Abstract
This paper investigates the potential of blockchain-based fan tokens, a class of crypto asset that grants holders access to voting on club decisions and other perks, as a mechanism for stimulating democratized decision-making and fan engagement in the sports and esports sectors. By utilizing an extensive dataset of 3576 fan token polls, we reveal that fan tokens engage an average of 4003 participants per poll, representing around 50% of token holders, underscoring their relative effectiveness in boosting fan engagement. The analyses identify significant determinants of fan token poll participation, including levels of voter (dis-)agreement, poll type, sports sectors, demographics, and club-level factors. This study provides valuable stakeholder insights into the current state of adoption and voting trends for fan token polls. It also suggests strategies for increasing fan engagement, thereby optimizing the utility of fan tokens in sports. Moreover, we highlight the broader applicability of fan token principles to any community, brand, or organization focused on customer engagement, suggesting a wider potential for this digital innovation.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Notes
Figure A.1 in the Appendix displays a screenshot of an exemplary fan token poll from Socios.com. This poll enabled holders of Apollon Limassol fan tokens to select the 2021/2022 season kits based on three predefined answer options. Participants were limited to voting with up to 200 tokens to prevent centralization, regardless of the number of tokens in their possession. In total, 15% of all tokens voted, whereas a successful vote required at least 5% of tokens. The poll opened on Jan 07, 2021, and closed on Jan 10, 2021.
SSU Loyalty Tokens are the proprietary reward tokens of the Socios.com application, allocated to users upon advancing levels by accumulating points within the platform. Fans can earn the tokens through active engagement, including predicting match scores and voting in team polls. Initial allocation occurs upon user registration. SSU Loyalty Tokens serve a dual purpose; they enable users to partake in official decision-making polls and are redeemable for various rewards, including unique experiences, within the Fan Rewards section of the application. SSU Loyalty Tokens serve the same purpose as any other fan tokens; however, individual clubs, rather than Socios, issue polls. Therefore, these polls often concentrate on broader topics, such as leagues (e.g., “Who was the Decisive Player of LaLiga Santander 2022-23?“) or events (e.g., “Who will be the most missed player at the World Championship?“).
The FanMarketCap API classifies fan token poll types as either “integrity” or “engagement” but does not define these terms. Our analysis shows that polls labeled ‘integrity’ significantly correlate with the token limit (r = 0.84). This finding is logical because polls focused solely on engagement likely need fewer safeguards against voting fraud.
Correlation analysis and variance inflation factors (VIFs) reveal that all presented variables are suitable for regression analysis.
References
Abosag, I., Roper, S., & Hind, D. (2012). Examining the relationship between brand emotion and brand extension among supporters of professional football clubs. European Journal of Marketing, 46, 1233–1251. https://doi.org/10.1108/03090561211247810
Ante, L., Schellinger, B., & Wazinski, F. P. (2023). Enhancing trust, efficiency, and empowerment in sports – Developing a blockchain-based fan token framework. In Eu (Ed.), 2023 European Conference on Information Systems (ECIS 2023).
Ante, L., Schellinger, B., & Demir, E. (2024). The impact of football games and sporting performance on intra-day fan token returns. Journal of Business Economics. https://doi.org/10.1007/s11573-023-01187-z
Assaf, A., Demir, E., & Ersan, O. (2024). Detecting and date-stamping bubbles in fan tokens. International Review of Economics & Finance, 92, 98–113. https://doi.org/10.1016/j.iref.2024.01.039
Barcelona. (2023). FC Barcelona, more than a club - Barça is a club with a long tradition and a chequered history. barcelona.de.
Binance. (2024). Binance fan tokens [WWW Document]. Binance. URL https://www.binance.com/en/fan-token. Accessed 7 March 2024.
