Will Fan Tokens Replace Memecoins Like Shiba Inu and Dogecoin?

Shiba Inu

Fan tokens are cryptocurrencies that aren’t necessarily backed by underlying value principles of Bitcoin or Ethereum.

Fan tokens are crypto assets that are issued by clubs, organizations, or teams for their fans. Ownership of these tokens allows you to get into the inner circle of fans. Holders get access to a variety of exclusive voting access on different polls that dictate team decisions. These polls relate to decisions for match locations, tour bus designs, promotions, rewards, and merchandise designs. Owing more tokens gives you more voting power, thereby, giving fans the ability to influence their favorite team. But here the question is, if fan tokens will replace memecoins like Shiba Inu and Dogecoin?

In football, several of the world’s biggest clubs including Barcelona, Atletico Madrid, Manchester City, Paris Saint-Germain, Juventus, Inter, Arsenal, AS Roma, Galatasaray, Flamengo, and Corinthians have launched Fan Tokens. Sevilla and River Plate are among the other clubs who will join the 60 other teams, using Fan Tokens. 

Unlike NFTs, fan tokens are completely “fungible” or interchangeable. This means that, just like fiat or cash, the tokens can be exchanged for sports club merchandise, VIP experiences, and more. Additionally, they play an important role in tightening the club community with another team-branded piece of fandom.

The value of a token can be determined by its purpose and popularity, but as most tokens have a fixed or limited supply, their value is often related to supply and demand. But this is not always the case — with Ethereum for example, there is a fundamental intent to continue minting new tokens, covering transaction fees and executing smart contracts. However, speculation on the value of a token is (supposed to be) secondary to its actual use.

The Chiliz token is the first and most prominent fan token that has prompted an explosion of new tokens like the Manchester City Fan Token, AC Milan Fan Token, the Juventus Fan Token, and many more. These currencies have a brand new use case for crypto as innovation across the blockchain space reaches new highs.

 

How to Identify a Fan Token

Fan tokens generally are used as a part of fan clubs and sports clubs. They differ from other cryptos like Ethereum or Chainlink because they don’t solve the same financial or technical problems. In other words, they are more of a fun, rewards-based token.

Here are a few fan tokens that span both sports and music:

  • KPOP Fan Token
  • Professional Fighters League Fan Token
  • Paris Saint-Germain Fan Token
  • FC Barcelona Fan Token
  • Galatasaray Fan Token

In conclusion, looking at the growing popularity of fan tokens one can say that these cryptocurrencies will definitely give hard time to memecoins like Shiba Inu and Dogecoin.

 

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