Blockchain adoption is the newest trend in the digital industry and everyone wants a piece. The benefits and streamlining this technology brings to any industry is a boon to any business. Hence, companies now scramble to integrate them into their existing verticals. The sports industry is no exception to this rule. Non-fungible tokens are a revolutionary new digital asset that exists on the blockchain. NFTs helped drive growth across multiple sports.
Presently, there are more than eight thousand sports played across the world today. NFTs can beneficially change the ecosystem for fans, brands, clubs, leagues, players, and federations. NFTs first started showing up in the sports industry in recent years. Most major NFT opportunities here involve content like digital trading cards and artwork of players, 3D art, video content, branded content, avatars, and event ticketing. The inclusion of NFTs in the sports industry is an evolving space. Every day, creators find new and unique ways to create NFTs for different sports and increase fan engagement.
Other forms of NFTs include certificates, rewards, trophies, and autographs keep grabbing attention. These collectibles increase fan engagement between fans and their favorite teams or athletes. Additionally, brands have direct contact with their fans. Some companies consider NFTs as part of sponsorship deals. They can use NFTs to cash in on global fans looking to create equity within clubs.
The items NFTs represent on the blockchain bring them into circulation. Additionally, they retain their original value through tokenization. This process increases their security and increases fan loyalty towards a team or an athlete. NFTs bring items to the blockchain and increase their value through tokenization.
The impact of NFTs in sports
NFTs, bring childhood fantasies to real life through blockchain technology. Here, players can trade their virtual goods with collectors on a global market. Traders can conduct this work without the fear of compromised authenticity or third-party involvement. This security comes about through robust measures like encryption algorithms and several authentication features found on the blockchain.
Anybody that loves sports and enjoys collecting trading cards benefits immensely from purchasing and selling NFTs. One reason why fans get excited about purchasing NFTs is that they become sole owners of a rare collectible. They can then showcase it to their friends and earn bragging rights in the process. NFTs represent a new asset class and NFTs in sports increase investment opportunities. Fans here will drive investment up and that prompts traders and investors to get into the industry.
Presently, there is a lot of collaborative projects involving NFT platforms, brands, players, and digital creators. These projects result in original, innovative, and branded content fans will love. Players could provide behind-the-scenes content and engage with fans like never before.
The future of NFTs in sports
The future holds promise for immersive digital content. There are incredible opportunities for VR, AR, 3D videos, and the metaverse. The metaverse is a futuristic world inspired by multiplayer games. Here, users can collect and showcase their NFTs to other users. Many experts predict there will be a shift to the metaverse from platforms like Instagram and Facebook.
The sports NFT market is a new industry with immense potential and every day, the industry sees rapid growth. According to Reuters, the first half of 2021 saw NFT sales reach 2.5 billion USD.
Examples of NFTs in sports
NBA Top Shot and Sorare are the two most notable examples of NFTs in sports. The two platforms raised more than one billion USD in funding. NBA Top Shot is where users can purchase short videos of NBA’s top basketball players as NFTs. Sorare has a fantasy football platform where users earn tradeable NFT cards. The site partnered with nearly two hundred football clubs globally and generated two hundred million USD in revenue.
Platforms like Mintable, Raible, OpenSea, and Crypto.com sell digital art and videos of players from sports like tennis, football, basketball, Formula 1, and more. Sports brands and leagues develop and launch their NFT marketplace and engage with their fans.
Zed Run is an interesting NFT platform where users can buy horses as NFTs and make them compete in races. Other fantasy sports platforms like RealFever for football and Rario for cricket also joined the NFT hype train.
The rapid release of sports NFT platforms every month means that brands must ensure users buy content directly from them. The objective for any sports brand, league, or team is to partner with an NFT marketplace and start launching content.
Conclusion
NFTs make it possible for fans to become sole owners of unique sports collectibles and increase their engagement with an athlete, club or league. They can purchase this rare content without needing an intermediary or paying extra fees. Brands establish a lasting connection with their audience and generate revenue streams. Additionally, NFTs protect copyright as the content originality remains on the blockchain. No one can alter or edit anything on the blockchain without alerting the remaining users.
However, it is worth noting that this is a new space and everyone should learn about it. The present state of the market and its potential indicates that NFTs in sports is more than a passing trend. They are a movement and a new way to buy content. NFTs remove the intermediary requirement and fans benefit from the engagement.
Any entrepreneur, business, or organization looking to stay relevant in the coming years must learn about NFTs and blockchain technology. That way they can leverage the technology to the fullest and enjoy the benefits.
