Detailed Review Of The AS Roma Fan Token
The scope of tokens is expanding year after year and is no longer limited to the financial sector and collectibles. Fan tokens have become one of the recent trends of blockchain development, among them AS Roma Fan Token. What is this coin for, how it works, and how can fan tokens change the format of elite sport?
What is AS Roma Fan Token?
AS Roma Fan Token (ASR) is a utility token of the famous football club AS Roma that has been launched on the Socios platform for interaction between FC and fans. The token implies affiliation to the AS Roma fan community and gives the right to certain benefits, including the right to influence decision-making in FC.
The ASR’s main functional purpose is voting. The token grants its holder the right to vote on some decisions regarding the club’s activities. Under the contract with Socios, Roma undertakes to abide by the decisions that were upheld by the Socios.com holders through voting. In addition, AS Roma Fan Token allows:
- receiving discounts on branded products and tickets
- participating in the drawing of non-fungible tokens (NFTs), merchandise and other awards (such as a stadium tour)
- staking ASR to earn CHZ
- participating in token hunting to get new ASRs.
That is, AS Roma Fan Token actually transfers fans from passive donators, who can only purchase tickets for games, into active community members. It should be noted, however, that the club’s fans decide very minor issues so far such as what band the captain will wear for the next match and what music will play as the team enters the field.
Technically, the token operates on the Socios.com platform, which in turn is deployed on the Ethereum blockchain. Therefore, AS Roma Fan Token is an ERC-20 standard token and can be stored in all compatible wallets. It is traded mainly on the Socios.com parent platform and must be stored in the Socios wallet for the full implementation of the inherent functionality.
The total ASR supply is 10 million tokens, of which 1,220,010 coins were distributed to fans as part of the airdrop following the launch on Socios in early 2020. The rest of the AS Roma Fan Tokens are reserved for sale on public exchanges and distribution through staking, draws and promotions for AS Roma fans.
ASR and Socios
It is impossible to reveal the concept of AS Roma Fan Token without understanding the platform it is launched on. Socios is a platform for issuing and managing fan tokens, mostly of football clubs for the time being (although e-sports and wrestling teams are also represented).
Socios provides football clubs and teams in other sports with a turnkey service for issuing and managing Fan Tokens. For the AS Roma Fan Token ecosystem, it is a key platform that provides:
- ASR trading paired with a CHZ native token or fiat – an application offers direct exchange for a CHZ native coin; in addition, a bank card can be added to it for more convenient payment
- Full functionality for managing ASR, incl. staking, surveys and token hunting – the functionality of these functions is ensured by the Socios team
- Mobile interface for interaction – an iOS and Android compatible mobile application is available
- Mediation between FC and fan holders – execution of fan decisions, terms of issue and other functions are enshrined in the contract between AS Roma and Socios.
In general, ASR can exist nowhere else, except on this platform. Trading on open markets reduces this coin to a banal speculative asset, although AS Roma Fan Token is not positioned as a financial asset or investment object as a matter of principle.
Background & Team
The news that one of the largest Italian football clubs – AS Roma – is issuing its own fan token appeared in February 2020. By that time, AS Roma was not the first team to use tokens to expand the fan community, but became one of the largest FCs to ever operate on Socios.
We have already explained the reason for launching the coin above, and AS Roma Fan Token cannot technically have a development team since all technical tasks for the issue and support of ASR are undertaken by the parent platform. That is why it is worthwhile to devote a few paragraphs to the platform’s background.
Socios.com is backed by the Maltese blockchain startup Chiliz, founded in 2018 and currently represented in Europe, Asia and South America. The company employs several dozen developers, including:
- Alexandre Dreyfus, CEO of Chiliz, who co-founded and launched Mediartis, Webcity, WINAMAX and other startups.
- Thibaut Pelletie, CTO of Chiliz, who has worked on Locafilm, Presta Concept, and several game projects.
In 2018, Chiliz announced the development of Socios.com and raised $66 million for the launch of the platform. Interestingly, they did it without ICO – through early private sales. Socios currently works with several dozen clubs and teams (mainly football clubs):
This whole idea is nothing less than reshaping the format of interaction between fans and players from one-sided, in which the fans can only support the team financially and watch its matches at a stadium, to double-sided, in which fans can influence the club’s decision-making. Theoretically, all participants should benefit from this system:
- Fans will get the opportunity to unite, influence the club’s life and hunt for goodies like merchandise and free tickets
- Clubs can attract more fans through tokenization and expansion of their rights, as well as adequately assess the size of their target audience
- Socios will earn on the increase in the rate of its CHZ token, which is required to purchase all fan tokens launched on the platform.
