Expanding Use Case: Fan Tokens

Additionally, the issuance of “fan tokens” using crypto assets as well as blockchain technology is accelerating especially in the sports sector both domestically and internationally. One after another, famous overseas soccer teams have introduced their token economy. Sports clubs issue their own "tokens" to secure income, and purchasers receive benefits like privileges to attend events. Even in Japan, some soccer J-League teams have decided to introduce this scheme.

Fan tokens first gained attention in European soccer. Chiliz, which offers both Socios.com ( a fan voting and rewarding platform app) and Chiliz Exchange (a crypto asset exchange where official fan tokens can be traded). Starting with Juventus, the prestigious Italian soccer club which issued fan tokens in November 2019, elite soccer clubs in various countries including Barcelona from Spain and Paris Saint-Germain from France began to incorporate this system one after another by March 2020. As of April 2022, there are over 1.5 million users of "Socios.com” worldwide.

Fan tokens becoming popular in Japan since 2021, Shonan Bellmare has issued their club token as the first professional soccer club in Japan at FiNANCiE platform in January 2021. We now have a total of 92 cases of various sports including soccer, baseball, and basketball.

In addition to raising funds, issuing tokens is expected to open a new door to interacting with fans and attracting more fans.

While the mechanism for collecting small amounts of funds from individuals may resemble conventional crowdfunding, purchased tokens are digitally secured by blockchain technology unlike the “return (gift of return).” Since the “return” does not become transient, the owner is free to trade on the secondary distribution market. Sports clubs interact with fans who own CT through chats and special offers to maintain token value. Through token purchases, fans may also benefit from voting opportunities and special privileges within the community, as well as earnings from transactions in secondary distribution.

Today, the token economy is steadily expanding especially among sports clubs, and FiNANCiE is expected to launch deeper into the token economy of the entertainment sector and creative individuals.

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