearish momentum. According to Business2community, soccer fan tokens performed exceptionally well during the first and second weeks of August 2022. The leading performing token was SANTOS whose price increased by 135%. The other top performing fan tokens were OG Fan Token (OG), FC Porto Fan Token (PORTO), S.S. Lazio Fan Token (LAZIO), FC Barcelona Fan Token (BAR) and Atletico De Madrid Fan Token (ATM).

The bullish momentum of fan tokens was not just short term. Insight Analytics reported that the bullish momentum of fan tokens was noticeable throughout the second quarter of 2022. In august, alone, the top gainers were fan tokens of major soccer teams. This website attributes the bullish momentum of these tokens in August to the commencement of the English Premier League (EPL). The following table shows the market performance of some soccer fan tokens on 18 August, 2022.



Why do fan tokens perform well on the market?

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Fan tokens are utility tokens, meaning that they act as medium of exchange on the platforms they exist in. In terms of soccer, supporters use the fan tokens to purchase team products. Thus, the demand for these tokens is often high. In this regard, the market forces of demand and supply determine their prices.

Second, a team’s activities influence the value of its token. For example, if a team brings new quality players the value of its token may rise sharply. Changes in the team’s performance or its management may affect the price of the token as well.

In addition, the emotions and sentiments of the fans affect the token’s price movements. Thus, if the team is in a winning streak, the value of the token may rise because the fans are happy and vice versa.


The market for soccer fan token

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Currently, the soccer fan tokens such as CITY are available on different exchanges. Gate.io is one of the leading centralized crypto exchanges where people can trade soccer fan tokens. In fact, Gate.io has the most prominent soccer fan tokens including CITY, ATM, PORTO, LAZIO, TRA, ASR, JUV, AFC, GAL, SNFT and OG.

Manchester City Fan Token (CITY)
Manchester City’s fan token (CITY) is among the most valuable cryptocurrencies on Gate.io. By the way, Manchester City is one of the top teams in the English Premier League and is among the first clubs to create its own tokens on Socios. Since it has many fans across the world, the value of the token (CITY) may increase significantly with time.

Atletico Madrid Fan Token (ATM)
Atletico Madrid is a top soccer team in Spain, playing in the La-Liga. It created its token in 2020 and since then it has been on the market. The holders of ATM can participate in making decisions on various issues related to the club.

FC Porto (PORTO)
FC Porto launched its fan token in 2021. Holders of PORTO benefit in various ways. For example, they can use it to purchase its products such as the NFT Mystery Boxes. Also, the club gives loyalty rewards to the supporters that hold PORTO. S.S. Lazio (LAZIO)
LAZIO is the team’s fan token which gives its holders different entitlements. The token holders can also use it to purchase products such as NFTs. Above that, the fans can access special services including Fan Shop integration, NFT collections, Mini-games, loyalty sub_script_ions and Donations.

Trabzonspor (TRA)
The trabzonspor token (TRA), launched in 2020, gives its holders various privileges such as exclusive discounts on merchandise and free match tickets at times.

Santos FC Fan Token (SANTOS)
The SANTOS token enables the team to connect with its supporters. Like the other fan tokens, the holders of SANTOS can participate in making decisions that affect the team. They contribute their ideas through polls or surveys.

Paris-Saint Germain (PSG)
PSG is one of the most popular soccer fan tokens, considering that Paris-Saint Germain is a well established football team in the world. Holders of PSG token can use it to purchase the team’s merchandise.

Other fan tokens
There are many other fan tokens at Gate.io. However, these tokens such as JUV, AFC, SNFT and OG have similar functions as the ones we discussed above. Interestingly, most of these have been in high demand on the market.


Conclusion

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Soccer fan tokens give teams the opportunity to raise more funds as well as the chance to interact closely with their fans. The team’s performance, player signings and change in management affect prices of the tokens. During 2022, most of the fan tokens performed well on the market. Apart from the fans who purchase and hold them, investors also trade them.



Author: Mashell C., Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
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