The Alpine fan token price has retreated sharply in the past two days. The token is trading at $4.62, which is about 67% below its highest level this week. Its market capitalization has retreated to about $52 million, making it the biggest fan token in the world.
What is the Alpine fan token?
A fan token is a financial asset built on the blockchain that helps teams deepen their relationship with their fans. Holders of the toke will often receive discounts when they buy a team’s merchandise and even tickets.
At the same time, fan token holders will often be given a chance to participate in some important votes. For example, a team can want to know who the fans think is the player of the year.
In the past few months, many teams have launched their fan tokens mostly using the Chiliz platform. They include popular clubs like Barcelona, PSG, Lazio, and Manchester City.
The newest team to launch its fan token is BWT Alpine, a Formula 1 team. By so doing, it becomes the first team in its sport to launch its token. To achieve this, it partnered with Binance, the leading company in the cryptocurrency industry.
The partnership between Alpine and Binance goes beyond the fan token. For one, Binance will become a sponsor for the team while Alpine will launch and sell non-fungible tokens (NFT) in the Binance platform.
Alpine is a team that is mostly owned by Renault and its two drivers are Esteban Ocon and Fernando Alonso. In the 2021 season, it was position five.
Is the Alpine fan token a buy or sell?
Fan tokens were once seen as the future of the blockchain industry. However, the reality has been much opposite since the popularity of a club has not boosted the price of its token.
Today, according to Fan Market Cap, the industry has a total market capitalization of about $363 million, which is a small amount considering how big the blockchain industry is.
Therefore, to a large extent, judging by history, it would not be ideal to invest in the Alpine fan token at this point. Besides, other popular fan tokens like Manchester United and Barcelona have all crashed by more than 70% from their launch dates.