As per the news agency, fans spend $300 million on virtual currency, and there is an involvement of 24 clubs of the European League. Most of the clubs are offering fan tokens, but Manchester United is dealing with NFT (Non-Fungible Token). Here, Socios company played a pivotal role as it started the sale and managed the trading.
The top clubs that generated the most sales through the virtual currency are Lazio, Manchester United, and Porto. But at the end of the first-day trading, it has been observed that the sales of Manchester United and Lazio dropped to 50% and 70% respectively. Now, the fans may wonder how it happened and what is the possible cause? Well, the answer is very simple, any market depends on the demand and supply methodology, and in the fans token case, the clubs retain $1.9bn (value of token), and the fans hold only $300 million. This huge margin is a big sign of worry.
Additionally, the clubs that retain 80% of the fan tokens can’t sell them at a time because the value of the token will decline sharply.
How are the football fans trading on Fans Token?
Many cryptocurrencies are available in the market, such as Bitcoin, Ethereum, and many more. However, to buy any virtual currency, real money is required, and the buyer has to convert the physical currency to virtual through the assistance of the company. Here, in fan tokens, Socios is the company that is handling the token game, and the currency name is Chiliz.
To get the Chiliz currency, football fans have to convert the real money to this currency, and once this virtual currency is added into the wallet, then they can buy the fan tokens of the clubs that they support. However, in the financial sector, this currency is termed as most volatile because the value swings a lot, and the sharp fall of fan tokens of Manchester United and Lazio is the best example. So, if you have planned to invest the money in Chiliz, then wait for a while as there are still many more things for you to know.
The Reason Behind the Spend of Millions on Fan Tokens
Fans love and praise football, and they can go to any extent for this game. When they heard that they got a chance to take part in their favorite club, they immediately jumped into it. The clubs offer ample perks to the fans who buy their tokens that include votes on music, a chance to win tickets, a permanent discount in the shop featured by the club, and many more. Moreover, some clubs that took the path of NFT offers digital logo, images, etc., for the fans. These perks are rewards for the fans who invest in the virtual currency followed by the club.
The drawback of Fan Tokens
In the practical world, fans’ token is highly volatile and less secure as fans are purchasing the club-based token from a third party, which is not hosted by the clubs. Likewise, there is a high probability of the fluctuation of the token price because the majority of such tokens are retained by the clubs, and lack of authority results in the actual price of fan tokens.
Most people use virtual currency as a tool to make money, but considering fan tokens, it’s not safe. Being a football fan, if you indulge in this marketplace, then you can get the handy perks through various modes. In a nutshell, there is a mixed review of fan tokens, some earned good money and also got perks from the clubs, but there are many fans who feel they get cheated. Even Brighton and Hove Albion club released a statement and said that the club is not in any mood to enter this market.
NFT- A Replica of Fan Tokens
Manchester United stepped into the NFT marketplace, where the club features the digital logo, music, and other football collectibles for the fans. However, the fans have to visit the NFT (OpenSea), and after reaching there, they can purchase the utilities they like. But before that, they must have Ethereum in their wallet as this is the only source of payment.
According to the Sbobet, two other clubs, Rangers, and Juventus, also entered in NFT. The clubs have opened the gate for the fans where they can purchase their favorite football collectibles. Here, one of the best examples is of Mike Bousis, who spend a $40 grant on this platform. But if you are planning to invest in NFT, then you must go with the recent research, and as per that, the values of NFT fetched by the leading clubs dropped sharply.
As a football fan, it is quite hard to believe who is on the right side, clubs or research. But if you are a die-hard football fan, then show your passion in the stadium support your favorite club, but when it comes to money, don’t follow the crowd. Just go through the research, latest news, future of the virtual currency, and an impact on the physical world. So, consider all these factors and then spend money.
However, you will find some exceptions that someone made good money through virtual currency, but they are in the minority; just have a look at the conditions of the majority people. Hence, love and respect football and enjoy the game irrespective of getting involved in the handsome perks.
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