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Fan tokens seem to have recently come alive, and so Binance is launching a futures index for its fan tokens.
The world’s largest crypto exchange by volume, Binance, might just be more ready than most for the upcoming FIFA World Cup. As part of its preparation for the biggest single sporting event in the world, Binance has launched perpetual contracts for its fan token index. The exchange announced the launch on Wednesday via a blog post, with claims that the perpetual contracts will be live on its derivatives market from September 1.
Binance further mentioned that the new index will have up to 25 times leverage, and would track the market performance of all football club fan tokens already listed on its spot market in USDT.
Binance Fan Token Resurgence
As of present, Binance offers its fan tokens for faithful of various football clubs across Europe and South America. Some of them include Lazio, Santos FC, and FC Porto. The exchange also offers fan tokens for the Formula 1 racing team – Alpine.
While the fan tokens currently take up the top four spots in terms of market capitalization, that wasn’t always the case. Following their release, most of the tokens plummeted, much to the disappointment of users. However, that was largely due to the clubs not promoting the features as much as they should.
About the failure of clubs to promote their fan tokens, XCAD Network CEO Oliver Bell noted:
“The problem with fan tokens is (that) the clubs do not actively promote them or the utility the tokens have.”
Bell also added that the people buying the fan tokens are more crypto enthusiasts than they are fans of these clubs.
Nonetheless, the fan tokens seem to have recently come alive. According to CryptoSlam data, the top two fan tokens are up nearly 200% in the past 30 to 90 days. However, the upcoming FIFA World Cup 2022 may have played a role in this surge. The sporting event is scheduled to take place in Qatar between 20 Nov to 18 Dec.
Fan tokens are ways by which sports clubs engage more with their fans. The benefits include providing fans with exclusive access to get more involved in the decision-making processes of their favourite club. Users also get to receive VIP rewards and exclusive merchandise.