- Digital sport NFTs such as CHZ have experienced a sharp rise following the start of EURO2020.
- Physical collectibles have rerouted into the digital space as football teams jump on the NFT bandwagon.
- Football NFTs are a new form of digital interaction between players and their fans.
The formation of an ownership economy is taking shape as blockchain sees further utilization. Tokenization of physical assets is a means of facilitating ownership for a third party by deliberately providing some form of possession.
NFTs extend a bridge that enables digital interaction between sports entities and their followers. As an entire month of international football arrives in the continent of Europe, so too has blockchain technology, and has undertaken the task of building a new digital experience.
The EURO 2020 Frenzy Has Taken Hold of the Crypto Community
NFTs are leveraging off a new segment of the sports industry after becoming popular in the NBA, with NBATopShoots generating an uptick in exposure and sales. Now it seems it is the turn of football fans to gather collectibles and possibly even memorabilia in the near future.
According to WuBlockchain, the collectibles driven blockchain ‘Chillz’ rose in value by 34.88%, with national teams such as Argentina, who have joined the mass of football teams entering the NFT space, releasing their unique collectible tokens on Socios. According to a statement made by the Argentine Soccer Association, token owners will gain access to “unique experiences” such as discounts, sales, and special promotions. Sorare, an online, global, fantasy football game, announced a similar partnership with the French Football Federation (FFF), meaning that France will offer similar national team NFTs, including player cards like Antoine Griezman, Paul Pogba, and Hugo Lloris. Sorare is no stranger to strategic NFT collaboration as more than 140 licensed teams have joined the platform, including Bayern Munich, Paris Saint-Germain, and Real Madrid.
On the Flipside
- Thailand has banned the trading of meme coins and NFTs as part of its cryptocurrency crackdown.
- Beeple’s “Everydays” sold for $69 million, raising concerns about a potential bubble.
- The NFT market has experienced a 90% drop in the value of transactions since its all-time high on May 3rd.
Sports as the Leading NFT Magnet
Fanbases are the catalyst for developing collectibles. Although analysts have argued that NFTs are speculative, football and sports collectibles possess the same characteristics as their physical predecessors, and Stephan Cieplik argues that blockchain offers an opportunity
"to engage further our global fanbase." In related news, NFTs are being used to “buy stakes” in one particular football club. Al Tylis has announced his plan to sell a 1% stake in his Mexican league team Necaxa via the OpenSea platform. Selling a share of Necaxa via NFT is unprecedented and may generate new opportunities for clubs and investors to fund their favorite teams.
Sports: A Recipe for Success for Collectibles
Sports memorabilia, such as player cards, are unique assets that retain value over long periods of time. Recently a baseball playing card broke all the records, selling for $5.2 million. NFTs are positioned to add comparable value to the sports industry as society diverges towards new online mediums. The value of NFTs transcends price speculations and adds value as the digital metaverse continues to expand.
Interactions between collectors and sports fans are poised to become digital. Yat Siu highlighted that game users are aware of the potential of NFTs and want to expand outside of the rental economy. NFTs offer value to the collectibles dynamic over security, and so, with that under consideration, sports clubs, brands, and other industries must recognize the value which NFTs add to the digital landscape, and should aim to enter the market as soon as possible.
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