Crypto has potential to revolutionize fan engagement by empowering and rewarding interactions.

Entertainers have engaged their fans differently since the early Olympic games in ancient Greece. However, the advent of technology has transformed how people consume their favorite entertainment content. At the same time, technology has been heavily criticized for birthing a fragmented attention span. Unfortunately, this makes winning audience attention in the internet era more complex, a factor many experts attribute to an oversaturated content market.

Only brands leveraging insights, behavioral evaluation, and incentivizing their audiences can map their fans’ journeys, understand audience needs, and forecast future interactions. As such, cryptocurrencies and the blockchain have played a central role in achieving this fan engagement model.

In recent years, decentralized communities and fan tokens have gained considerable attention as a complement to Web2’s fan engagement methods, such as limited edition giveaways, contests, and merchandise. Most will agree the earlier methods of fan engagement faced logistical problems. For that, the upcoming years could witness fan tokens become the standard method for elevating engagement.

Fan Tokens and NFTs in Fan Engagement

A fan token is a cryptocurrency that enables holders to access exclusive fan-related benefits.  Examples of such benefits include voting on key decisions or receiving community incentives.

Both a fan token and a non-fungible token live on the blockchain. Unlike a fan token, a non-fungible token cannot be replicated. Therefore, an NFT usually represents ownership, serves as a digital collective, and can sell on the secondary markets for profit.

While fan token holders can gain exclusive membership into decentralized communities, an NFT carries features such as ticket rights, a display badge, or a profile picture.

The PSG token (PSG), Juventus (JUV), and Manchester City (CITY) are examples of sports fan tokens.

Some of the benefits of fan tokens include:

• Serves as an alternative revenue source for sports brands and artists

• Elevates interaction between a brand and its fans

• Empowers and promotes community building and growth

Fan tokens are common in sports leagues rather than with entertainment brands. However, NFTs are also finding their way into the sport.

Take, for instance, the logistics behind distributing sports memorabilia. Stakeholders need to account for all created units of memorability when it comes to traditional sports. Today, the power of NFTs has enabled sports organizations to sell digital sports memorabilia to worldwide fans. Thereby eliminating reliance on logistics, distribution channels, or retail partners for distribution.

Fan Tokens and the Big Film Franchises

Through fan tokens, big film franchises can have their fan communities take part in democratic voting for actors they would love to see on set. As you’ve noticed, this is the DAO model, and these fan tokens act as the fuel. The more tokens you have, the stronger your influence on critical decisions. For this reason,  fans will feel more associated with the brand if they hold these tokens since they are now part of crucial decision-making.

Conclusion

As cryptocurrencies continue increasing in popularity, many new projects will continue emerging. The encroachment of cryptocurrencies into entertainment and sports shows their massive potential to disrupt multiple industries.

One noticeable concern is brands mistakenly treating blockchain as an all-in-one solution. For this reason, they have ended up executing cryptocurrencies in places where they are not needed. On top of that, fans may need help understanding the value proposition of a given token. As such, business developers need to understand their audiences and build a relatable token that fans not only understand but empowers them to remain loyal.

Nonetheless, the blockchain is here to stay, and we are likely to see massive progress in its adoption across entertainment and sports beyond 2024.