Formula 1 teams owned by Aston Martin and Alfa Romeo will be the first team launching crypto fan tokens. Earlier fellow European sports teams such as FC Barca, Manchester City, Paris Sait-Germain, and AC Milan had started offering fan tokens.
Formula One (F1) teams from Aston Martin and Alfa Romeo had a photo finish today, with both announcing the launch of crypto fan tokens on the Socios.com platform.Tweet
The tokens will be available for purchase from today and will offer owners the opportunity to be part of the team in some small ways. Ownership of these tokens allows fans to take part in the voting decisions, earn additional VIP rewards, and be offered exclusive promotions. As with many crypto tokens, they may also be traded on participating crypto exchanges.
The tokens not only offer fans the chance to be a part of their favorite racing teams, but they also provide said teams with an additional revenue stream. Racing teams who sign up for the program will earn a commission for each token sold. Additionally, a share of trading fees, that are incurred from the sale of tokens on Chiliz (CHZ) or any other crypto exchange where the tokens are accepted, go toward funding the racing teams.
The fan tokens are provided by Socios and can be bought with CHZ. Socios is a platform for fan token issuance and it has been very successful lately finding teams and leagues to get on board with their fan token program. As it stands, traders must first acquire assets in the crypto CHZ. Then, fans use those assets to purchase fan tokens, which are fully fungible digital assets living on the Chiliz blockchain. Both CHZ and the fan tokens themselves use the ERC20 token standard.
The fan tokens are team-specific and each team can only offer a finite supply of them. They never expire and, since they are fungible, they can be traded freely against CHZ. Socios and Chilz CEO Alexandre Dreyfus said about the ability for teams to earn from these tokens.
The company has been doing well bringing in teams from the racing world. The F1 announcement comes just a week after Socios found their first racing client with NASCAR’s Roush Fenway Racing Team.