Will blockchain-powered innovations move beyond the realm of game NFT collectibles?
Deloitte said yes, in a new report (PDF).
In addition to in-game NFTs, sports NFTs and fan tokens have great potential and growth opportunities in the coming years.
Deloitte in its April report “The 2022 Sports Industry Outlook” emphasized the continued digitization of sports and the role of sports NFTs in advancing the blending of the physical and virtual worlds.
NFT and Fan Token to create utility
Sports-related NFTs and fan tokens are inevitable as the NFT economy expands. Firstly the sole purpose of these digital tokens is to engage fan communities. They provide a more effective means of support and connection between sports teams and their fan networks.
NFTs are still in their early stages of development in the games business, but their immense potential is evident.
Businesses sometimes need to sell digital photos or videos in the form of NFTs, such as a historical game, milestone, or iconic moment, allowing customers to exchange them like an online version of a delivery card.
Unlike regular videos, which are easily copied, NFTs are stored on a blockchain, a publicly shared ledger of transactions that certifies their authenticity.
more uses out there
Among the developed projects, there has been an increase in the combination of fan tokens, NFTs and collectibles.
Despite the recent slowdown in the global crypto market in May, fan tokens from some football clubs, such as the Paris Saint-Germain Fan Token and Manchester City Fan Token, saw significant growth.
The fact that the season was coming to a close prompted it. Fan tokens and NFTs are symbolic assets, souvenirs or sports collectibles in the eyes of fans.
According to Deloitte, blockchain-enabled technologies have the potential to unlock all the hidden possibilities and additional opportunities in the future.
“There will be a nexus around sports collection, ticketing, betting and gaming. we’re just starting to see it [cryptocurrency’s] potential, as well as new markets that can grow beyond this,” Prepared the outline of the report.
Virtual currencies not only foster engagement between teams and fans around the world, but they can also be used for promotions, contests, and rewarding fans.
Awards and more
According to the report, future development of smart contracts could lead to “partial ownership of season tickets and suites, as well as a reinvestment of the ticket resale process.”
Seasonal Ticket Membership is a major use case for NFTs and fan tokens to improve the experience of a committed fan.
It also provides access to additional unique content, stadium experiences, and limited-edition maintenance for the games, as well as any other bonuses. Virtual tokens can provide holders with additional behind-the-scenes benefits such as access to player cams or even virtual dressing rooms.
Furthermore, the development of dynamic NFTs backed by smart contracts promises to expand the use cases of NFTs in the gaming business.
development and barriers
While the combination of blockchain and the fan club model has set a new paradigm in the crypto economy, it also faces several hurdles, such as standards implementation, fan education, and tax compliance.
On the bright side, digital assets are quickly integrated into the sports ecosystem, with successful experiments on sports collectibles, game tickets and esports.
NBA Top Shot is an example of the success stories surrounding the NXT promotion. Since its launch in Q4/2020, sales have remained stable over time.
The owner of the project, Dapper Labs, continues to secure contracts to bring official NFT collectibles to sports major leagues such as the NFL, UFC, as well as many other renowned athletes.
Non-fungible tokens could fundamentally change the way fans interact with the game and their favorite teams.
The formation of the metaverse powered by NFTs, digital assets and wearable devices created a crossover between the physical and virtual worlds.
Deloitte said in the report that the opportunity for sports-linked NFTs could be $2 billion in 2022.