The Future of Sports Includes NFTs and Tokenization
A new report by PwC has placed NFTs and other digital assets among the top ten major trends within the sports industry.
The report, which details the Sports Outlook for North America, reveals that the future of the sporting industry lies at an intersection with non-fungible tokens.
Citing various factors ranging from altering sports technology infrastructure to driving fan engagement, the report pointed out three main use cases for NFTs in the sporting industry.
The first of these uses is collectible NFTs, which refers to platforms that sell collectible, authenticated, and limited-edition digital content, which we have already started to see adopted in mainstream sports.
Specifically, the report mentions the digitization, minting, and trading of player trading cards, match tickets, and other objects or materials that can be placed on the blockchain. These collectibles, inadvertently, could be displayed or even shared across the metaverse.
We have witnessed the success and longevity of this, as Dapper Labs has continued to popularize this application with NBA Top Shot. This NFT tokenizes nostalgia and some of the NBA’s greatest memories and highlights over the course of history. In 2021, Dapper Labs accounted for nearly $827 million worth of transactions, showing that other games in addition to Axie Infinity can certainly grow and have potential in the space.
Aside from its collectible use cases, NFTs could also bring fan loyalty and fan experience in sports to the next level by providing season ticket members with verified tokenized passes.
While season ticket holders already have access to special privileges from their clubs, having NFTs too could allow them to get digitized tokens of the matches they attend and also have access to their special benefits even if they lose their physical cards.
Virtual Access Tokens
Finally, NFTs can provide virtual access tokens for sports fans who prefer the virtual experience that comes with the space. With interest in the metaverse and related spaces spiking to new highs, these virtual tokens would become much more in demand.
They can be likened to the virtual version of season ticket providing holders with perks like player cams, bench cams or even virtual locker-room access.
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