Lazio Tokens Can Now Be Staked On Binance, But Fan Tokens Are Falling

Holders of Lazio Fan Tokens are now able to stake them on Binance and receive a notional “profit” denominated in the same tokens. However, the overall performance of fan tokens, including LAZIO, has dropped dramatically. Why?

Although so far only the Lazio token has claimed utility for staking, fancoin performance has generally been poor. Here, for example, is the price chart of LAZIO itself for the last 24 hours:

Many clubs, from football to Formula 1, have issued tokens, including Manchester City, Lazio, Porto, Santos, Barcelona, ​​Milan and Trabzonspor. However, most of these tokens have only disappointed users, with many losing value just a few days after they were launched.

However, despite their overall poor performance, Fan Tokens recorded huge progressive sales. In March alone, token sales reached approximately $3.5 billion.

Are fan tokens really useful?

One of the most important questions to ask is, do these fan tokens really do any good? One of the main reasons for the low performance of fan tokens that they have shown so far is due to the clubs that created them. Ultimately, they usually have no interest in actually promoting the tokens.

“The problem with fan tokens is that clubs don’t actively promote the tokens themselves or their utility,” said XCAD Network CEO Oliver Bell. The people who buy them are not necessarily club fans; the only buyers are crypto enthusiasts.”

According to Bell, perhaps the lack of interest in these tokens is the result of the fact that the clubs themselves do not really see anything in the tokens, other than a short-term financial opportunity to earn from their sales.

Also See: Large Holders Of Ethereum Actively Bought One Altcoin

Also, it is very rare that there is any “direct” connection between the fan token and the club in relation to the utility that the token offers. In other words, club fans don’t usually buy tokens – but why?

For example, Juventus and PSG tokens are useful for the club. Juventus are allowing fans to use the token to purchase VIP tickets, while PSG token holders have been given the opportunity to vote on the club’s slogan and team design.

Another rug?

However, both cases give token holders minimal benefits, giving the impression that most of them are none other than speculators who want to sell them as soon as possible.

“I would never hold them in my investment portfolio for a long time,” said Miguel Schweitzer, 29, chief executive officer of Decrypto, a Buenos Aires-based exchange and wallet. These are just trading opportunities.”

Schweitzer bought PSG fans’ tokens when it became known that Lionel Messi was moving to the club, but quickly sold them, albeit soon after, for a profit. The price then dropped significantly when PSG Fan Tokens reached their ATH in April 2021 ($58.79) – they are worth just $15.27 today.

But isn’t it too early to judge these tokens?

Socios founder Alexander Dreyfus believes that these tokens are not investment assets, but were created to provide a service:

“We think it’s important for the fans that the club, wherever they are, recognize them as members of the community,” he said. Secondly, as soon as I participate in the membership program, it is normal that I have some influence. Of course, it can’t happen on the field, it can’t happen in business [on the side], but there are many other things that can be done. And you can still try to push the clubs to give fans more options. Our job is to push clubs to give more to their fans.”

Thus, according to Dreyfus, the fall in the price of fan tokens does not necessarily affect their long-term value. He noted that Socios has 57 fan tokens, up from 20 last year. This, he says, is a sign of growing interest in tokens.

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