By: André Jerusalem

Just like cryptocurrencies, the word 'token' has started to be used very frequently in recent times. In short, tokens are digital representations of an investment, such as money or assets in general.

There are currently several types of tokens with different functionalities, the main ones being:

• payment token, used for money transfers;
• Utility token, which offers some utility to the user of that token, such as discounts, promotions, personalized access, etc.;
• NTF (non-fungible token) which is the representation of something unique, such as an artistic work;
• Security Token, which is the representation of a real estate value, that is, linked to a title.

It is worth noting that every day, new types of tokens are being created with different purposes and purposes, including mixing functionalities between tokens.

With the creation of this new market, new financing opportunities arise with tokens, and in this context, football clubs saw a great opportunity to enter this new market. In general, clubs use utility tokens to offer their fans discounts, promotions, participation in polls/voting and access to all sorts of club activities. The token is also used to guarantee the receipt of credit rights related to the rights to a player, that is, if this player is sold, the token holder will have the right to receive an amount related to the sale to another team.

Major teams such as Corinthians, Palmeiras, Santos and Cruzeiro have entered this new market and have already transacted more than 80 million reais. The trend is that the number of participating teams will increase in the coming years.

It is worth noting that, like any other investment, there is a risk of loss, but also new opportunities for good returns.