Fan token is a digital asset that, in addition to the standard functions of trading, investing, transferring transactions, also gives the owner additional opportunities. Those privileges are voting on club decisions, rewards, merchandise designs and unique experiences.
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.
Fans can purchase digital tokens and trade them like other cryptocurrencies. Once users gain access to a set amount of fan tokens, they are granted the right to vote on a variety of matters concerning their favorite club.
The technology can be applied to any brand, organization, music fan club, etc. These days fan tokens of sports teams are developing most actively.