Blei, D. M., Ng, A. Y., & Jordan, M. I. (2003). Latent Dirichlet allocation. Journal of Machine Learning Research, 3, 993–1022. https://doi.org/10.5555/944919.944937
Boyle, B. A., & Magnusson, P. (2007). Social identity and brand equity formation: A comparative study of Collegiate sports fans. Journal of Sport Management, 21, 497–520. https://doi.org/10.1123/jsm.21.4.497
Byon, K. K., Zhang, J. J., & Baker, T. A. (2013). Impact of core and peripheral service quality on consumption behavior of professional team sport spectators as mediated by perceived value. European Sport Management Quarterly, 13, 232–263. https://doi.org/10.1080/16184742.2013.767278
Carlsson-Wall, M., & Newland, B. (2020). Blockchain, sport, and navigating the sportstech dilemma. In S. L. Schmidt (Ed.), 21st century sports: How technologies will change sports in the digital age (pp. 205–218). Springer International Publishing. https://doi.org/10.1007/978-3-030-50801-2_12
Cayolla, R., & Loureiro, S. M. C. (2014). Fans club brand relationship: Football passion. International Journal of Business and Globalisation, 12, 82. https://doi.org/10.1504/IJBG.2014.058032
Chiliz. (2023). Chiliz explorer - Tokens [WWW Document]. Chiliz. URL https://explorer.chiliz.com/tokens. Accessed 28 July 2023.
Cohen, A. (2020). FC Barcelona’s sale of fan tokens nets $1.3 million in single day [WWW Document]. Sports Business Journal. URL https://www.sporttechie.com/fc-barcelona-fan-tokens-initial-sale-cryptocurrency. Accessed 5 Dec 2022.
Dashti, A. A., Haynes, R., & Murad, H. A. (2022). The impact of media globalization of English football: The Kuwaiti experience. International Journal of Sport Communication, 15, 158–166. https://doi.org/10.1123/ijsc.2022-0025
de Ruyter, K., & Wetzels, M. (2000). Customer equity considerations in service recovery: A cross-industry perspective. International Journal of Service Industry Management, 11, 91–108. https://doi.org/10.1108/09564230010310303
Demir, E., Ersan, O., & Popesko, B. (2022). Are fan tokens fan tokens? Finance Research Letters, 102736. https://doi.org/10.1016/j.frl.2022.102736
Ersan, O., Demir, E., & Assaf, A. (2022). Connectedness among fan tokens and stocks of football clubs. Research in International Business and Finance, 63, 101780. https://doi.org/10.1016/j.ribaf.2022.101780
Festinger, L. (1954). A theory of social comparison processes. Human Relations, 7, 117–140. https://doi.org/10.1177/001872675400700202
Filo, K., Lock, D., & Karg, A. (2015). Sport and social media research: A review. Sport Management Review, 18, 166–181. https://doi.org/10.1016/j.smr.2014.11.001
Fisher, R. J., & Wakefield, K. (1998). Factors leading to group identification: A field study of winners and losers. Psychology & Marketing, 15, 23–40. https://doi.org/10.1002/(SICI)1520-6793(199801)15:1%3c23::AID-MAR3%3e3.0.CO;2-P
Frevel, N., Beiderbeck, D., & Schmidt, S. L. (2022). The impact of technology on sports – A prospective study. Technological Forecasting and Social Change, 182, 121838. https://doi.org/10.1016/j.techfore.2022.121838
Funk, D. C., & James, J. (2001). The psychological continuum model: A conceptual framework for understanding an individual’s psychological connection to Sport. Sport Management Review, 4, 119–150. https://doi.org/10.1016/S1441-3523(01)70072-1
Funk, D. C., & James, J. D. (2006). Consumer loyalty: The meaning of attachment in the development of Sport Team Allegiance. Journal of Sport Management, 20, 189–217. https://doi.org/10.1123/jsm.20.2.189
Glebova, E., & Mihalova, P. (2023). New currencies and new values in professional sports: Blockchain, NFT, and fintech through the stakeholder approach. Journal of Physical Education and Sport, 23. https://doi.org/10.7752/jpes.2023.05153.
Hamari, J., & Sjöblom, M. (2017). What is eSports and why do people watch it? Internet Research, 27, 211–232. https://doi.org/10.1108/IntR-04-2016-0085
Hambrick, M. E., Simmons, J. M., Greenhalgh, G. P., & Greenwell, T. C. (2010). Understanding professional athletes’ use of Twitter: A content analysis of athlete tweets. International Journal of Sport Communication, 3, 454–471. https://doi.org/10.1123/ijsc.3.4.454
Hill, J. S., & Vincent, J. (2006). Globalisation and sports branding: The case of Manchester United. International Journal of Sports Marketing and Sponsorship, 7, 61–78. https://doi.org/10.1108/IJSMS-07-03-2006-B008
Hitlan, R. T., Cliffton, R. J., & DeSoto, M. C. (2006). Perceived exclusion in the workplace: The moderating effects of gender on work-related attitudes and psychological health. North American Journal of Psychology, 8.
