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image source:[unsplash](https://unsplash.com/photos/high-angel-photography-of-football-stadium-70YxSTWa2Zw)|
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Hi friends, trust you're keeping well. Good to have you here once again. I trust you had a good time checking out my last post. Today we would be discussing something more interesting just as I've titled the post.
You might be unfamiliar with what a Fan Token is but do not worry, I would take you on a ride of absolute enlightenment. Just stay with me as I take you on this journey. Leggo guys!
|**Introduction**|
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Cryptocurrency has really come to stay, it might not have enjoyed the kind of massive adoption that we envisage but trust me it has gained so much ground over the years as it has been leveraged upon by different sectors as a viable means of payment and for furthering other form of utility.
It's fascinating to see that those in the entertainment industry like football clubs and players are beginning to like the idea of cryptocurrency and they have taken a viable step in this direction by creating what we call Fan Tokens...
This is an initiative that is specifically informed by a need to actively get fans involved in the activities of the football club and also ensure they get rewarded for their dedication and commitment to the activities of the club. Let take a look at what a Fan token really is.
|**What is a Fan Token**|
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Fan token is a crypto asset that gives it holder some form of exclusive benefit and access to all manner of fan related and membership activities such as voting, getting reward, marchandizing and other beautiful exclusive experience.
These fan token is not limited to football or other sporting activities. They could also be used by celebrities, artist or those in the music industry to build their fan base.In a nutshell, those in the entertainment industry leverage on the fan token initiative.
It also important to mention that fan token do not derive it value the way other established crypto assets like Bitcoin and Ethereum do, they derive their value based on the participation of the fan in the club activities.
According to my little findings, **chiliz token** is the first and foremost fan token to hit the market, it was after it success that other fan token began to spring up and today we have quite a number of them under this category. Today we have the Manchester City Fan token, Juventus Fan token and others.
|**How Do Fan Tokens Work?**|
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Individual or team who seem interested in launching fan token do that by collaborating with platforms like **socios**, a prominent blockchain-based platform for fan token to help with the minting of the token for their fan base.
Afterwards, an FTO which is know as **Fan Token Offering** is organized and scheduled so that fans can buy this token using fiat. This token then opens up the fan to a lot of benefit when acquired, the more you hold the more reputable you become in the fan base and enjoy some exclusive rights.
Holders of fan token can trade the token like any other token on an exchange and prices are usually fixed by sellers or sometimes influenced by the the general market movement or how valuable the fan token has become.
A fan who holds quite a substantial amount of these token gets an exclusive advantage of participating in most of the major decision of the club activities. Such as voting and also deciding on matters like how much tickets should be sold, where a match should be played, what the club merch design should look like and many more.
With all of these in place these fan feels involved and carried along as they get to participate in the decision making, more so this initiative helps to sieve out active fan thereby separating them from the passive ones.
|**Fan Token Vs NFT's**|
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Fan token do not function the way NFT does, there is a district difference between both assets.
Fan token are absolutely fungible that is, they are interchangeable. You could exchange them for club merchandise and other benefits.
|[freepik](https://www.freepik.com/free-vector/gradient-isometric-nft-concept_13816139.htm#fromView=search&page=1&position=2&uuid=e75eb994-95ef-41dd-9446-19fd902e763f)|
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Fungibility make it possible for fan token to be divisible into smaller units but it's quite difficult and impossible NFT's to be divided into piece. NFT are also assets with unique traits which cannot be replicated such as virtual event tickets, beautiful digital art works, metaverse assets and so on.
On the other hand fan token do not posses this unique trait. It identical nature is the major reason why it is easy to be interchanged or traded.
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|**Conclusion**|
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There you go friends.I would love to wrap it up at this juncture. I want to believe you've gotten so much from this piece. As my usual custom is, I would always encourage that you DYOR to be sure of every financial step you would want to take as I won't be liable for any form of loss encountered by you.
Feel free to share with me your thoughts in the comment section. Thanks for your time once again. Gracias!
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**Disclaimer: This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your own research and consult a financial advisor.**
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Regards
@lhorgic♥️
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