What are Fan Tokens of soccer teams and how they work

Fan Tokens have also become part of the main Italian soccer teams. It's logical to wonder what they are and how they work, let's see it together

The fact that the current champions of Inter were among the first in Italy to "give in" to the cryptocurrency market, placing their Fan Token in plain sight, has increased interest in these tools that are depopulated in the Italian league. Many have wondered what Fan Tokens are and how they work.

Because of Covid-19 and the restrictions to contain the pandemic, Serie A teams have been missing an important part of their budgets, the one due to the sale of tickets and season tickets for the stadiums. And if a conspicuous part of the "traditional" companies has lived the period with difficulty having to somehow save on expenses, some Italian football clubs have found respite with sponsorships to companies active in the cryptocurrency market, which seems to have experienced no crisis. The crypto market is a thriving and rising market, so it is not surprising that clubs like Inter, Milan or Rome have succumbed to their flattery and many other clubs are interested spectators.

What are Fan Tokens and how they work

Simplifying, Fan Tokens can be seen as "shares" purchased by the fan to have a say in the moves of a soccer club. To have an influence, in short, marginal, obviously. And in an equally obvious way, a Fan Token is traded in cryptocurrencies, so to buy one or more of them you need to exchange your money in cryptocurrency (but don't worry, it's a process managed by the platform itself that you turn to).

Of course, the value of the Fan Token, like a cryptocurrency, fluctuates over time: it can gain value, or lose it. In perspective, the Fan Token mechanism can be very important for a club, which in this way can finance itself quickly, without passing through the banking system and without the "real" shares being "diluted", all exploiting its own fan base around the world, and for clubs like Inter means for example having a base of 55 million potential investors.

But how can a Fan Token affect the life of a club? Simple. Management can launch surveys to token holders through dedicated apps with the decision being made by fans. The topic can be merchandising, the design of the buses the team travels in, musical anthems but also, writes Socios, choices about the starting eleven.

Inter's Fan Token

The Italian champions have signed an agreement with Socios that allows the company to be present on the jerseys of Inter players as main sponsor instead of Pirelli: the Fan Token logo on the chest is due to the agreement between the two companies that will bring about 20 million euros per season.

Juventus Fan Tokens

Juve also has its own fan tokens, which can be purchased on the Socios platform.

Milan's Fan Tokens

Milan has struck a deal with BitMEX, one of the world's leading crypto platforms, which brings the company's logo on the left sleeve of the Rossoneri jerseys and into the club's coffers around €3-4 million a year.

Roma's Fan Tokens

Digitalbits has become Roma's main sponsor replacing Qatar Airways. The crypto company's logo will remain on the Giallorossi's chest for three years during which time a total of €36 million will be collected.