Assessing the Impact and Future Prospects of Fan Tokens in the Digital Sports Economy
A Correlational Analysis
Abstract
The present study aimed to explore the interactions between financial and market variables of 20 sports fan tokens, to provide an understanding of the market dynamics that influence the valuation and perception of value of digital assets. Using data collected from the CoinGecko website, this work adopted a quantitative methodology to analyze the market dynamics of these tokens, incorporating variables such as price (P), market capitalization (MC), and circulating supply (CS). The results of the correlations of MC with P (rho=0.54) and P30 (rho=0.46) suggest that increases in market capitalization are associated with increases in current and future prices. The fully diluted valuation (FDV) showed correlations with P30 (rho=0.701) and with MC (rho= 0.802), indicating that future expectations are aligned with market valuations. The M/FDV had a negative correlation with P30 (rho=-0.742) and FDV (rho=-0.771), suggesting that as M/FDV decreases, there is a tendency for an increase in future prices, which may indicate a perception of undervaluation of the asset. The correlation of DIFF with P30 (rho=0.586) and M/FDV (rho=-0.901) may also bring the perception of undervaluation and an expectation of positive price correction. Furthermore, the analysis highlighted the role of fan tokens as new forms of revenue for clubs, while introducing financial and regulatory complexities. The study concluded that, despite the challenges, fan tokens represent an evolution in the concept of fandom, with the potential to transform fan engagement into a more active and valued experience.
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