Non-fungible tokens, or NFTs, are the most current cryptocurrency frenzy to sweep the world. NFTs convert digital works of art and other valuables into one-of-a-kind, verifiable assets that are easy to trade on the blockchain in their most basic form. The payoff has been significant for many artists, musicians, influencers, and others, with investors paying top dollar for NFT copies of digital photographs. This may seem like a gamble to many people, so much so they would prefer to invest their money with a recommended sportsbook site rather than purchase NFT’s.
NFTs, on the other hand, aren’t entirely new. One of the first NFTs was CryptoKitties, a digital trading game based on the Ethereum cryptocurrency platform that allowed users to buy and sell virtual cats that were unique and stored on the blockchain.
So, why is the NFT craze gaining traction now? People who love supporting the efforts of independent creators by purchasing their works account for some of the interest. Others are attracted by the prospect of claiming ownership of a digital work that anyone can replicate. Newly minted crypto millionaires and billionaires aiming to diversify their bitcoin holdings appear to have fueled recent headline price records for NFTs.
NFTs are being welcomed as the digital answer to collectibles, similar to how Bitcoin was heralded as the digital answer to currency. Still, many skeptics believe they’re a bubble ready to explode.
So, what does all this have to do with sports, I hear you ask? Well, NFT’s are having a massive influence on the sports industry, and here’s how.
Fan Engagement – NFTs have a particular application in the sports industry in the form of fan tokens. With these fungible utility tokens, fans can influence sports teams’ decisions, VIP perks, and promotional activities. Fan tokens, unlike NFTs, can be traded and exchanged. In terms of trading opportunities, these tokens are analogous to cryptocurrencies. Owners of fan tokens wield a lot of power because they can influence things like uniform selection, valuable players, etc.
Licensing – Dapper Labs, a key blockchain business, has partnered with the NBA, the world’s premier basketball league, to create NBA Top Shot, a well-known sport-related NFT application. This creates a marketplace for basketball enthusiasts to buy and sell highlight video clips from top-tier games. These reels are paired with digital things that are NBA-licensed. These licenses indicate that the owner does not have the right to reproduce or profit from the clips but does have the right to use, copy, and display them. The portal has met the need of fans who want to buy and acquire expensive items from athletes. So far, sales of NBA Top Shot have totaled over $500 million.
Collectables – Assume you’re a league representative, a team owner, or simply a business enthusiast. In that situation, you can use NFT to create and offer your own trading platform for creating and selling unique card collections. You may even make a video game where the players, clubs, competitions, leagues, and skins are all based on NFTs. The holders utilize it to play with one other or even form teams and compete in virtual tournaments.
Financing – There are a variety of application cases in the financial plays area. To begin, teams or athletes can gather funding using token-based devices. Security token offerings, in particular those that are fully compliant, might be a terrific addition to the fundraising mix. You can use them to make your fans become ‘fanvestors’ or allow a global investor pool to invest. Spencer Dinwiddie of the National Basketball Association (NBA) is the most well-known example, issuing a tokenized bond to his fans.
Ticketing – One of the compelling use cases of NFT is the sport NFT uses in Virtual Real Estate. A person can own the exclusive virtual real estate associated with the football team. The privilege to view unique stadium events can be obtained by purchasing a seat in the virtual stadium. This platform will serve as a possible component for sports clubs and athletes to capitalize on and create value.
The ticket’s NFT application will be crucial. Ticket scalping and fraud have long been contentious matters among event organizers and attendees. However, with the introduction of NFT, fans may be confident that they will receive a valid ticket when purchasing on the blockchain with complete data verification. Furthermore, blockchain networks can aid sports organizers in tracing all selling prices and scalp history from opportunists. As a result, fans will have access to a precise and convenient method of obtaining sports tickets, as well as several exclusive rights.
Brands and teams are connecting with their followers in new ways thanks to the digital era. As a result, these sports businesses are reaching new audiences and generating new revenue streams by utilizing NFTs and fan tokens.