In the year of the World Cup, this article analyzes investment opportunities in the fan token track

1. Binance focuses on the layout and has the opportunity to set off the "Fans Summer" craze

Fan tokens are almost a sector created by Binance. In the past two years, most of the projects launched on Binance's launchpad and launchpool platforms are mainly fan tokens. A special Binance fan token platform has also been built, which shows the degree of attention.

For a long time, Binance has been adhering to the principle of "lead not follow" and has set off a wave of hot spots in the currency market many times. Taking advantage of the World Cup hot spots and hyping the fan token sector to attract a large number of new users to the crypto industry will be an important motivation for Binance to make markets.   

2. The huge fan base behind the fan token economy

In May 2022, the Ticketgum website conducted a study on the increase in social media fans of major football clubs this season. The study found that Messi and Ronaldo brought a lot of fans to their respective clubs after their transfers last summer, with Paris ranking first with 20.4 million and Manchester United ranking second with 13.3 million. According to statistics, Paris has the highest increase, with more than 20.4 million new fans this season, especially within a week of Messi joining, their number of fans increased by 24%, and nearly 10 million people followed Paris on social media.  

The top five football clubs in terms of the number of fans on social media:

Real Madrid: 116 million

Barcelona: 108 million

Paris: 59.3 million

Manchester United: 57.6 million

Juventus: 53.2 million

Those who follow news about trading platforms know that large trading platforms such as Binance, OKX, FTX, and CB all like to sign stars and sponsor teams. The main reason is that they value the popularity of fans behind the stars, which can bring a large number of new customers to the trading platforms.

3. The World Cup Year that comes once every four years

In the 2018 World Cup, the soc wicc of the World Cup event prediction section started three months before the World Cup and rose dozens of times. With the Qatar World Cup approaching on November 21 this year, you can consider ambushing fan tokens two months in advance. If the market value of fan tokens is deeply linked to the value of football clubs and attracts a large number of fans to speculate, fan tokens have a greater chance of 5-10 times the current price, and the market value will reach 100 million US dollars.

For capturing sector opportunities, timing is more important than price selection. There are several situations to judge the launch of fan tokens:

1. ETH 2.0 concept-related currencies are extinguished or distributed at high levels, upgraded and merged in September, the speculation ends, and funds begin to enter fan tokens;

2. Binance fan tokens suddenly start to explode;

3. World Cup-related news or favorable cooperation in the currency market begin to appear frequently.

Finally, the risk that needs to be reminded is that currently 80% of the chips in most fan tokens are concentrated in the hands of the clubs, and the main uses of fan tokens are governance voting, fan rewards, and staking to obtain NFTs. They do not capture the income and commercial value of football clubs, so they cannot be held as value coins for the long term.

Binance Fan Token's layout will promote the integration of fan economy into the cryptocurrency field. Fan Token belongs to the SocialFI track, and we may see SocialFi and GameFi become the main driving force for the outward development of the entire crypto industry.

This article comes from a contribution and does not represent the views of BlockBeats

Original link