What can NFTs bring to the sports industry and fans?

Since the release of CryptoKitties in 2017, the popularity of NFTs has grown considerably, and the industry is set to grow by over $800 billion over the next two years.

If the most impressive thing about NFT is the “Boring Ape Yacht Club” and the “P2E” project, what else is worth paying attention to in NFT?

In fact, the sports world’s attention to NFTs has continued to follow along with its development. For example, professional sports leagues have established their own platforms to allow fans to interact with their favorite teams or players; sports clubs will cooperate with digital asset platforms to jointly create a Metaverse community; sports IPs build online virtual reality by entering the Metaverse platform Spaces (UEFA in Roblox with Champions League mascots) or crossovers with other public figures to launch NFTs, etc., are all things that are happening in sports.

NFTs are unique and non-interchangeable pieces of code stored on the blockchain. These code strings can be linked to assets such as artwork, digital and physical goods. NFTs are created through a process called minting, where creators can set a limit on the number of NFTs they want to mint, creating scarcity.

Scarcity is a phenomenon that has always applied to physical assets because they are actually built with limited resources.However, digital goods have never been scarce because they can be easily replicated.

But now NFTs have changed that and we are now seeing a growing market for collectibles in the digital world.

How can sports fans get involved with NFTs?

When it comes to sports, fans have such a strong affinity for their favorite player or team that they interact with them in every possible way, including watching live games, buying merchandise, or attending autograph events.

Fans want to be closer to their favorite teams and players, which provides opportunities for sports teams and leagues to generate additional revenue.

Notably, sports leagues have noticed the value of fan engagement and continue to create platforms where fans can buy, own and trade digital memorabilia.

A well-known example is the National Basketball League’s NBA Top Shots NFT marketplace, where fans can buy, sell, and trade basketball videos.

The videos on the platform are dubbed the NBA’s best shot moments, and each video shows a different highlight of a basketball game.

The most expensive big moment to date sold for $387,600, which included LeBron James’ dunk against the Houston Rockets.

The dunk was LeBron’s way of paying tribute to his friend and Los Angeles Lakers legend Kobe Bryant who was killed in a helicopter accident.

Launched in 2020, the marketplace is a joint venture between the NBA and CryptoKitties creator Dapper Labs. It generated more than $230 million in sales within a year of its launch.

Some videos are sold in packs, similar to physical trading cards like Pokèmon and Yu-Gi-Oh. There’s also a gamification element, with different rarity levels, from “common” to “legendary,” which is a standard system in role-playing games.

Rare videos are more likely to command higher prices than more common highlights, increasing their perceived value as collectibles.

The NBA is not alone when it comes to sports leagues building their own engagement platforms. The National Football League and National Hockey League are developing their own NFT platforms, while Major League Baseball has released its NFT marketplace.

iNFTnews found that the sports industry is entering the NFT platform or creating a Metaverse community through combing, as follows:

1. Atlético de Madrid Football Club has reached an official cooperation agreement with digital asset platform Amber Group. WhaleFin, a Metaverse platform under Amber Group, will sponsor Atlético de Madrid’s chest advertisements, with a total value of up to 40 million euros. In this cooperation, the two parties will also jointly promote the creation of the “Atletiverse” Metaverse community.

2. In December 2021, Manchester City Football Club cooperated with Sony to create a global online fan community. The landmark building of this online fan virtual community is a real-time rendering of the Etihad Stadium, Sony’s own e-sports tracking The system will bring fans a more immersive experience.

3. In cooperation with the Meta League, the NBA launched an online virtual community “NBA Lane” on Horizon Worlds.NBA Lane is an online virtual space for free throw shootouts, low-gravity dunk contests, big-screen game content, selfies with the NBA trophy room, and more.

It’s not just sports leagues that build NFT-connected fan engagement platforms, but non-sports league organizations as well. For example, Fanzee is an upcoming platform that raised $2 million to build a marketplace and ecosystem where sports fans can complete challenges like quizzes and games to increase their fandom and trade NFT collectibles.

Similar to NBA Top Shots, Fanzee has elements of gamification. Sports clubs can create interactive challenges, such as testing how closely fans are paying attention to games based on previous games. Additionally, fans can also earn experience points and NFTs based on their game interactions. Experience points increase their “Fan Rank”, which is displayed on a leaderboard, and fans receive prizes based on their ranking.

“Gamification is a great way to increase user engagement on the platform, and fun and exciting experiences help engage users. There must be a lighthearted story like Goblin Town, though.” Max, Ecosystem Growth Leader, Flare Network Luck told Cointelegraph, adding that “NFTs are very unique in how they help communities stay active and engaged, especially with the emergence of secondary markets in different ecosystems and the potential for NFTs to be used in various gaming Metaverses.”

How are NFTs changing the sports industry?

Fan engagement platforms like the NBA Top Shots NFT are bringing real-world industries like collectibles to the Web3 realm.

NFTs appeal to younger, more tech-savvy users, and it adds modern ways for fans to interact with their favorite teams and players, while also creating an additional revenue stream for sports leagues.

NFTs are a great way for young fans to interact with their favorite teams and players. NFTs are a bit like a marketing tool that can attract new people to a wide range of engagements. This is especially true for young fans who have collectibles on their phones that can Share the experience with friends at school or college.

For the platform, in terms of user engagement, the platform should have a user-centric philosophy instead of just selling tokens to make quick money. Seeing more adoption by focusing on user engagement as only users have the potential to introduce new users to the platform will increase user retention, focusing on high engagement and user retention will have the most success. Because fans will use these platforms for personal pleasure, rather than trying to make money by trading the tokens or digital assets they buy.

If fans use digital assets correctly, it will bring them closer to the team. Fans will have an easier time keeping up with the teams and players they care about most. Because of this, sports organizations have the opportunity to use digital assets to their advantage. If most sports leagues have their own NFT platforms, one thing that will come as no surprise in the next few years is that fans can interact with blockchain-based assets.

Félix Le Breton, digital yield manager at French esports organization Team Vitality, told Cointelegraph, “As long as you stay away from speculative methods, NFTs can be a good way to attract younger fans. Obviously, the younger generation is familiar with the principles of digital ownership and they can easily join.”

According to the 2021 Global Sports Market Opportunities and Strategies Report released by Yahoo Finance, the global sports market is expected to reach $599.9 billion by 2025. As the epidemic gradually improves, it will reach $826 billion by 2030.

1. In nature, the biggest change that NFT brings to the sports industry is the change in management rights. Because decentralized Web3 means handing over power from big companies or big club owners to users including fans, club members and athletes. They are no longer just sitting there, they can now control and experience events in a virtual world.

2. NFT will help bring the sports industry into the Web3 field. On average, 76% of avid sports fans worldwide are willing to learn more about NFTs, so sports industry-related organizations have a great opportunity to introduce blockchain-based assets to potential users.

3. NFTs can change the world of sports by bringing offline activities into the online world. In the past, fans collected trading cards, autographed t-shirts and footballs and traded in printed photos of their favorite players. As the world becomes increasingly digital, young fans will find new ways to interact with their favorite teams and players through blockchain technology.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-can-nfts-bring-to-the-sports-industry-and-fans/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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