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Blockchain, sport and fan tokens

Author

Listed:
  • David Vidal-Tomás

Abstract

Purpose - This paper provides a thorough examination of Socios.com, a blockchain platform that integrates token sales with the fan experience in the sports industry. The study focuses on three key aspects: the performance, bubble phenomenon and dynamics of fan tokens. The author aims to address important questions that may concern potential supporters and investors. Might sports fans incur financial losses due to their team loyalty? Is the fan token market just a passing trend? Are fan tokens driven by the behaviour of the cryptocurrency market? Design/methodology/approach - This analysis aims to involve several methodologies. The author evaluates the short- and long-term performance of fan tokens by computing first-day and buy-and-hold (abnormal) returns. The author also employs the Phillips, Shi, and Yu's (PSY) real-time bubble detection method to investigate the presence of bubble phenomenon in the fan token market segment. Finally, the author examines the potential dependences between fan tokens, Chiliz and the cryptocurrency market (represented by the CCi30 index) using both Pearson/Kendall correlations and the wavelet coherence approach. Findings - The study presents three notable contributions to the existing literature. First, the author demonstrates that investing in fan tokens to support one's favourite sports teams can lead to financial losses, whereas traders can potentially outperform the market by investing in Chiliz. Second, the author states that fan tokens were a short-lived trend, as evidenced by their decline in value after the bubble burst in 2021. Third, the findings indicate that the fan token market was influenced by the cryptocurrency market and Chiliz during periods of market downturns. Originality/value - To the best of author’s knowledge, this is the first paper to conduct a comprehensive analysis of the performance, bubble phenomenon and dynamics of the token market fan segment, along with the exclusive on-platform currency, Chiliz.

Suggested Citation

  • David Vidal-Tomás, 2023. "Blockchain, sport and fan tokens," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 51(1), pages 24-38, April.
    • Handle: RePEc:eme:jespps:jes-02-2023-0094
    DOI: 10.1108/JES-02-2023-0094
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    Cited by:

    1. Agnese, Pablo & Xiao, Yuqing, 2025. "Tokenization in soccer leagues. Is fan engagement for real?," Research in International Business and Finance, Elsevier, vol. 76(C).
    2. Scharnowski, Matthias & Scharnowski, Stefan & Zimmermann, Lukas, 2023. "Fan tokens: Sports and speculation on the blockchain," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 89(C).
    3. Cavallaro, Matteo & Mathieu, Alban, 2024. "Beyond the veil: Mapping cryptocurrencies' ecosystem," International Review of Financial Analysis, Elsevier, vol. 94(C).
    4. Bai, Zefeng & Wang, Pengcheng & Zhang, Hengwei, 2024. "When uncertainties matter: The causal effect of cryptocurrency investment on retirement hardship withdrawals," Finance Research Letters, Elsevier, vol. 67(PB).
    5. Saggu, Aman & Ante, Lennart & Demir, Ender, 2024. "Anticipatory gains and event-driven losses in blockchain-based fan tokens: Evidence from the FIFA World Cup," Research in International Business and Finance, Elsevier, vol. 70(PA).
    6. Assaf, Ata & Demir, Ender & Ersan, Oguz, 2024. "Detecting and date-stamping bubbles in fan tokens," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 98-113.
    7. Lennart Ante & Benjamin Schellinger & Ender Demir, 2024. "The impact of football games and sporting performance on intra-day fan token returns," Journal of Business Economics, Springer, vol. 94(5), pages 813-850, July.
    8. Lennart Ante & Aman Saggu & Benjamin Schellinger & Friedrich-Philipp Wazinski, 2024. "Voting participation and engagement in blockchain-based fan tokens," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-23, December.
    9. Foglia, Matteo & Maci, Giampiero & Pacelli, Vincenzo, 2024. "FinTech and fan tokens: Understanding the risks spillover of digital asset investment," Research in International Business and Finance, Elsevier, vol. 68(C).
    10. Akyildirim, Erdinc & Corbet, Shaen & Coskun, Ali & Ercan, Metin, 2025. "Connectedness of cryptocurrency-related stocks and the cryptocurrency market: Evidence from the United States," The North American Journal of Economics and Finance, Elsevier, vol. 76(C).

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    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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