Dozens of football clubs have already issued their digital tokens and NFT cards. Crypto platforms are partnering with leading sports leagues. 2021 was the year of crypto in sport, a trend that has continued into 2022. In March, it was revealed that Crypto.com had become the official sponsor of the World Cup in Qatar.
According to a Morning Post poll, around 39% of Americans are familiar with cryptocurrencies. Meanwhile, among those who follow sports, the percentage aware of virtual currencies reached 47%. Bettors – people who bet on sports – are most familiar with cryptocurrencies. Some 72% of them are aware of digital assets. Not surprisingly, most bookmakers offer the opportunity to bet in cryptocurrency alongside traditional currencies. Learn more about the betting business and get to know the betting companies at https://bookmaker-ratings.com/.
Messi, the chief ambassador of crypto in football
A few days after the news of the FIFA and Crypto.com contract, it was revealed that Argentina star Lionel Messi would be promoting another crypto exchange, Socios.com, at the World Cup. The sportsman has become an ambassador for the brand and has agreed to promote it in preparation for the World Cup in Qatar.
Last summer, the Argentine signed a contract with French club PSG and agreed to receive part of the multi-million dollar contract in digital assets – fan tokens. And in late August 2021, the legendary striker unveiled his first officially licensed NFT collection on the blockchain platform Ethernity as part of The Messiverse project. The most expensive token from that collection was sold for $1.1 million.
What is an NFT token?
The blockchain stores many different tokens, digital virtual units – a kind of analog currency, in the value of which goods, various services, etc., are invested. Generally, all tokens are equal and interchangeable. This means that if we replace one token with another, nothing changes.
Non-fungible token (NFT) technology works differently: each non-interchangeable token is unique, so it cannot be forged or swapped with another. The object of NFT-tokenization can be any digital file: photo, art, song, etc. NFT-token will be as unique as the object itself.
Why cryptocurrencies have crashed again
Why are NFTs so popular in sports?
NFTs are first and foremost about collectibles. The tradition of collecting originated in sports long before the advent of blockchain technology. Just as players buy Panini stickers or Shoot-Out cards, now they buy digital sports collectibles. The only difference is the price.
Basketball has its own NFT trend. A little over a year ago, NBA launched its Top Shot project. The mechanics of the project are very simple and similar to traditional Panini cards; only instead of stickers and pictures of players in Top Shot, there are folders with videos of game moments.
The simplest $9 pack contains three dunks, three-pointers, block shots, and assists. Each pack (and the moments in it) comes in limited editions. The cheapest is 150-200 thousand packs, the more expensive $19 packs are 90 thousand, and the most expensive $800-999 packs are limited to 1000.
You can showcase your purchased moments, take part in challenges or earn new packs. The platform earns further revenue from the secondary sale of moments between players on the internal trading floor. The most expensive cards on Top Shots are LeBron James cards. They are valued at $200,000 each.
Which sports organizations are partnering with cryptocurrency exchanges
One of the reasons why cryptocurrencies are so active in reaching out to sports organizations: cryptocurrencies lack public trust, and sport is a source of affection. The easiest way for a team and a blockchain platform to collaborate is to issue collector cards and fan tokens.
Blockchain platforms and cryptocurrency exchanges are particularly active in Italy. Serie A has signed with Crypto.com, Juventus with Bitget, Lazio with Binance, Inter and Roma with Digitabits, AC Milan with Bitmex, Atalanta with Plus 500, etc.
However, sponsorships of cryptocurrency exchanges and publishers are common in Italy. Legia, Atletico, and Young Boys have signed with Plus500, Brentford with Coinjar, Watford with Dogecoin, Inter Miami with XBTO, and Cadiz and Spartak with Floki Inu.
Both individual clubs and entire organizations agree to partnerships with the crypto industry. The biggest case is FIFA. Crypto.com is actively promoting its brand in the sports world. Late last year, the Staples Center arena in Los Angeles was renamed Crypto.com Arena. The crypto project entered into a 20-year agreement with AEG, which owns the stadium.
Crypto.com has also partnered with the Formula One racing series for $100 million and signed a contract with the UFC mixed martial arts league, under which the venue is to pay about $175 million over ten years.
The Socios website proudly displays the crests of several of Europe’s leading clubs, including PSG, Inter, and Manchester City.
These collaborations are beneficial for both the platforms and the sporting representatives. Sports franchises need to remain relevant to a new, younger audience. Perhaps cryptocurrency and digital assets will be the key factor in attracting new sports fans.