The sports industry has recognized the opportunity that cryptocurrencies may provide to optimize monetization. Optimizing fan engagement and attracting sponsors at a global scale has never had a better ally.
With the restrictions set by the COVID-19 epidemic, the sports business has responded by creating innovative strategies. Therefore, in this article, you will discover more about how crypto sponsors and fan tokens are helping sports clubs.
Crypto Sponsors in F1 and MLB
The idea of crypto sponsoring sports began in December 2014, when BitPay signed a sponsorship agreement with ESPN Events. Currently, the best example of crypto sponsorship in sports is Crypto.com. They have signed a $100 million sponsorship agreement with Formula 1.
Its second arrangement since the agreement with the Ultimate Fighting Championship (UFC). In addition to the UFC and Formula 1, Crypto.com has partnerships with other sports teams, including:
- National Hockey League (NHL) team, the Canadiens
- Aston Martin Racing Formula One team
— Crypto.com (@cryptocom) June 29, 2021
On the other hand, FTX has also been involved in sports partnerships. It became the first crypto exchange to sponsor the Major League Baseball (MLB), which signed a multi-year sponsorship. The seal is worth $210 million. Also, they signed a 19-year agreement with Miami-Dade County for the name rights to the NBA’s Miami Heat.
1) We're really excited to partner with @MLB!
FTX is now the official crypto sponsor of Major League Baseball.https://t.co/QngD1flayG
— SBF (@SBF_FTX) June 23, 2021
How are Fan Tokens Embracing Fans Worldwide?
Fan tokens are digital assets that allow sports teams, leagues, clubs, organizations, and athletes to increase fan interaction. It is especially helpful for teams to stay in touch with supporters around the world who can’t interact directly with their teams.
Therefore, the magic of a fan token is that it converts a passive fan into an active supporter. Also, the value of fan tokens is determined by how many fans value participation in the club/team and earning unique rewards.
Also, when users gain a certain number of fan tokens, they have the right to vote on a variety of decisions. The topics on which supporters can vote may include A club’s merch design, tour bus designs, ticketing, match locations, and MVP categories.
These tokens are fungible (unlike NFTs) and may be traded for future products. If the team increases the utility of these sports tokens or wins a league, the demand for these tokens will rise.
Chilliz Fan Tokens
Chiliz was the first and most well-known fan token, prompting an explosion of additional tokens such as:
- Barcelona Fan Token
- Manchester City Fan Token
- AC Milan Fan Token
- Juventus Fan Token
- Paris Saint-Germain, among others.
Also, Lionel Messi’s transfer from FC Barcelona to Paris Saint-Germain proves that Fan Tokens are more than simply a collectible or a commodity. Messi received a portion of the PSG Fan Tokens as part of his signing bonus. If PSG were to win the Champions League in the future, the value of the PSG Fan Tokens may skyrocket, potentially giving Messi power over his salary.
— Socios.com (@socios) August 12, 2021
NFTs in Sports
According to a Deloitte study, sports media NFTs would produce more than US$2 billion in transactions in 2022. It is nearly double the number for last year. According to the report, the sale of limited edition video clips of athletic moments or player cards will be the most popular and profitable application of NFTs in the sports business.
Therefore, the value of each NFT will be determined by the athlete’s popularity, the significance of the event, any additional content included in the NFT and demand. Now, we will describe one of the most important platforms that bring NFTs to sports.
SportemonGo, an NFT Sports Trading Platform
SportemonGO is the world’s leading tokenized sports platform. Sportemon Go is the market leader at the crossroads of four multibillion-dollar industries: Blockchain tokenized sports, NFTs, Metaverse, and Betting.
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— Sportemon Go (@sportemongo) February 6, 2022
Sportemon Go would allow users to hunt and collect NFTs of their favorite athletes. The goal is to revolutionize the gaming and NFT collection industries. Also, participants will be able to interact at stadiums and sports events like never before.
Moreover, this company is completely funded by its token, SGOX, a BEP20 token. This native token will fuel the platform’s entire economy. Also, it will enable players to buy NFT items, form their ultimate team, play mini-games, receive prizes, and much more.
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