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Atlético de Madrid scores with crypto fan token 

Spanish football club Atlético de Madrid is planning to increase fan engagement using blockchain-based tokens. The Fan Tokens will be available starting this autumn and are expected to be valid throughout the entire season.

Ownership gives the team’s fans the right to participate in sweepstakes and even express opinions on decisions regarding the club. Fans can also exchange the tokens for branded items.

The Spanish club isn’t the first to use cryptocurrency to provide fans with exclusive experiences. Other football clubs that have already issued tokens include West Ham United, Juventus, and Paris Saint-Germain.

What we know about Atlético’s Fan Token

Atlético’s Fan Token is the result of a collaboration between the Spanish football team and the sports blockchain venture Chiliz. Fans will be able to buy them exclusively through the “Socios” (members) platform, a crowd-management tool created by Chiliz.

Socios.com is known for promoting the concept that fans should be involved in significant decision-making regarding their favourite football clubs. The platform aims to use cryptocurrency as a way of making the fans’ voices heard. People who buy Fan Tokens get the right to vote on critical changes and influence major decisions in the club’s management.

Socios will launch the Official Fan Token by Atlético de Madrid this autumn, through a Fan Token Offering (FTO). The value of the digital asset has been set at two euros. Owners will be able to participate in polls conducted via the Socios mobile app.

Moreover, Fan Token owners get access to exclusive games and rewards through the app as well. Fans also receive incentives for time spent on the Socios app. According to the Chiliz web page:

“The more fans interact with the club through the app, the more rewards they can earn, competing for once-in-a-lifetime experiences and gaining access to exclusive merchandise, games, and leaderboards.”

How Atlético de Madrid Fan Tokens work

End-users make transactions with Fan Tokens directly on the Socios platform. However, from a technical point of view, the blockchain that supports all transfers is a permissioned sidechain.

The sidechain uses the Proof-of-Authority (PoA) consensus algorithm. However, it isn’t powered by Fan Tokens, but by Chiliz’s cryptocurrency called Chiliz (CHZ) – an ERC-20 utility token.

The Socios platform works as an internal marketplace. Fans can buy and sell Fan Tokens and even exchange them for CHZ. However, they can’t convert tokens into fiat. Instead, they can use them to buy branded merchandise from their favourite football club.

The tokenisation of the sports industry

Sports teams are increasingly ready to embrace cryptocurrency, and some of the most important football clubs in the industry have been issuing branded tokens. The collaboration between Atlético de Madrid and a blockchain-based platform is one of many examples that illustrate this new trend.

Digital tokens help sports clubs to create unique experiences for their biggest fans. New technologies make it easier to deliver more exclusive content, branded items, and interaction with the club. When people are given the right to vote in polls, they feel like their voice matters.

Cryptocurrencies are helping to bring a new meaning to being a sports fan. At the same time, the crypto world benefits from these partnerships as well. Almost half of the world’s population is interested in sports. Moreover, there are millions of fans that would go above and beyond for their favourite teams, including buying digital tokens. It’s a cost-effective way of creating awareness while connecting people with their idols.

And if just a small part of these people become crypto users, it would boost cryptocurrency adoption. Chiliz understands this pretty well, which explains why it’s going after the big fish in the sports industry.

Socios.com is a partner to football clubs in several countries. West Ham United in the UK, Paris Saint-Germain in France, and AS Roma and Juventus in Italy have already issued branded Fan Tokens.

An excellent season for Atlético de Madrid

The new token comes at the perfect time for Atlético de Madrid. The team has been having an excellent season so far. It’s currently well-placed and in the running for the title in the Spanish Championship La Liga, a competition that the club has won 10 times already.

Atlético de Madrid is currently ranked 4th in UEFA’s club rankings and will be taking part in this season’s Champions League.

Featured image from www.chiliz.com.

Christina Comben

Christina is a fintech and cryptocurrency writer with a passion for technology and starting important conversations. She draws on her years of experience as a business reporter and interviewer to bring you the most salient issues and latest developments in the cryptosphere.

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