NFT sports are becoming increasingly well-liked worldwide due to the growth of the cryptocurrency business and the widespread interest in sports.
Barcelona and PSG are already producing fan tokens, Inter is a blockchain application, Gretzky, Messi, and Nurmagomedov are NFT collections, and Lazio’s title sponsor is a cryptocurrency exchange. According to buidlbee.com, the PSG football club sold NFT tickets for Japan matches for $218,000. How did this happen, and why has athletics already incorporated all of these confusing words? Come on, let’s solve it together.
The Lakers and Clippers play at the Staples Center, which the cryptocurrency exchange Crypto.com paid $700 million to rename “Crypto.com Arena” for 20 years in November (35 million per year).
Why Do Crypto Exchanges Displace Traditional Sponsors in Sports?
There seem to be several reasons:
- Crypto exchanges are looking for new customers, and there is more interest in crypto in sports;
- Sporting events are a source of affection, while cryptocurrency exchanges are unreliable.
Collaboration among cryptocurrency exchanges, blockchain systems, and publishers is particularly active in Italy. For example, Serie A signed an agreement with Crypto.com and Lazio with Binance, and there are many more similar cases.
So what about NFT?
Blockchain technology is used by tokens, but not in a way that makes them equivalent to cryptocurrencies. Each NFT ticket is distinct; they cannot be downloaded, copied, or exchanged for the same one (like traditional money or cryptocurrencies).
You can claim any digital asset you’ve bought using NFT and a transaction registered on the blockchain. NFT is typically purchased on technological platforms utilizing digital currency. You don’t need them, but the market views cryptocurrency transactions as straightforward, dependable, and decentralized.
Therefore, tokens are usually used in two roles:
NFT is used as a certificate for some tangible items. For real estate, as an illustration.
Digital NFTs include gifs, images, and works of art. In this case, NFT is also a certificate, but its object only exists online.
The predicted value of the global NFT market in 2021 was $22 billion. Most of it comprises works of art and collectibles, including paintings, animated GIFs, or drawings. However, these objects have more benefits when represented as digital assets. NFT things can be traded as well as collected for this reason.
Sports NFTs allow sports fans to acquire digital trading cards, virtual memorabilia, and more. This market area for non-fungible tokens (NFTs) is expanding. Discover what sports NFTs are, where to obtain them, and whether they are worthwhile by reading about them.
An individual needs a digital wallet that works with the Ethereum platform to buy NFTs. All payments and fees for purchasing an NFT will come from this wallet.
The surge in the value of cryptocurrencies, the gamification of the market, the rise of decentralized platforms with a distinct community (like OpenSea, DMarket, and Raible), and the involvement of opinion leaders like Elon Musk and Jack Dorsey are all factors contributing to NFT’s rapid expansion.
The most common NFT tokens for athletes are cards featuring significant moments from their careers (in the form of a video, photo, gif, cartoon, or drawing), produced in small numbers. Cards that don’t sell on the primary market right away are burnt or left online.
Piracy in NFT
Because of their distinctiveness, NFTs appear to be the next step in the evolution of digital art because they enable you to produce a little more than just art or gifs. However, they also foster piracy.
However, in significant sports NFT initiatives, these issues are essentially nonexistent. The most prominent market participants, such as NBA Top Shot or Sorare, typically employ formal licenses from leagues. At the same time, athletes who issue personal tokens do not require any further rights (unless otherwise specified in the contract with the club).
Revolution of Sport NFT
The NBA Top Shot catalyzed the NFT revolution in sports. The blockchain’s creators, who made a billion dollars from simple videos, are in charge of it.
NBA Top Shot debuted a little over a year ago and quickly rose to prominence in the sports NFT market. It will generate more than $800 million in revenue in 2021 or 4/5 of all NFT in sports. NBA Top Shot attracted investments totaling $ 350 million in March, while at the same time, the company’s value was assessed at $ 1.5 billion.
The project’s fundamentals are comparable to conventional Panini cards and are extremely simple, except that Top Shot packs contain video game events rather than stickers or player photos.
The most expensive bundle won’t make you instantly wealthy. It would be best if you reached a high level of the collector to be able to purchase a bundle for $ 999. To accomplish this, you must first buy packs for $ 9, then for $ 19, after which you must wait until the next drop of pricey products to purchase them.
You can show the received moments, take part in challenges, and win new packs with them. The platform generates additional income through a commission from the subsequent sale of minutes between users on the internal trading platform. Additionally, there is Sorare, the primary NFT startup in football. Football players Andre Schurrle, Antoine Griezmann, Gerard Pique, and others have invested in Sorare for a total of 680 million dollars. Griezmann even purchased Arsen Zakharyan’s playing card. Although So rare has swiftly gained a high level of confidence because of well-known investors, a low entrance barrier, and club licenses from Spain, France, England, and Russia, this platform is used to generate cryptocurrency rather than collect it.
Currently, NFT sports are most fascinating to die-hard sports enthusiasts, but we’ll keep an eye on how things play out.