So far it seems Socios.com is doing great, attracting new partner clubs every year, including large ones like AS Roma, AC Milan and FC Atlético. However, analysts are already predicting a split in the fan community of tokenized clubs – their adherents will be divided into privileged token holders with the right to vote and other fans who can only purchase tickets, scarves and shout from the stands.
AS Roma Fan Token is just another token on Socios with overall standard functionality for coins presented on the platform. Although the question of what decisions fans can make and what benefits they will get as ASR holders is established by AS Roma, specifically in the contract between the club and the platform.
2021 Forecast for ASR
ASR first entered the market in July 2020 and was traded at $3.7. As of this writing, the token’s market price is $6.9, i.e. its rate almost doubled over the past six months. The chart also shows an abrupt jump in the rate in January 2021 amid the general market growth, although AS Roma Fan Token generally weakly correlates with the common trend:
ASR price dynamics in 2021 depends on two key factors:
- General distribution of fan tokens – there is now a sustainable trend for the issue of fan tokens by both small and renowned clubs. Fan tokens fit into the concept of universal tokenization, so it is very likely that they will gain momentum in 2021.
- AS Roma’s activities – the higher the club’s popularity and the more united the fan community, the more demanded fan tokens become, which means the higher rate.
An increase in the functional value of ASR may also take its toll, but so far the functionality development roadmap is almost fully implemented and it is only various promotional offers from the club that can raise the price in this regard – more merchandise, draws, discounts and other benefits.
We must also not forget about a strong negative factor – quarantine restrictions resulting in games being played in empty or half-empty stadiums. The inability to visit the game automatically negates some of the benefits ASR provides and, in general, compromises the connection between the fans and the club, resulting in token demand contraction.
In general, AS Roma Fan Token should only be considered as a speculative asset. There are several factors against long-term investment:
- Lack of the same goal for the token
- So far, underdeveloped tokenization in the sports sector
- Strong dependence on the club
- High centralization.
Plus, ASR has a market capitalization of just over $8.5 million, which means that the coin remains vulnerable to pumps and the influence of major holders.
Binaryx trader’s opinion
Now there is an explosive growth of “fan tokens”. As we found out, this is not a separate blockchain, but a football team token. So far, the issued tokens are related to football, but it may also be other sports or even e-sports in the near future. It is entirely possible that Dota or similar games will soon issue their token so that players around the world can vote for the development of a particular character or a certain game scenario. We are now witnessing profound interest of the market in this tokenization industry.
Also, the recently launched Paris Saint-Germain or Juventus fan tokens managed to grow by 100%. Indeed, they do not have a large and sweeping application so far, but you can make money on them. Even the information noise can be used for small speculations, which is now very different among traders or investors. These tokens have a weekly vibrational amplitude reaching 50%, which means anyone who is even a little familiar with trading can get their profit share on these jumps.
ASR has corrected very well today and can be purchased for the purpose of selling close to the previous extreme. The today’s market is a growing trend, which means that new, little-capitalized tokens will grow faster than the rest of the market. Use extreme care by purchasing this token for a 5% deposit, you do not need to rush and buy up all the fan tokens, because the most banal news that the platform they were originally issued on went offline can immediately bring down this so far narrow market segment. But it is definitely worth keeping an eye on this type of tokens.
AS Roma Fan Token is a coin that should rally AS Roma fans and forge a two-way communication between fans and players. The token was launched on the Ethereum-based Socios.com platform, which provides a full service for startup and maintenance of functionality of fan tokens. ASR grants its holders the right to:
- vote when making decisions concerning the club’s activities
- freeze a coin to earn ASR and CHZ
- participate in the drawing of tickets, merchandise and valuable prizes.
To implement all these ASR functions, you will need to download the Socios.com mobile application and store coins in the integrated wallet. In addition, you can buy them on the open market.
Economically, AS Roma Fan Token can hardly be called a promising investment. Although the token demonstrates a rise in value with a weak correlation with the general market trend, it is highly centralized, and its financial and functional value is highly dependent on the decisions of the AS Roma management.
Generally, the token is wedging into a promising, yet underdeveloped sector for the use of blockchain and arouses greater interest in fans and analysts than in traders and investors.