Crypto Football Tokens See Uptick Ahead Of Busy Summer

This summer’s football extravaganza is sure to attract a lot of attention. As well as being able to bet on sports with Bitcoin, thanks to the increased popularity of crypto gambling, fans will be able to back their team with the purchase of fan tokens. Fan tokens are distributed by national sides, as well as club sides, and can be bought by anybody, typically offering a way for people to interact and engage with teams. Holders get access to reduced merchandise, free raffles, and even, in some cases, the opportunity to attend games and meet the players. Betting with crypto instead of fiat currencies also offers players many advantages, like faster payouts and sometimes better odds.
The demand for these tokens typically goes up when the respective team is due to play and interest in them rises, and they drop again when that interest fades. Prices tend to follow suit, although speculation from traders also determines price movement. With the Euros and the Copa America taking place in June and July, and the Olympics football tournament scheduled for July and August, there is a lot of football in the coming months.
The Chiliz cryptocurrency operates the blockchain network that most of these fan tokens operate on and it has seen its market value increase around 50% from the start of the year. Interest in these tokens is rising to near World Cup levels, but analysts expect trading to die down again once the tournaments are over.
According to Coinmarketcap, which aggregates coin data for the whole cryptocurrency market, there are 91 fan tokens. This list includes club and individual player fan tokens, as well as those relating to other sports, but football has a strong showing on the list. The Argentine Football Association Fan Token has the highest market capitalization of over $18 million. Although it has seen a drop in recent days, its market capitalization is up from just over $11 million at the start of the year. The Portuguese, Brazilian, Spanish, Italian, and Croatian national teams also have fan tokens listed on the site.
As well as offering individual benefits to the teams, fan tokens also offer monetization of the fans for the team. When the tokens are distributed, they provide capital to the team. Furthermore, the tokens can even be used to instigate and take part in votes.
Fan tokens operate in the same way as any cryptocurrency. They have a finite supply of tokens, which can be bought through specific exchanges. While tokens for some of the bigger names in sports are available on some of the bigger exchanges, smaller organizations may only be able to offer their tokens through lesser-known exchanges. The tokens can usually be held in a hot wallet on the exchange’s site or, for greater security, in a cold wallet. Cold wallet storage means that the token is stored away from the exchange with wallets available on computers and mobile devices.
Fan tokens, just like cryptocurrencies, can see volatile price movements. Prices may continue to rise as a team progresses through a tournament but the lack of interest they generate if dumped out of the cup may see a significant drop. Trading is likely to remain high in the coming weeks and months, as the major