What Would Make U.S. Fans Own Their First Fan Token®?

As Chiliz continues its U.S. expansion, let’s take a moment to explore the reasons why U.S. sports fans say they’d consider owning their first Fan Token®.

The prospect of unlocking exclusive perks and owning collectibles backed by official team licensing each scored highest (26%) when U.S. sports fans were asked what would make a Fan Token® worth owning, according to the Chiliz Global Fan Report: U.S. Edition.

These findings offer a useful indication of the kind of things U.S. sports fans take into account when considering owning a Fan Token® for the first time.

But even more than that: they also align with the very foundations these assets are built on.

And for the five U.S college programmes currently undergoing official Fan Token® launches – Maryland, LSU, Michigan State, Penn State and Texas A&M – they provide something immediate and concrete to work with, as the institutions forge new technological bonds with their fans and communities.

What Do Fans Want From Digital Ownership?

When 15,000 fans of U.S. sports from every corner of the globe were asked what would make a Fan Token® or digital collectible worth owning, the answers pointed to a range of motivations, spanning practical benefits, official recognition, sporting identity, and deeper connections with their favourite teams.

What makes a Fan Token® or digital collectible worth owning?	Share
Unlocks perks	26%
Officially licensed by the league or team	26%
Looks cool or nostalgic	24%
Gives a deeper connection to clubs	18%
Trading based on team performance	14%

It’s interesting to note that the least-noted motivation for owning a Fan Token® or digital collectible was ‘trading based on team performance’.

Contrary to the notion that cryptocurrency technology is primarily a method of increasing wealth, the findings reveal a much more pronounced focus on interactivity, transparency, and loyalty among sports fans.

Which Perks Would Attract Fan Token® Ownership?

As per Socios.com’s Sept. 29 update, individual features and unique tokenomics are still being developed alongside the five universities taking part.

Specific applications have yet to be defined, but priority ticket access, exclusive rewards, meet-and-greets with players, and fan voting on team-specific decisions are among the perks that typically accompany Fan Token® ownership.

During a recent appearance on FOX Business News, Chiliz founder and CEO, Alexandre Dreyfus, also noted the potential for additional perks, such as voting on jersey designs, stadium music, or player shirt numbers.

But underneath all of these perks lie a bedrock of interactivity and transparency enabled by blockchain technology, as Dreyfus emphasized during his appearance on FOX Business.

“The biggest point of doing blockchain is really the transparency of the voting. The fact that when fans decide that they want to have this jersey next season, or that music in a stadium, or the fact that they just signed a new player and that’s the new number they’re going to put on the jersey… that’s all on chain,” said Dreyfus.

Why Does Official Licensing Matter?

Official licensing was the most quoted answer (26%) in the survey alongside access to perks, while appearance and nostalgia attracted 24%

This tells us that while fans would understandably like digital collectibles that looked attractive and reminded them of great sporting moments from the past, those collectibles would also have to be validated by having an official link to the club, team or college in question.

The proliferation of fake memorabilia is a problem that’s plagued every sport. Fortunately, thanks to the blockchain technology underpinning Fan Tokens, that’s not a problem that Maryland, LSU, Michigan State, Penn State or Texas A&M will have to worry about.

Additionally, on the regulatory side, the March SEC–CFTC guidance names Fan Tokens as examples of digital collectibles, and recognises that their hybrid characteristics could also place them within the category of digital tools.

This means that neither the colleges nor their fans will have to worry about their assets being classed as securities, providing peace of mind that their collectibles are still genuine and authentic in the digital realm.

How Awareness Becomes a First-Time Purchase?

Chiliz’ research found that 30% of U.S.-based respondents were aware of Fan Tokens and digital collectibles, but had not owned either.

The number of potential triggers which might result in a first-time Fan Token® buy are likely as many as the number of potential buyers.

Alongside the reasons outlined by the results of the survey, an initial plunge into the world of Fan Tokens and digital collectibles could be spurred by any number of cultural or societal events, as well as the influence of friends and family.

After wading through the stats, facts and percentages, at least one thing becomes clear. The U.S. sports arena – both in the stands and the boardroom – is eager for digital collectibles that provide real practical value, bring fans closer to their teams, and have the regulatory clarity that gives all parties peace of mind.

Fan Token® digital assets are just one type of digital collectible, but right now they’re the only ones that tick all of those boxes.

Greg Thomson

Fan Tokens Market Reporter