Lazio fan tokens can now earn returns by staking the tokens on Binance. But the fan token, in general, has been performing poorly. A number of sporting clubs such as Machester City, Porto Santos, Barcelona, Formula, AC Milan, etc. have issued their own set of tokens.
Experts highlighted that despite the overall poor performance, fan tokens are seeing huge progressive sales. In March, the tokens touched $3.5 billion in sales alone. But then again the question of whether fan tokens actually provide utility or not comes to the fore. Analysts attributed the poor performance of fan tokens to a lack of interest in actually promoting them.
Oliver Bell, XCAD Network CEO, says clubs do not actually promote them or the utility tokens. He believes that the people that buy the tokens are not necessarily fans of the sporting clubs, but are actually crypto enthusiasts. And it could also be said that the disinterest in the tokens is the result of the clubs not seeing them as anything other than a short-term financial opportunity.
In regards to the utility token offers, there is hardly any direct connection between the fan token and the sporting club. It points out that club fans are not the ones buying the tokens. An example is the Juventus and PSG tokens. They have utility associated with the club – fans holding Juventus tokens can buy VIP tickets, while PSG token holders can vote on the club slogan and team’s design. These tokens provide minimal benefits, suggesting that most holders are nobody but speculators who want to sell as soon as possible.
Miguel Schweizer, CEO of Decrypto – a Buenos-Aires crypto exchange and wallet, said he would never keep fan tokens in his investment portfolio for the long term. He described the tokens as “trade opportunities”. Schweizer purchased PSG fan tokens when it was rumored that Lionel Messi was moving to the club. But he quickly sold the tokens for a profit. The price of PSG tokens has fallen significantly, it’s only worth $15.27 today.
Alexandre Dreyfus, the founder of Socios, says the tokens aren’t investment assets but provides a service. He explained that it matters for fans to be recognized by the club as someone who belong to the community.
