Opinion: James Newman, Chile’s Chief Corporate Affairs Officer
Blockchain perception is often driven primarily by stories of extreme volatility, bad actors and speculation, especially for people outside the industry.
Over the past few months, the industry has been dominated by stories about the rise and subsequent fall of memokines like Hawk, Fartcoin and Libra. Rewind to 2021 and lacking authentic use cases, massive hype around impossible tokens (NFTs) cannot lead to long-term success, and today’s average NFT projects have a lifespan of 2.5 times shorter than average crypto projects.
But for many, the appeal of these assets lies in their volatility, turning a few dollars into assets overnight. NFT and Mimecoin are undoubtedly part of the Web3 culture, but maintaining projects, attracting users and continuing to advance the industry is not volatility, but rather providing a real solution to real problems. Ultimately, it’s about utilities.
Utilities promote stability
Many blockchain projects fail because they are solutions that search for problems rather than solving existing projects. Assets that offer no utility at all are unlikely to be more than the volatile speculation of the Pan in the Pan moment. While digital assets continue to push the boundaries of innovation, human needs for utility and tangible values ​​remain constant. Furthermore, digital asset utilities promote stability by shifting their focus from short-term speculation to meaningful engagement.
When assessing the stability of a digital asset, its lifespan is much more significant than short-term price fluctuations. Volatility is inherent to crypto, but the exact measure of resilience is whether a project can withstand the entire market cycle. Fan tokens demonstrate this stability, but NFTs, despite the initial boom — struggle to maintain long-term value beyond speculative hype, primarily speculative hype.
Memecoin certainly creates hype, but their longevity is fleeting. 97% of MemeCoins, released in 2024, have already failed. Of course, there are exceptions, but the overwhelming majority cannot stand the test of time.
In contrast, sports clubs have been issuing fan tokens since 2018, weathering both the bull and bear market. Their resilience comes from the utility. Fan tokens continue to evolve and rethink fan engagement, bringing fans and clubs closer together.
Solve problems, create value, and establish lifespan
The connection between utility and stability is clear. Digital assets that solve real-world problems promote sustainable adoption. Instead of attracting speculators in the hopes of quick profits, utility-driven assets attract users with a real need or interest in the project.
The rise of Stablecoins emphasizes the importance of utilities.
Recently: Fan tokens provide stability – NFTs aren’t
Over the past six months, Stablecoin’s market capitalization has increased from $160 billion to $200 billion. According to Despread Research, in 2021 there were 27 Stablecoins. By July 2024, 182 people had grown 574% over three years. reason? Stablecoins offers user practicality, whether you are an owner of a small business looking to trade across borders, or a developer looking for liquidity in a distributed financial (DEFI) protocol.
Another indicator of asset utility is institutional adoption. Frankly, BlackRock invests in Bitcoin (BTC). BTC Exchange-Traded Funds (ETFS) – not Fartcoin, because institutions prioritize assets with a track record of creating tangible value for their customers beyond short-lived, hyped speculation.
For sports fans, emotional connections with the team run deep. Even if you’ve never stepped into a team’s stadium. Fan tokens fill this gap and use this emotional connection by providing a way for fans to participate in and provide a way to engage with their teams directly, provide rewards, and interact with them wherever they are in the world.
Whether you vote for team decisions, access exclusive deals, staking fan tokens for additional perks, or own a portion of your team’s digital identity, fan tokens provide utility throughout the lifecycle.
The future of digital assets
To bring it to a perfect yen, Nakamoto At was its original vision for Bitcoin. It was about solving the problem. It’s an unfair financial system. Sixteen years later, despite many applications of blockchain technology, this remains the reality of assets.
The future of digital assets is defined by their ability to solve real problems perceived by the club itself. This is why they don’t simply issue fan tokens. They actively grant IP rights to strengthen the trust and reliability of their assets. When some of the world’s most iconic sports brands employ blockchain technology like this, it’s a clear signal that the next era of fan engagement is not on the horizon. It’s already here. And we’re just starting out.
Beyond fan tokens, blockchain transforms the sports industry into multiple dimensions, with each use case increasingly interconnected. Take Tether’s recent investment in Juventus. The surge in Juventus fan token prices highlights how blockchain and crypto ties deeply intersect across investment, sponsorship and fan engagement. The 2024 Sports Crypto Sponsorship accelerates this convergence as clubs, leagues and brands explore new ways to leverage Web3 technology.
Opinion: James Newman, Chile’s Chief Corporate Affairs Officer.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
