Soccer clubs have potentially made hundreds of millions of pounds selling controversial crypto fan tokens. Analysis commissioned by £ 262 million ($ 350 million) has been spent on virtual currencies.
Some of the tokens are traded to offer real world benefits to the buyer. But critics say these benefits are negligible – one offered a chance to vote for songs to be played in stadiums – and clubs don’t have enough protection for fans. Club specific cryptocurrency So far, in the top five European leagues, 24 different clubs have released or are considering fan tokens, including eight Premier League teams.
Most offer tokens similar to a club-specific cryptocurrency – virtual currencies can be bought and sold, and their value increases and decreases based on supply and demand. Some clubs, like Manchester City, also sell digital collectibles known as NFTs (non-fungible tokens). Most of the clubs that offer fan tokens have subscribed to a company called Socios that organizes the initial sale and subsequent trading of the virtual
Socios told BBC News that he had sold $ 270 million to $ 300 million worth of coins through his app. I wouldn’t say how much money goes directly to the clubs. Buyers must first convert their money into the company’s own cryptocurrency, Chiliz.that many buyers are speculatively exchanging their tokens like other cryptocurrencies in an attempt to make money. The research, conducted by crypto analysts Protos, suggests
But the value of many fan tokens had decreased since the clubs initially sold them. BBC News asked all Premier League teams and some of the top European teams about their plans and opinions on the new trend. Only one was happy to comment. We have not sold these products and we have no plans to enter these markets.
A Brighton and Hove Albion spokesperson said currencies, but other platforms, including Binance and Bitci, are also growing. Fan tokens are traded more actively than you might expect for this type of fan engagement product,” said Protos news director David Canellis. In general, small cryptocurrencies like these fan tokens can be incredibly volatile due to the small number of people wanting to trade them.