Why Cryptocurrencies Are the Future of the Sports World

As an analyst who has been closely observing the intersection of technology and sports for several years now, I can confidently say that the integration of cryptocurrencies into sports, particularly soccer, is not just a trend but a paradigm shift. This transformation is redefining fan engagement, creating new avenues for participation, and blurring the lines between virtual and real-world sports experiences.


Cryptocurrencies are increasingly impacting the world of sports, particularly in soccer, transforming how fans connect with their idols. The expanding influence of digital currencies is reshaping this relationship. Now, soccer teams are offering Non-Fungible Tokens (NFTs) and coins, appealing to a vast audience that seeks more than just the thrill of the game.

2018 marked the start of a significant shift when Paris Saint-Germain (PSG) announced they would introduce their own digital coin. Since then, numerous soccer clubs have followed suit by issuing their own tokens, while NFT cards are gaining popularity. This integration is revolutionizing fan interaction with sports, providing innovative opportunities for participation and investment.

Similar to participating in sports, understanding potential hazards and planning your approach wisely is essential when it comes to responsible gambling, as the temptation of immediate profits can sometimes result in risks that need careful management. Now, let’s explore how these digital assets are transforming the world of sports and what we might expect moving forward.

Sorare: The Most Popular NFT Platform for Soccer Lovers

Over the past few years, I’ve noticed an exciting trend among soccer clubs: they’ve been launching their very own Non-Fungible Tokens (NFTs), and one of the most buzzworthy platforms for this is Sorare. For me as a crypto investor, Sorare offers a unique gaming experience where I can build my dream virtual soccer team from a pool of around 4,000 players. The players are obtained in sets of cards, each representing different match episodes.

Over 130 significant soccer clubs worldwide are now partnering with Sorare, such as PSG, Bayern Munich, Liverpool, Juventus, Real Madrid, Zenit, and Spartak. According to Nonfungible.com’s tracker, Sorare ranks among the top three rapidly expanding NFT projects, alongside CryptoPunks and SuperRare, with a digital transaction volume exceeding €10 million. The platform has seen an average monthly growth of 115% in Russia since the start of the year.

How Sorare Works? 

Throughout the game period, Sorare offers fans a restricted set of cards: 100 rare, 10 extremely rare, and 1 exclusive one. These cards possess dual worth – collectible (capable of being sold, bought, or exchanged) and in-game: it’s essential to keep tabs on the real-life status of the player associated with the card, such as their health and playing time, including if they score a goal. This process varies from caring for Tamagotchi due to its potential profitability: each time a player scores a goal in a genuine match, the Sorare card owner receives actual money.

Other Competitors to Sorare

As a researcher delving into the realm of NFTs, I’ve discovered that the soccer-themed NFT market isn’t confined to Sorare alone. A vibrant community exists across various virtual trading platforms adhering to the NFT protocol, such as OpenSea, Rarible, Sorarebuzz, Soraredata, and Soraremega. Interestingly, these cards are not just limited to these platforms; they’re even traded on eBay.

Crypto and Sports: Beyond NFTs

Cryptocurrencies’ realm extends beyond NFTs into the sphere of sports, as evident in the emergence of soccer club tokens. This trend kicked off in 2018 when Paris Saint-Germain announced their intentions to launch a unique coin of their own. These sports clubs utilize third-party IT platforms for token issuance, with Socios being the most prevalent platform, boasting top-tier clients such as Barcelona, Juventus, Roma, and Atletico Madrid.

What is Fan Token Offering? 

Socios and its founder Alexandre Dreyfus are responsible for developing the idea of Fan Token Offering (FTO). In the year 2018, their platform introduced its cryptocurrency, Chiliz (CHZ), into the Ethereum blockchain, marking the beginning. Later in November 2019, Juventus Turin became the first to host a Fan Token Offering on this platform.

Starting from late 2019, Chiliz has been available for trading on Binance, which is among the top crypto exchanges when it comes to trading volume. Recently in March, the value of this altcoin surged approximately 700% over a week. Last year, soccer clubs accumulated more than $30 million from Chiliz, and according to the CEO of the project, Alexander Dreyfus (in an interview), they are expecting to earn around $100 million in 2021.

Having fan-tokens gives supporters the opportunity to be part of the team’s journey; such as deciding the song played after a goal for Juventus, selecting a new slogan for Milan, or choosing the inscription on the captain’s armband for Paris Saint-Germain.

Conclusion

With each passing year, the realm of cryptocurrencies continues to broaden, and it’s increasingly likely that its influence within the sporting world will swell as well. As more mainstream sports consider their entry into this digital landscape, they aim to profit from Non-Fungible Tokens (NFTs), crypto tokens, and potentially other emerging financial instruments. The future will reveal whether this venture proves successful or not.

Read More

Sorry. No data so far.

2024-08-31 15:17