The world of US sports is just beginning to wake up to the potential of fan tokens, as proven by Saturday’s huge UFC 277 fight card.
Julianna Pena lost to Amanda Nunes in a brutal fight, one the legendary Conor McGregor likened to his feud with Nate Diaz. In the Octagon, the fight was notable for its brutality and ultra-competitive edge. Outside the Octagon, it was notable for something far different due to the presence of a fan in Pena’s corner.
Pena has released a fan token that gave one lucky follower the chance to accompany her to Octagon-side. She told Fight Sports it was a chance for a super fan to get a once-in-a-lifetime experience, and it’s becoming increasingly common across sports. What are fan tokens, and how late to the party is everyone in the US?
What Are Fan Tokens?
Fan tokens are a digital asset, similar in some respects to NFTs. As we explained, the NFL is involved in a play-to-earn game that rewards users with an NFT, a non-fungible token with a real-world value. Fan tokens share some similarities; they have a real-world value, but they’re closer to crypto in terms of value; one token is worth a set amount and all other tokens for the same team are worth the same. That makes them fungible, and they have real-world benefits also, which sets them apart from NFTs.
What Are Those Benefits?
Owners of a fan token do not just have a digital asset with real-world value; they own a digital influence in their favorite clubs. One popular fan token provider, Socios, has an app which gives holders of fan tokens a chance to vote on certain club matters. Holders of an Arsenal fan token recently got to advise the manager on the team for their opening friendly, and they’ve previously selected the club’s goal music to be played at the ground. Other big clubs have had the color of the team bus chosen by fans. Supporters also access unique content and quizzes and can get once-in-a-lifetime experiences, like Pena’s fan at Octagon-side.
Where Are They Popular?
They’ve primarily been popular in Europe; several of the biggest names in soccer, including Barcelona, have recently adopted a fan token. Provider Socios has expanded into other sports, such as Formula 1 and Rugby, whilst recently South American soccer teams have released a fan token.
When Will The US Get Onboard?
US Sports currently don’t embrace fan tokens; there’s some discussion around how they could be implemented, but they are coming. Socios has recently funded an expansion into the US market, and it doesn’t mean fan tokens, but it does mean lots of exposure and branding at major games.
It won’t be long before fan tokens become a common part of US sports. The scope they offer teams to reach a wider fan base is impressive; rather than interact with social media, they make fans feel part of a fan club, much like in the days before technology took over. They are effectively the modern-day version of a fan club, with a membership you can buy and sell, rather than simply letting it expire. With US sports loved worldwide, it is the next natural market for fan tokens to expand into.