Huang, S. L., & Chen, C. T. (2018). How consumers become loyal fans on Facebook. Computers in Human Behavior, 82, 124–135. https://doi.org/10.1016/j.chb.2018.01.006
Huettermann, M., Uhrich, S., & Koenigstorfer, J. (2019). Components and outcomes of fan engagement in team sports: The perspective of managers and fans. Journal of Global Sport Management, 1–32. https://doi.org/10.1080/24704067.2019.1576143
Hunt, K. A., Bristol, T., & Bashaw, R. E. (1999). A conceptual approach to classifying sports fans. Journal of Services Marketing, 13, 439–452. https://doi.org/10.1108/08876049910298720
Isenberg, D. J. (1986). Group polarization: A critical review and meta-analysis. Journal of Personality and Social Psychology, 50, 1141–1151. https://doi.org/10.1037/0022-3514.50.6.1141
James, J. D., Kolbe, R. H., & Trail, G. T. (2002). Psychological connection to a new sport team: Building or maintaining the consumer base? Sport Marketing Quarterly, 11, 215–225. https://doi.org/10.5555/20033025814
Jehn, K. A. (1995). A Multimethod examination of the benefits and detriments of Intragroup Conflict. Administrative Science Quarterly, 40, 256. https://doi.org/10.2307/2393638
Jenny, S. E., Manning, R. D., Keiper, M. C., & Olrich, T. W. (2017). Virtual(ly) athletes: Where eSports Fit within the definition of Sport. Quest, 69, 1–18. https://doi.org/10.1080/00336297.2016.1144517
Katz, E., Blumler, J. A. Y. G., & Gurevitch, M. (1973). Uses and gratifications research. The Public Opinion Quarterly, 37, 509–523. https://doi.org/10.1086/268109
Kim, J. K., & Hull, K. (2017). How fans are engaging with baseball teams demonstrating multiple objectives on Instagram. Sport Business and Management: An International Journal, 7, 216–232. https://doi.org/10.1108/SBM-01-2017-0002
Leyton Escobar, M., Kommers, P. A. M., & Beldad, A. (2014). Using narratives as tools for channeling participation in online communities. Computers in Human Behavior, 37, 64–72. https://doi.org/10.1016/j.chb.2014.04.013
Lopez-Gonzalez, H., & Griffiths, M. D. (2023). Gambling-like features in fan tokens. Journal of Gambling Studies. https://doi.org/10.1007/s10899-023-10215-0
Manoli, A. E., Dixon, K., & Antonopoulos, G. A. (2024). Football fan tokens as a mode of serious leisure: unveiling the dual essence of identity and investment. Leisure Studies, 1–15. https://doi.org/10.1080/02614367.2024.2301949
Marca (2022). Italian national team Fan Tokens sell out in under 24 hours [WWW Document]. https://www.marca.com/en/technology/fan-tokens/2022/03/10/622a19eb46163f62688b45b8.html. Accessed 11 Aug 2022.
Martha, G. I. R., Warnars, H. L. H. S., Prabowo, H., & Meyliana, Hidayanto, A. N. (2023). Semantic literature review on non-fungible token: Expansion area of usage & trends. In 2023 International conference on information management and technology (ICIMTech). IEEE, pp. 351–356. https://doi.org/10.1109/ICIMTech59029.2023.10277808
Mastromartino, B., & Zhang, J. J. (2020). Affective outcomes of membership in a sport fan community. Frontiers in Psychology, 11, 881. https://doi.org/10.3389/fpsyg.2020.00881
McCarthy, J., Rowley, J., Ashworth, J., & Pioch, C., E (2014). Managing brand presence through social media: The case of UK football clubs. Internet Research, 24, 181–204. https://doi.org/10.1108/IntR-08-2012-0154
McDonald, H., Biscaia, R., Yoshida, M., Conduit, J., & Doyle, J. P. (2022). Customer engagement in sport: An updated review and research agenda. Journal of Sport Management, 36, 289–304. https://doi.org/10.1123/jsm.2021-0233
Meng, M. D., Stavros, C., & Westberg, K. (2015). Engaging fans through social media: Implications for team identification. Sport Business and Management: An International Journal, 5, 199–217. https://doi.org/10.1108/SBM-06-2013-0013
Muniz, A. M., & O’Guinn, T. C. (2001). Brand community. Journal of Consumer Research, 27, 412–432. https://doi.org/10.1086/319618
Myers, D. G., & Lamm, H. (1976). The group polarization phenomenon. Psychological Bulletin, 83, 602–627. https://doi.org/10.1037/0033-2909.83.4.602
Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system.
