Hassan Maishera
Binance, the world’s largest cryptocurrency exchange by volume, announced a few hours ago that it would launch perpetual contracts for its fan token index. The launch of the football fan token futures index will occur before the FIFA World Cup tournament kicks off in Qatar in November.
According to Binance, the Football Fan Token Index perpetual contracts will be available, with up to 25 times leverage, on the exchange’s derivatives market from September 1. Binance said;
“Binance Futures will launch USDⓈ-M Binance Football Fan Token Index perpetual contracts (“FOOTBALLUSDT Perpetual Contracts”) with up to 25x leverage on 2022-09-01 at 03:00 (UTC). Binance Football Fan Token Index is a new cryptocurrency price index that tracks the top Football Club Fan Tokens listed on Binance Spot by market capitalization.”
The cryptocurrency exchange said its new crypto price index is designed to track the market performance of football club fan tokens listed on its spot market in USDT. Binance already offers four fan tokens, including for football clubs Lazio, Santos FC, FC Porto, plus the Alpine Formula 1 racing team.
Following Binance’s announcement a few hours ago, these fan tokens have experienced a surge in prices. Binance explained that Binance Football Fan Token Index is a cryptocurrency price index that tracks the market performance of certain football club Fan Tokens listed on the Binance Spot market. The Index is calculated by a formula that uses the weighted averages of the real-time prices of the relevant Fan Tokens constituting the Index, as published on the Binance Spot market, denominated in USDT.
In its blog post, the crypto exchange added that the Multi-Asset Mode allows users to trade FOOTBALLUSDT Perpetual Contracts across multiple margin assets, subject to the applicable haircuts. For example, when the Multi-Asset Mode is activated, users can use BUSD as margin when trading FOOTBALLUSDT Perpetual Contracts.
Fan tokens became popular as a result of the Coronavirus pandemic. At the time, most fans couldn’t attend matches, with most matches played in empty stadiums. This affected the revenue generated by football clubs. Data indicated that sales at Europe’s top 20 revenue-generating clubs dropped 12% to 8.2 billion euros ($9.9 billion) in 2021. Other ways to keep up with the sport during the time were football newsletters and social media.
The clubs adopted fan tokens as a way to augment the lost revenue and renew engagement with fans. The fan tokens allow the club supporters to enjoy certain benefits, including VIP rewards, promotions, games, exclusive merchandise, and access to polls and forums.
With this latest development and more positive Binance reviews, the cryptocurrency exchange further cements its place as the world’s leading digital asset trading platform.
