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What is a fan token and how do they work?

O que é fan token e como funcionam?

What is a fan token and how do they work?

Blockchain technology has entered the field and this match has been going on for some time! The fan to ken market in Brazil is a reality and with a growing trend in the country of soccer. So surely you want to know what a fan token is.

To understand this innovation in such a dynamic aspect as the relationship between sports brands and fans, we should point out that the fan token is a category of utility tokencryptoactive tokens that aim to give people exclusive access to products, services and rights of companies.

Moreover, this tokenization is not restricted to sports; renowned artists invest in tokens for fans with the same goal as the clubs: to strengthen their relationship with them by delivering unique content and to generate incremental revenue.

BLOCKBR, a web 3.0 native company, brings quality information for you to know about fan tokens and how they work!

WHAT IS A FAN TOKEN?

The fan token, as the name suggests, are digital assets focused on engagement actions for the public who are fans of sports teams, from the most varied sports. By having a fan token, a person will have access to specific marketing actions.

In the case of sports team tokens, we can highlight a few.

  • Priority in buying events with wide appeal;
  • Participation in live events, VIP access, interaction with athletes;
  • Right to vote on choice of uniform, motivational phrases, and other topics.

Brazilian clubs like Flamengo, São Paulo and Santos, among others, have already made FTO (initial offer) of fan tokens and capitalize their revenues through this initiative.

In some clubs, like Vasco, the fan token model is focused on paying dividends with a percentage of the FIFA solidarity mechanism that the club has direct in future player negotiations.

Do you want to know more about what utility tokens are? Understand everything you need!

FAN TOKEN IS NOT ONLY FOR SPORTS

The fan token is not restricted to sports only. Many international artists use tokenization to increase revenue and audience engagement by offering exclusive material along the same lines as sports teams.

  • Priority in the purchase of shows and exclusive seats;
  • Access to meet & greet;
  • Presence at special events;
  • Special conditions on the purchase of albums, tickets, and miscellany.

IS IT WORTH INVESTING IN FAN TOKENS?

Is it worth buying a fan program token?

When we talk about a relationship as intense as that of fans or fans of a band or singer, the investment in fan token is valid and its value is based on the emotional aspect, on the unique experiences that the person will have.

On the other hand, the fan token should not be seen as an investment, even if the tendency of a $MENGO token, for example, is to appreciate in value with high demand and short supply.

The valuation of the fan token is speculative and can change due to internal decisions of the club and even the bad phase in the contests. A singer’s fan token can become devalued by a decision to stop doing concerts.

Therefore, it is a product impacted by factors outside of a traditional market logic and one should consider the valuation as a marginal gain and without guarantee.

WHAT ARE THE TYPES OF TOKENS TO INVEST IN?

The tokenization [link interno] of real assets, products and services generates cryptoactive assets that can be classified into 5 major groups.

SECURITY TOKENS

In this type of token, investors purchase percentages of tradable assets, ranging from real estate, vehicles, and works of art to stocks, debentures, and guarantees, receiving a remuneration paid according to the conditions in the smart contract of the offering.

The security token is an investment token in essence and its value fluctuates according to the appreciation of the asset tied to it.

QUAIS OS TIPOS DE TOKENS PARA INVESTIR?

SUPER STRUCTURED TOKENS

Super structured tokens are the class of real asset tokenizationtokenized offerings of real estate, vehicles, inventory, equipment and machinery, artwork, livestock, crops and other assets.

It is a slice of the tokenization market that will grow a lot, since all kinds of assets can be traded with tokens, it also reaches the assets of individuals, and opens up opportunities for investors of all sizes with asset fractionation.

This is another investment token, the gain is in the fluctuation of the asset’s value in the market.

STRUCTURED TOKENS

This is the investment token category with great growth prospects and results for investors, because they already know how much and when they will receive their remuneration.

Also known as receivables anticipation tokens, they are an excellent way to obtain passive income at above-market rates – the owner of the asset avoids the interest charged in the banking market and can better remunerate the investor, increasing the token’s attractiveness.

UTILITY TOKENS

In this category are tokens that provide customers with exclusive access to products and services in the form of benefit, rewards, and points programs. Among them are fan tokens.

They are not investment products and should be viewed with caution regarding valuation.

Good news for the tokenization market in the country is the creation, by the Central Bank, of the GT Tokenização, a working group to study the activities of asset tokens in Brazil.

Coupled with the regulation of cryptocurrencies – which brings direct benefits to business tokens – passed in December 2022, these are big steps toward the greater visibility and credibility of crypto-actives.

WHERE AND HOW TO INVEST IN TOKENS

The best way to learn about the token market in its various forms and offerings is to open an account on a token sales platform, such as BLOCKBR, an experienced asset tokenizing company that guarantees the security of operations.

Registration is simple and fast. Once approved, you can study the offerings and choose the ones that meet your investor profile – from tokenization of receivables to stocks and corporate projects, and various business models.

And the best: the democratization of investment.

It is possible to invest in tokens starting at 50 Reais and have great results.

Open an account with BLOCKBR and make a goal in your life as an investor!

BLOCKBR Digital Assets is a web 3.0 native fintech that unites technological innovation and digital knowledge to transform physical assets into digital ones, in the process of tokenization.

The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.

We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.

Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?

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