The exciting world of sports is becoming even more exciting as NFTs are ready to make a big impact in 2022. Non-fungible tokens (NFTs) are unique digital identifiers that use blockchain technology to record ownership of media. Fans and enthusiasts of a variety of sports will not only be able to view licensed digital media for their favorite sports moments, but will also be able to get them in unprecedented ways.
Ownership and use of rights in digital content is made available through the use of NFTs by providing the content with certain non-replicable identifiers. This identifier is recorded in blockchain technology or distributed databases, especially Flow or Ethereum. Most sports NFTs sold to date do not have ownership or use of the underlying media, but NFT ownership may include ownership of the underlying digital assets.
Each NFT has a built-in smart contract, the terms of which are executed immediately and irreparably in each transaction and are applied indefinitely. Think of NFTs as a digital version of the physical, and begin to understand the amazing opportunities embedded in this innovation.
Deloitte Global, one of the world’s leading audit firms, expects sports media NFTs to generate more than $ 2 billion in transactions next year. This is about twice that of 2021. It is believed to be four to five years at the end of 2022. One million sports fans around the world buy or donate NFT sports goods.
The wider NFT market, especially digital art, which generated more than $ 100 million as of August 2021, is expected to further increase interest in sports NFTs, major such as World Cup and Tennis Grand Slam. Sports competitions will play a central role, and fans are expected to be involved. The NFT is set to spike.
One of the key sources of revenue for sports NFTs in 2022 is the sale of player cards or limited edition video clips. NFTs are valued by a variety of factors, including athlete popularity, demand, additional content in the NFT, and the importance of the event. These elements can be roughly translated into winning goals, dunks, and buzzer beaters. , Or a home run. These NFTs will be sold to the highest bidders at auction.
Angle of sports souvenir
In the past, fans would go to the store, buy sporting goods, physically wear / use them, and publicly identify them with their favorite team. NFTs are changing this story because fans can easily get the right to digitally capture important sporting moments. Investment bank Jeffreys said in a recent research note that the broader NFT market is expected to grow to about $ 75 billion, compared to the current $ 14 billion, much of the boom in the form of sports NFTs. Expected to be. The sports NFT industry has grown significantly as sports fans have always wanted to buy dedicated tokens associated with their favorite teams. This could be a signed matchball, a signed jersey, or a signed baseball cap.
Christian Ferri, CEO of California-based NFT Pro, said: “People are trying to get physical souvenirs at NFTs, which will guarantee their authenticity and digital rarity.” This will explain the increasing relationship between physical and digital souvenirs.
Like sneakers, digital versions of real objects designed or branded by athletes can exist digitally. The digital shoe design Gucci Virtual 25 can only be worn using augmented reality.
When fan engagement increases
NFTs are also a great way to strengthen your relationship with your fans. Rightsholders are gradually exploring the best way to apply NFTs to improve their fan experience by allowing fans to capture and view their team’s NFTs.
Fan tokens are similar to membership cards in that they give fans the opportunity to vote on club issues. Fans can take part in issues such as kit design, players this month, songs played between games, training ground names, and charity initiative selection. Chiliz ($ CHZ), a fan token website and cryptocurrency, Socios.com offers fan engagement tokens focused on sports and esports.
In fantasy sports league applications, NFTs can also be used to represent players who can join a team participating in a competition during the season.
The popularity of sports NFTs is increasing day by day as it offers amazing and seemingly endless possibilities for fan engagement. However, buyers and sellers of these digital assets have difficulty predicting whether sports NFTs will add even more value in the future, so they should try to make significant profits in the long run using these NFTs. You need to be careful.