Osborne, A. C., & Coombs, D. S. (2013). Performative Sport Fandom: An approach to retheorizing sport fans. Sport Soc, 16, 672–681. https://doi.org/10.1080/17430437.2012.753523
Otto, J., Netz, S., & Ensmenger, N. (2011). Sports fans and their information-gathering habits: How media technologies have brought fans closer to their teams over time. The MIT. https://doi.org/10.7551/mitpress/8820.001.0001
Pandita, D., & Vapiwala, F. (2023). Waving the flames of fan engagement: Strategies for coping with the digital transformation in sports organizations. Journal of Strategy and Management. https://doi.org/10.1108/JSMA-02-2022-0041
Pedersen, P. M., Miloch, K. S., & Laucella, P. C. (2007). Strategic sport communication. Human Kinetics.
Pizzo, A., Baker, B., Na, S., Lee, M. A., Kim, D., & Funk, D. (2018). eSport vs Sport: A comparison of Spectator motives. Sport Marketing Quarterly, 27, https://doi.org/10.32731/SMQ.272.062018.04
Pongsakornrungsilp, S., & Schroeder, J. E. (2011). Understanding value co-creation in a co-consuming brand community. Marketing Theory, 11, 303–324. https://doi.org/10.1177/1470593111408178
Popp, B., & Woratschek, H. (2016). Introducing branded communities in sport for building strong brand relations in social media. Sport Management Review, 19, 183–197. https://doi.org/10.1016/j.smr.2015.06.001
Pritchard, M. P., & Funk, D. C. (2006). Symbiosis and substitution in Spectator Sport. Journal of Sport Management, 20, 299–321. https://doi.org/10.1123/jsm.20.3.299
Pritchard, M. P., & Negro, C. M. (2001). Sport Loyalty Programs and their impact on Fan relationships. International Journal of Sports Marketing and Sponsorship, 3, 64–85. https://doi.org/10.1108/IJSMS-03-03-2001-B006
Qian, T. Y., Zhang, J. J., Wang, J. J., & Hulland, J. (2020). Beyond the game: Dimensions of Esports Online Spectator demand. Communication & Sport, 8, 825–851. https://doi.org/10.1177/2167479519839436
Reysen, S., & Branscombe, N. R. (2010). Fanship and fandom: Comparisons between sport and non-sport fans. Journal of Sport Behavior, 33, 176–193.
RocketFan (2023). FC Barcelona fan token [WWW Document]. RocketFan. https://rocketfan.com/asset/BAR. Accessed 28 July 2023.
Rusbult, C. E. (1980). Commitment and satisfaction in romantic associations: A test of the investment model. Journal of Experimental Social Psychology, 16, 172–186. https://doi.org/10.1016/0022-1031(80)90007-4
Saggu, A., Ante, L., & Demir, E. (2024). Anticipatory Gains and Event-Driven Losses in Blockchain-Based Fan Tokens: Evidence from the FIFA World Cup. Research in International Business and Finance, 102333. https://doi.org/10.1016/j.ribaf.2024.102333
Santos, T. O., Correia, A., Biscaia, R., & Pegoraro, A. (2019). Examining fan engagement through social networking sites. International Journal of Sports Marketing and Sponsorship, 20, 163–183. https://doi.org/10.1108/IJSMS-05-2016-0020
Scharnowski, M., Scharnowski, S., & Zimmermann, L. (2022). Fan tokens: Sports and speculation on the blockchain. Available at SSRN: https://doi.org/10.2139/ssrn.3992430
Schellinger, B., Ante, L., & Bauers, S. B. (2022). Blockchain use cases and concepts in sports: A systematic review. 2022 European Conference on Information Systems (ECIS 2022).
