FUTURE OF NFTs IN SPORTS
Right in the heart of 2021 was the rising tides of NFTs in the cryptosphere, not negatively but to the moon. Many traders are vividly known for trading not only NFTs, but also cryptocurrencies like Bitcoin, Dogecoin, etc., calculate conversion rates using crypto calculators such as Ethereum calculator, etc. NFTs have created diversity as more cryptocurrency traders flaunt being part of the Bored Ape Yacht club lately. With the widespread of NFTs good news, more funds are believed to be invested in NFTs in the nearest future.
NFT art has a lot of technical language associated with it, yet it’s easy to understand. NFT meaning, “digitalization of assets through proof of ownership,” preaches the digitization of real-world events using blockchain technology. That is, having a pair of sneakers both in real life and in the digital sphere where you retain ownership rights. Of course, there are no receipts to display or establish your right of possession, but there is blockchain, a digital ledger that can verify proof of ownership and record your purchase transaction while the transaction is secured by the blockchain’s cryptographic codings. NFTs are dated back to 2012 when colored coins were tested out on the Bitcoin blockchain, but following the deployment of Ethereum blockchain in 2014, most NFTs have been launched on Ethereum blockchain.
HOW DOES NFTs AFFECT SPORTS
NFT, as one of the latest diverse blockchain capabilities, has been channeled to so many fields, which include music, gaming industries, fashion companies, etc. And for this article, let’s take a quick check on how NFTs affect the sporting segment.
In 2021, NFTs saw good traction when valued in dollars. In 2022, NFTs are expected to produce more than $2 billion transacted in the sports media segments, according to Deloitte Global, which is nearly twice the amount of 2021. And this can be seen in businesses associated with sports, where the most pressing and lucrative use case of NFTs can be one-time video highlights or cards of players. The worth of each NFT would be determined depending on so many criteria such as the athlete’s game, contents of the NFTs, the significance of the events surrounding the NFTs and the demands in the NFT marketplace. Imagine having a virtual pair of LeBron James’ digital shoes. But it’ll be expensive, much like that auction event in real life, and how much it’ll cost as its scarcity grows. NFT offers the opportunity for rightful owners to receive commissions on transactions from any platform that makes sales of such NFTs. If cryptos are used to make payments for these NFTs through smart contracts, they may allow for real-time compensation of present owners of already programmed rights. Given the usually difficult rights management involved with sports, this is very useful.
With NFTs, fans can now easily obtain ownership digital capturing of major athletic events. In a recent research report, Jeffries of investment banks predicted that the overall NFT market would expand to $75 billion by 2020, up from $14 billion currently, with much of this growth taking source from NFTs in sports. “Emotional attachment is that which will come with an NFT and that would showcase the originality and the digital demand in return,” said Christian Ferri, CEO of an NFT pro firm based in California, when asked about the memories NFTs would create. This would explain the growing relationship between memories attached to physical and digital assets.
While it is about NFTs boosting fan involvement to new heights, CEO of Capital Sports Media, Tim Mangnall says, “NFTs can’t be considered as merely a revenue-generating opportunity, while it is a new source of income without adding to the club’s cost sheet.” “Talking about certified owners, the obvious prospects are in the engagement levels of the fans. It’s all about checking on NFTs that are present and then giving fans that opportunity to acquire something special. NFTs are also a wonderful way to strengthen fan relationships. Fans can now get exclusive privileges, incentives, and experiences thanks to NFTs. Rights to choose songs to be played on the pitch, player of the month for a team, fans’ most valuable player, and so on may be granted to a specific group of NFT holders. Exclusive rights tokenized as NFTs would improve the flow of fan energy into the team by making fans feel more engaged in the future. “I believe that’s going to be what NFTs future would entail,” said CEO of Geer, Christian Ferri. He proceeded to say, “I think that individuals of different types, locations and personalities making purchases of the awards, rewards and experiences are going to be the prospect of NFTs,” says the author.