What a Binance Fan Token is and how you can make money from it

binance fan token

Binance Fan Token (BFT) is a special blockchain platform that is part of the Binance ecosystem. The service was recently launched in the autumn of 2021. However, the platform has already launched fan tokens from football clubs such as S. S. S. Lazio, Santos and FC Porto.

Let’s take a look at the new Binance Fan Token project, its features and opportunities. Also, let’s talk about how you can earn on the platform and is it worth investing in the new sector now?

What are fan-tokens?

fan tokens

Fan Tokens are standard digital coins that run on different blockchains. In the case of the BFT service, “local” fan tokens run on the Binance Smart Chain blockchain, which makes sense given how the company promotes its own developments.

Fan-Tokens, along with other crypto-assets, are traded on centralized cryptocurrency exchanges.

They can be used for:

  •       buying various items from official football club shops;
  •       obtaining unique NFTs for collection or long-term investment;
  •       voting for changes and offers;
  •       and, of course, as a speculative coin.

Every project launched on Binance Fat Token first undergoes an IEO (Initial Exchange Offering) on Binance Launchpad (an incubator for new DeFi, GameFi and Fan projects).

Fan tokens are referred to as a new kind of interaction between the football club (players) and loyal fans. Fan token holders can enjoy privileges and participate in various sweepstakes and club life. Therefore, the idea of fan tokens quickly became popular. Today, the fan token sector is comparable to the NFT market in terms of turnover, which isn’t bad, given the hype surrounding the new irreplaceable token technology.

Features of the Binance Fan Token

The platform from Binance isn’t the first project dedicated to fan tokens. Initially, football clubs (AC Milan, Barcelona, Juventus) launched their coins on the Chiliz blockchain. It is the startup that introduced the very notion of fan-token and provided a convenient adaptive platform for the deployment of blockchain projects.

Binance has picked up the initiative, creating an analogue within its own ecosystem.

Features of the platform:

  •       trade of club merchandise via the Fan Token platform;
  •       the purchase of tickets for matches and trips to tournaments;
  •       obtaining limited edition NFT tokens for collection or subsequent resale, both on the local NFT Marketplace and on external platforms;
  •     participation in voting;
  •       participation in various exclusive sweepstakes and promotions;
  •     opportunity to receive unique prizes – a meeting with a favorite player, autographed merch, participation in various closed events, etc.

In the short term, token capabilities will be expanded.

How to buy or sell fan tokens on Binance Fan Token

buy sell fan token

Several ways of buying/selling fan tokens are now available. These are:

  1. Purchase with a bank card in the currency of your country, including rubles or hryvnias (this way is closed to users from Belarus).
  2. You can also buy tokens on the regular spot market in pairs using cryptocurrency, fiat or stablecoins.
  3. Buying tokens on an open p2p marketplace, which is also built into the Binance ecosystem.
  4. Obtain tokens through an initial public offering on Binance Launchpad, using BNB or USDT as stake collateral.

Some fan-tokens are traded on other centralized cryptocurrency exchanges, but the best place to buy them is on Binance.

How can I make money from fan tokens?

There are three ways:

  1. Classic spot trading. Your task is simple – buy cheaper, sell higher.
  2. Building an investment portfolio with long-term contracts in fan-tokens. Experts predict that this sector will grow strongly, and independently of Bitcoin and other significant digital assets.
  3. Take part in token allocation via Binance Launchpad.

The third way is the most popular, as it allows you to make a good profit in a short period of time. The bottom line is that the new tokens aren’t traded on the spot market before distribution and therefore have a unique price. Users who participate in the distribution through Launchpad essentially become coin suppliers to the spot market. They are the ones who form the initial supply, selling the tokens they receive at a high price.

Later, tokens almost always lose value due to oversupply in the market (a classic example of inflation). However, after a few months the exchange rate stabilizes and gradually enters an uptrend.

Conclusion

The Binance Fan Token platform will grow with the company’s other services anyway. This is inevitable. The question is whether fan tokens will grow? There is no definite answer, but many believe it has good investment potential.