A type of alternative digital asset that represents tokens sold to supporters of a sport team (e.g., a football club) or a similar cause or case (e.g., music bands, artists, and other public figures). These tokens are uniquely identifiable digital assets branded in an issuing club’s colors or celebrity’s images or thematic presentations, etc.

As a specific type of digital assets, fan tokens carry certain privileges and benefits, particularly allowing fans to vote in official team polls, predict results, play games, choose their favorite players, among others, while accumulating reward points. The benefits may also include exclusive voting rights, unlocking non-fungible tokens (NFTs) and badges, and enjoying unique fan experiences. In essence, fan tokens are a form of cryptocurrency that grants holders, in addition to accumulative rewards, access to a variety of fan-related membership perks.

More specifically, in addition to their status as digital merchandise, the fan tokens also have an added value. This value is reflected in certain privileges granted to the token owner such as access to exclusive owner’s merchandise, special VIP events, and voting rights on certain club matters ranging from defining the messages that should be emblazoned on club scarves, to the designs of new kits and naming rights to training facilities. This type of alternative digital assets creates a new level of interaction with sports fans, who are among the most invested stakeholders globally in any organization or industry.

Fan tokens can benefit fans by means of direct management and a closer relationship with their clubs, and investors who also show interest in the tokens and expect higher returns with the passage of time. The performance of club-issued fan tokens (and hence, their prices) may be affected by clubs’ match results, where losses (wins) in a certain tournament (league) lead to negative (positive) abnormal returns in these tokens.

Fan tokens are also known as crypto fan tokens.