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Terms","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/crypto-101-glossary.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}],"nextSection":{"id":336,"original_id":null,"author_id":40,"translator_id":null,"title":"What is Fan Token?","slug":"what-is-fan-token","section":"F","keyword":"Fan Token","status":"published","definition":"is a digital asset issued by a certain sports team that allows its users to participate in governing activities as well as get special discounts and prizes.","content":"<p><strong>A fan token provides voting rights on kit designs and club decisions, as well as allows holders to be a part of a unique experience provided by the sports team</strong>.</p>\n<p>This means that fan tokens can be utilized by sports teams to give fans the opportunity to get VIP advantages like meet and greets and premium box sets during a game. The number of tokens determines the possibilities that the fan might get or the ability to vote for their favorite team and get different prizes.</p>\n<p>Shareholdings of fan tokens enable fans to partake in fan-led decisions while also functioning as a ticket into a protected, exclusive inner circle of fans who hold common interests and viewpoints via a mobile voting platform.</p>\n<p>Furthermore, the more tokens a fan possesses and the more votes they submit, the greater their clout rating becomes, propelling them through the reward levels until they have admission to the most special VIP privileges accessible.</p>\n<p>Socios is a Chiliz mobile application that could be viewed as the guide for developing fan tokens that enable Socios users to vote on concepts about surrounding sports teams. This could be team matches, uniform designs, and so on. Also, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-smart-contract/">smart contracts</strong></a> that operate on the Chiliz blockchain enable Socios users to vote on the club&rsquo;s ideas.</p>\n<p>To obtain fan tokens, users are obligated to first purchase <strong>Chiliz (CHZ),</strong> which can be traded on multiple <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-exchange/">exchange platforms.</p>\n<p>Even though the majority of fan tokens are accessible on Socios.com, others like Paris Saint-German Fan Token (PSG) can also be seen on popular centralized exchanges (CEX). However, there are some that can&rsquo;t be listed because they are not verified or tangible enough.</p>\n<p>Besides, in the process of making an investment, it is mandatory to always keep in mind the worth of the product and possible solutions. Also, fan tokens&rsquo; utility is restricted to the specific benefits that sports teams provide.</p>\n<p>Moreover, &nbsp;like many other cryptocurrencies, fan token values can either increase or decrease as a result of <strong>supply and demand</strong>. A few football enthusiasts that are familiar with these tokens have indicated that prices are influenced by the team&rsquo;s performance or movements.</p>\n<p>This may be shown in new player signings, management changes, and league results.</p>\n<p>For instance, the PSG token had a 300%+ price increase a couple of days after one of the best football players in the world, Lionel Messi, transferred from the Spanish team, Barcelona, to the French club, PSG. The PSG token's price plummeted once the transfer was completed, but it spiked again a few days after.</p>","level":"medium","meta_title":"What is Fan Token? 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Once the <strong>asset experiencing the falling knife hits bottom</strong>, the price quickly recovers, leading to a whipsaw.</p>\n<p>There can be multiple reasons as to why the price of an asset plummets, leading to a falling knife. If the <strong>business issuing the asset receives negative press</strong>, the market may be discouraged from investing, leading to a falling knife pattern. However, the price may swiftly recover if the issuer follows up with a good statement on the news.</p>\n<p>Since the <strong>reputation</strong> of the company plays a big role in price fluctuations, it may be easier to determine an upcoming falling knife trend not by relying solely on market analysis, but also by possessing some insider info.</p>\n<p>It can take <strong>meticulous calculations</strong> to determine when a falling knife might produce the biggest profits for investors. If the investors do not follow the stock trends and the price experiences a whipsaw, they may lose money. The <strong>prices may then go up above the initial position</strong> of the investors.</p>\n<p>Intercepting a falling knife with minimal losses is extremely difficult. It is recommended to avoid freefall methods for investors who do not have diverse portfolios or whose <strong>investments are relatively small</strong>. More experienced investors may employ freefall strategies to play a high-risk, high-reward game.</p>\n<p>A falling knife typically indicates a bad time for investors, particularly <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-bull/">bulls, to enter the market. If investors time the downtrend and rebound correctly, they may be able to secure a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-short/">short position</strong></a> and <strong>escape before the lowest point of the falling knife</strong>.</p>\n<p>New investors typically aim for falling knives as it allows them to acquire new assets at low prices. Long-term strategists are more likely to <strong>avoid falling knives</strong> as they believe that the whipsaw event will occur soon.</p>\n<p>Investors with larger portfolios may be able to successfully utilize investments in falling knives. However, such strategies may still be hazardous to their earnings if they opt to <strong>invest a larger percentage into the asset</strong>.</p>\n<p>Mistakes while investing in falling knife prices are to be expected. Investors must conduct a thorough purchasing analysis. Failure to do so may lead to bigger mistakes, regardless of the timing.</p>\n<p>It is important for the investors to <strong>limit their exposure to the market</strong> and maintain emotional balance when investing. Failure to research and time the investment may cause severe damage to the portfolio.</p>","level":"medium","meta_title":"What is Falling Knife? Definition & Meaning | Crypto Wiki","meta_description":"Falling Knife meaning: Falling Knife - a market event when the price of an asset suddenly plummets.","meta_keywords":null,"language":"en","created_at":"2022-03-14T14:42:46.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-falling-knife"},"currentChapter":"F","currentSection":"what-is-fatf-travel-rule","chapterTitle":"F","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-fatf-travel-rule","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Crypto Terms: Letter F

What is FATF Travel Rule?

FATF Travel Rule MEANING:
FATF Travel Rule - regulatory guidance regarding sharing information for large-scale crypto transactions.
Easy
1 minute

Let's find out FATF Travel Rule meaning, definition in crypto, what is FATF Travel Rule, and all other detailed facts.

The Financial Action Task Force (FATF) travel rule is a 2019 update to Recommendation 16 of the regulatory guidance known as the FATF Standards. This particular update touches on battling crypto money laundering (AML) and terrorism funding (CFT).

Based on the FATF, countries must ensure that the domestically operating virtual asset service providers (VASPs) implement measures making it easier to share personal information with the transaction counterparty VASPs while transmitting a transaction that exceeds $1000. VASPs, in this case, refer to cryptocurrency exchanges and custodial platforms.

Such regulatory measures allow governments to collect data from users conducting transactions valued at more than $1000. The information includes the name, account number, and the number of accounts participating in the transactions. Data such as proof of address, identity, or date and place of birth may also be required.

Financial institutions, including VASPs, must share this information with each other, particularly regarding the transactions covered by the regulatory threshold. Financial institutions have to take responsibility for ensuring data accuracy and upkeep. According to the regulation, any financial institution or cryptocurrency business may fall under the VASP category.