Socios. (2022a). Lionel Messi Joins Socios.com as global brand ambassador [WWW Document]. URL https://www.socios.com/lionel-messi-joins-socios-com-as-global-brand-ambassador. Accessed 11 Aug 2022.
Socios. (2022b). UEFA club competitions add on fan tokens launch on socios.com [WWW Document]. https://www.socios.com/uefa-club-competitions-add-on-fan-tokens-launch-on-socios-com/. Accessed 11 Aug 2022.
Socios. (2024). Socios fan tokens [WWW Document]. Socios. https://www.socios.com/fan-tokens/. Accessed 7 March 2024.
Souza, C., Rolim, A., Magalhães, J., Costa, E., Fechine, J., & Andrade, N. (2014). How a conflict changes the way how people behave on fandoms. In: CYTED-RITOS International Workshop on Groupware, pp. 335–348. https://doi.org/10.1007/978-3-319-10166-8_30
Stegmann, P., Matyas, D., & Ströbel, T. (2023). Hype or opportunity? Tokenization as engagement platform in sport marketing. International Journal of Sports Marketing and Sponsorship. https://doi.org/10.1108/IJSMS-08-2022-0157
Sundar, S. S., & Limperos, A. M. (2013). Uses and grats 2.0: New gratifications for new media. Journal of Broadcasting & Electronic Media, 57, 504–525. https://doi.org/10.1080/08838151.2013.845827
Tajfel, H., & Turner, J. C. (1979). An integrative theory of intergroup conflict. In The social psychology of intergroup relations (pp. 33–47). Brooks/Cole.
Turner, J. C., & Oakes, P. J. (1986). The significance of the social identity concept for social psychology with reference to individualism, interactionism and social influence. British Journal of Social Psychology, 25, 237–252. https://doi.org/10.1111/j.2044-8309.1986.tb00732.x
Underwood, R., Bond, E., & Baer, R. (2001). Building service brands via social identity: Lessons from the sports marketplace. Journal of Marketing Theory and Practice, 9, 1–13. https://doi.org/10.1080/10696679.2001.11501881
Vidal-Tomás, D. (2023). Blockchain, sport and fan tokens. Journal of Economic Studies, MPRA Paper 111350, University Library of Munich, Germany. https://doi.org/10.1108/JES-02-2023-0094
Wann, D. L., & Branscombe, N. R. (1990). Die-hard and fair-weather fans: Effects of identification on BIRGing and CORFing tendencies. Journal of Sport and Social Issues, 14, 103–117. https://doi.org/10.1177/019372359001400203
Wann, D. L., & Branscombe, N. R. (1993). Sports fans: Measuring degree of identification with their team. International Journal of Sport Psychology, 24, 1–17. https://doi.org/10.5555/19931857792
Westerbeek, H. M., & Shilbury, D. (2003). A conceptual model for sport services marketing research: Integrating quality, value and satisfaction. International Journal of Sports Marketing and Sponsorship, 5, 3–23. https://doi.org/10.1108/IJSMS-05-01-2003-B002
Yoshida, M., Gordon, B., Nakazawa, M., & Biscaia, R. (2014). Conceptualization and measurement of fan engagement: Empirical evidence from a Professional Sport Context. Journal of Sport Management, 28, 399–417. https://doi.org/10.1123/jsm.2013-0199
Zarifis, A., & Cheng, X. (2022). The business models of NFTs and fan tokens and how they build trust. Journal of Electronic Business & Digital Economics, 1, 138–151. https://doi.org/10.1108/JEBDE-07-2022-0021
Author information
Authors and Affiliations
Corresponding authors
Ethics declarations
Conflict of interest
The authors declare no competing interests.
Additional information
Responsible Editor: Gabriele D’Angelo
Publisher’s Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Supplementary Information
Below is the link to the electronic supplementary material.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Ante, L., Saggu, A., Schellinger, B. et al. Voting participation and engagement in blockchain-based fan tokens. Electron Markets 34, 26 (2024). https://doi.org/10.1007/s12525-024-00709-z
Received:
Accepted:
Published:
DOI: https://doi.org/10.1007/s12525-024-00709-z