Before jumping into the topic of fan tokens, the big news this week is the $100 million hack on Binance.
Late last week, unknown hackers gained access to over $570 million worth of crypto on Binance, the world's largest crypto exchange. The tokens were stolen from what is known as a blockchain 'bridge' which was used by the Binance Smart Chain. Blockchain bridges are a mechanism used to transfer cryptocurrencies between different applications and have become a common vector for hackers.
News of the hack has negatively impacted the price of the BNB token, Bitcoin and the cryptocurrency market as a whole. It has also impacted the surge in the price of Fan Tokens which was the intended article for this week.
The Contrarian Perspective
Every time there is news of another hack or some other FUD (fear, uncertainty and doubt) and the market drops, it's an opportunity for the contrarian investor.
Five months ago, the de-pegging of stablecoin USD caused the price of Terra Luna to plummet to almost zero and significantly impacted the cryptocurrency market as a whole.
If you had purchased Terra Luna during this time at its low ($0.00001675) in early May you would have already made +1,549.28%. The contrarian approach is typically to do the opposite of the market.
Almost a year ago Bitcoin was trading at its all-time high of $68,700 (November 10th, 2021) and today it now trading at nearly $19,000. For the contrarian investor, this is the time to be getting into crypto and likely one of the best opportunities we will see over the next four years.
We are nearing the bottom of the market (see my Bitcoin price prediction for the end of the year 2022) and there are opportunities to pick up highly undervalued cryptocurrencies at excellent prices. While we can't expect to see the type of price appreciation we had seen in the bull market of last year, during this current season of the market, it's an excellent time to be accumulating 'blue-chip' cryptos.
The cryptocurrency market as a whole is highly influenced by the price of Bitcoin and Bitcoin has historically gone through a 4-year cycle determined by what is known as the Bitcoin halving event. If you are interested in learning when the markets will likely return, the Bitcoin halving cycle event is a significant predictor.
Bitcoin Price Prediction for the End of the Year
Below is my article on the historical end-of-year price of Bitcoin and likely price movement for the next two months and into the new year:
Bitcoin Halving Cycle
A significant predictor for the timing of the next bull market and significant appreciation in the price of Bitcoin.
Fan Tokens are Trending
Before news of the Binance hack was made public, Fan tokens were trending. When this was originally written, the Spain National Football Team Fan Token (SNFT) was up over 1,000% in 60 days. However, with the recent news of the Binance hack, the market as a whole has consolidated along with this trend (likely temporary).
At least half a dozen other football-related sport fan tokens have been surging, largely as a result of the media attention and popularity of the upcoming FIFA World Cup 2022 in November.
What Are Fan Tokens?
Fan tokens are a form of cryptocurrency that give holders access to a variety of fan-related membership perks like voting on club decisions, rewards, merchandise designs, member-only benefits, and other unique fan-related experiences.
In recent years the adoption of fan tokens by organizations that have a large-sized fan base has increased considerably. Fan tokens are being used by sports clubs, musicians, and organizations with large a fan base to help offer fans a more exclusive experience. The largest fan tokens are currently football clubs and (F1) racing clubs.
Fan tokens aren’t just limited to famous football clubs like FC Barcelona, and Arsenal Fan Token. There are also F1 racing fan tokens, such as Alfa Romeo and Aston Martin. There is even a UFC fan token.
While there are currently just over one hundred different fan tokens, it’s likely in the near future we will see more clubs and organizations move towards adopting fan tokens as a new method to offer their fans exclusive benefits and rewards.
Best Fan Tokens of 2022
While Fan tokens have recently dropped with the recent downturn in the market, the upcoming World Cup next month will likely bring attention back to Fan tokens. For a list of the best Fan tokens of 2022, check out this list below:
Small Cap Gainers in the last 30 days
The market has continued to move sideways over the last month with the majority of all sectors of the market moving sideways or down. The greatest gains within the cryptocurrency market during this time have been within the nano, micro & small market capitalized projects.
Here are a few low-market-cap projects that have performed well in the last 30 days:
- CLO +177% - A smart-contract ecosystem with an emphasis on security (Micro-Cap)
- RBIS +267% - Global crypto ecosystem for trading digital assets (Micro-Cap)
- FPFT +118% - Peruvian Football Team Fan Token (Nano-Cap)
- IDO +156% - NFT Platform, Full Stack Solution (Nano-Cap)
- SASHIMI +217% - (7-days) Fork of Sushi, automated market maker (Nano-Cap)
Monthly Altcoin Pick:
Our Altcoin Pick for August is already up 48% (in this bear market).
During this bear market, we take a conservative approach towards our Altcoin Picks choosing higher market capitalization projects with long-term growth potential.
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Until the next report,