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.
Formula 1 teams owned by Aston Martin and Alfa Romeo have reportedly become the first Formula to launch cryptocurrency fan tokens. The pair join fellow European sports teams such as FC Barca, Manchester City, Paris Sait-Germain, and AC Milan in offering fan tokens.
F1 racing is a huge industry racing toward the future
As of Thursday, tokens will be available to be purchased and 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.
Socios fan tokens gaining traction
Socios 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.
“In 2020, as a company, we sold more than $30 million of tokens for all of our partners. And because more or less we were on a 50/50 basis, it means that the clubs generated more than $15 million in total. There are some clubs that got more than $5 million each, which, in the COVID-19 world, is very good fresh money, and very much welcome for them.”
Dreyfus went on to talk about how the popularity of these tokens in F1 and other sports is the beginning of a new era. “In the next few years, a generation of passive fans will shift into active fans. That transition will take place through transaction fan engagement on our platform,” he said.
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.