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Fan Tokens Have a Big Utility Problem
Fan Tokens have become popular assets in the crypto industry. According to Fan Market Cap, there are now 82 fan tokens in existence with a market cap of more than $296 million. They have a diluted market value of over $1.8 billion. So, are fan tokens dead?
What are fan tokens?
Fan tokens are financial assets that leverage the concept of blockchain in fan engagements. They are issued by popular teams that want to raise money and take part in the growing blockchain sector.
Most fan tokens in existence were issued by leading teams like Paris Saint-Germain, FC Porto, Barcelona, and Manchester City. Sports organisations like the Argentine Football Association and Portugal National Team have also issued their tokens. Similarly, F1 team Alpine, has a token.
The biggest fan token in the market is Lazio, which is valued at over $30 million. Others are Santos, Paris Saint-Germain, FC Porto, and Barcelona among others.
The concept of fan tokens is easy to understand. Teams offer these token holders and provide perks to their holders. For example, the PSG token gives holders the ability to vote on some minor topics. For example, PSG token holders can vote on the best player of the season or the best part of the season.
Further, token holders can be given discounts when buying in a store or when purchasing tickets to attend matches.
Fan tokens utility problem
Fan tokens have several major problems that they need to solve before they go mainstream. First, like Bitcoin, these fan tokens are mostly not used according to their intentions. Buyers rarely buy a fan token because of their utility. Instead, they buy them as an investment.
This challenge can be solved by providing real utility to fan token holders. For example, token holders could be given a bigger role in how a club is run. A good example is where they are asked to vote for a new team member.
Today, the votes they are asked to participate in are not all that important. The last vote by FC Porto was for holders to choose the sports practice session they wanted to watch on Instagram stories. Can you buy a fan token for such a vote?
Therefore, unless there is a real utility, fan tokens wil likely remain being a small niche in the broader cryptocurrency industry.
BNB price has noted significant gains over the past few days, surging past the psychological resistance of $300. The native cryptocurrency of the Binance Exchange has surpassed Solana to regain its position as the fourth-largest cryptocurrency by market cap. The digital currency has been rallying lately with a 7-day profit of more than 15%. Additionally, BNB has clocked a phenomenal gain of 38% in the month to date.
Binance Coin Outlook
BNB price has been on a strong bull run for the past week, breaking out of its consolidation. Even so, the asset has experienced a correction in its uptrend over the past 24 hours but remains above the crucial level of $300. BNB’s total market cap has decreased by 4% over the past day to $48 billion, while the total volume of the asset traded over the same period dipped by about 15%.
Over the past year, Binance Coin has had to cope with Fear, Uncertainty, and Doubt (FUD) on the back of the regulatory troubles of its underlying exchange. Earlier, the BNB price touched a low of $223.50, a few days after its former CEO, Changpeng Zhao, pleaded guilty to money laundering charges. However, the cryptocurrency has managed to rebound 46% in value since then.
The recent price rally has been associated with various positive developments in the Binance ecosystem, including the Introduction of the Isolated Margin Auto-Transfer Mode. This feature enables…
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
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