January 25, 2022

The interesting combination of sports and crypto

One of the sectors that have switched to cryptocurrencies in 2020 and 2021 has been the industry you sport . You might be thinking esports or entertainment games, but it’s really about professional sport conventional. Athletes and teams have entered crypto, very unexpectedly. This was not just in terms of approvals for a coin or token, but in actual possession of the digital asset. While the acceptance of the traditional financial sector would be the least expected, it would be more acceptable with professional sport.

This combination sends shock waves around the world. Imagine seeing your favorite sports site as a cryptocurrency exchange. Think about your favorite athlete accepting his salary in cryptocurrency without objection. Now how about the ability to own your team’s own token in the form of NFT (non-fungible tokens) ? That’s what happened, and it’s not behind the scenes, it’s there for the audience to see.

The Miami Heat, an American NBA League professional basketball team, have partnered with the FTX cryptocurrency exchange. In their agreement, the local stadium where the Heat play their games has been renamed FTX Arena a from the 2021-22 season. FTX has grown into a major player in the crypto industry, successfully on digital exchanges.

After the FTX / Miami Heat partnership, another crypto exchange , Crypto.com, made waves when it struck a deal with the Centre Staples . It is the home of the Los Angeles Lakers. In the deal, worth $ 700 million over 20 years, the arena will be called Crypto.com Arena. This has received negative feedback, but for the most part it’s a done deal.

Whether this is a trend or not, it shows that crypto exchanges have an influence. Binance Yes Coinbase These are other great exchanges, but they haven’t made such an association yet (until December 2021). FTX and Crypto.com are showing their influence which gives them more visibility which is good for their business. It also brings crypto into the mainstream, as the sport has a large audience that is also global.

Several popular athletes have started to accept or partially accept cryptocurrencies as a form of payment. This includes Aaron Rogers , Odell Beckham Jr. , Russel okung , Sean Culkin and the Kings of Sacramento. Other athletes such as Trevor Lawrence and Saquon Barkley have entered into endorsement deals to accept cryptocurrencies as a form of payment. The most accepted form of encrypted payment is in Bitcoin .

Athletes realize the value of the primary crypto asset, but we are not sure if they fully understand cryptocurrencies. Even if it is, this is an opportunity for those who pay in cryptocurrency to explain not only its value but also its fundamentals. It goes beyond being a currency but an investment for storing wealth and a technology for sending money.

The 2020s mark the era of the fan token. It is not a physical token with engravings or logos, but a digital token that provides additional benefits for fans who own it. Its ownership is verified and secured via blockchain like NFT. This idea has gained momentum in the EU, among others. One of these tokens called Chiliz (CHZ) has issued fan tokens in partnership with sports teams such as FC Barcelona, ​​Paris St. Germaine and Juventus.

The Dallas Mavericks basketball team has also started selling NFT collectibles through their website. These NFTs are explained by the Mavericks as “unique digital items of proven authenticity” on the blockchain. They have a free NFT giveaway in honor of the veteran gamer Dirk Nowitzki . These are limited, thus giving them a value over time. When issued as an NFT, it grants verified ownership which also proves the authenticity of the item.

For developers, this is a good way to add value to their token. Partnering with a big sports team or a big league can increase token sales. For sports teams, this means additional revenue streams that they can leverage for additional or premium benefits. Consider being able to reserve a special viewing section in an arena using Fan Tokens. Other perks could be access to special content or rewards for attending games.

Some top athletes and sports figures have also jumped on the crypto bandwagon. Superbowl champion Tom Brady has Bitcoin. NBA Champion Steph Curry has entered the NFT game. Mavericks owner Mark Cuban has been a supporter of Protocoles Ethereum Yes DeFi (Decentralized Finance) and even invented some NFT. Tampa Bay Buccaneers tight end Rob Gronkowski and NASCAR driver Landon Cassill have teamed up with Voyager Digital. These partnerships are a way for cryptocurrencies to connect with a larger audience among millions of sports fans.

It’s not about whether they are doing it for publicity, but whether they really care what they are supporting or claiming. They seem to have more understanding than the average person to enter cryptocurrency with confidence.

It’s an interesting time to be a sports fan and a cryptocurrency holder. The combination comes at a time when cryptocurrency adoption is increasing even more. This could open the floodgates for more companies between fintechs and sports leagues. The important thing is to understand cryptocurrencies not as a speculative asset, but as a useful asset. It can be used for rewards and fan benefits, as well as collecting rare items to trade and sell. We’ll know for sure in the future, but like the many use cases in crypto, it will evolve even further.