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Fan tokens: Sports and speculation on the blockchain

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  • Scharnowski, Matthias
  • Scharnowski, Stefan
  • Zimmermann, Lukas

Abstract

This paper provides an economic analysis of fan tokens, which are collectible utility tokens issued by sports clubs. We document that fan token prices are highly volatile and substantially riskier than those of established cryptocurrencies. For a subset of publicly listed clubs, we find that stock and token returns are uncorrelated. Instead, fan tokens tend to closely co-move with each other and the main cryptocurrencies used for buying them. Returns are lower on days when the club unexpectedly loses a game, but higher on days of increased investor attention towards fan tokens. While fan tokens may provide some non-monetary utility, as financial assets they are highly speculative and, in many aspects, resemble cryptocurrencies.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:intfin:v:89:y:2023:i:c:s1042443123001488
    DOI: 10.1016/j.intfin.2023.101880
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    More about this item

    Keywords

    Fan tokens; Cryptocurrency; Soccer; Sports; Blockchain;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • Z23 - Other Special Topics - - Sports Economics - - - Finance

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