What's up fellow cryptoheads, today I have got an interesting thread for you guys where you will learn about fan tokens and how you could make money trading them.
Well fan tokens are tokens representing a sports team popularity a football/Soccer team. These tokens could be bought by the fans of the respective football team so as to participate in few of the club decisions, basically it gives the fans a voting right to some of the team's decision. These fan tokens could be brought from crypto exchanges like binance and FTX. Now you are wondering how one gets to make money with them, right?
Interesting part is that these tokens can be brought and sold by literally anyone , i.e even if you are not an actual fan of a team , you could trade their tokens on crypto exchanges like binance, now coming to the profit making part, you could just look at trending or well performing teams and buy their tokens, usually these tokens would pump very very high when their respective teams are playing well, when the team is likely to win a trophy or win a major trophy these tokens would pump like crazy in trading market. Big news/rumours could also hike the prices of these tokens, for eg: When messi was announced to PSG their token pumped like anything, I bought PSG tokens when messi to PSG rumors started coming in and when it was confirmed later to be real news the coin pumped so much and made me 3X profit.
Now naturally you would ask me about people shorting these coins/tokens when they pump. Fortunately margin trading is not enabled for these coins, so it's easy for them to pump during important matches like league final days or during a champions league semi final or final. My tip for you would be to buy them (only top team tokens Manchester City(CITY) , PSG etc) during a bear / dip market and sell them for at-least 3X profit.
In a bear market they wouldn't perform very well but in a bull market they are very easy modes to make money.
Pro tip: Manchester city token is trading at $10.65 /token on binance right now, they are very likely to win the English premier league this year , and mark my words when they approach the final days of the English league this token would reach at least $40 easily. Check the chart of PSG or Atletico Madrid(ATM) to understand what I am talking about. I have been observing sports tokens especially football tokens for a while and they have never disappointed me.
Most of these tokens are made by socios.com in partnership with respect the teams. You might have heard of Socios through Chz aka Chilliz. Recently binance have started issuing sports tokens by themselves , Lazio and Fc Porto are 2 such tokens but, I haven't observed them yet and so I wouldn't be able to comment on them.
Like ICO 's and IEO's socios have a Fan token offering (FTO) before launching every coin/token, this is where you get to buy them for cheap before they launch on exchanges . I would say participate in FTO's only if the lanuch token is of a very very famous team or else you might get rekt.
So in short, buy famous crypto fan tokens when they are in dip and sell them once you make 2x to 3x profits, also keep in mind these coins would dump really soon after the team wins a trophy as people would start selling for profit booking. So to be on safe side sell the tokens in 2x profit or keep a stop loss once you have 2x gains, happy earning.