Sports Industry is now Embracing Crypto

Sports Industry is now Embracing Crypto

ENTERTAINMENT | Jul 19, 2021 | WOZINGA NEWS

Sports Industry is now Embracing Crypto

  • Crypto has seen fast adoption throughout the sports world.
  • High-profile sponsorships are giving crypto companies mainstream exposure.
  • Crypto assets like NFTs and fan tokens are creating new value for sports organizations.

By Elah Mae Ariate Wozinga Journalist

Sports Industry Embracing Crypto

The sports industry is quickly adopting Crypto assets to keep clubs and fans connected in a socially disconnected world.

As a result, the sports industry is rapidly adopting blockchain to revolutionize revenue streams and fan experiences through increased fan tokens, crypto-sponsorships, and non-fungible tokens.

The pioneer cryptocurrency and some leading altcoins, are being accepted as a form of payment, based on Yahoo Finance report. With sports fans able to purchase tickets and merchandise while staff, player wages, and transfer fees are paid.

Crypto Exposure Through Sponsorships

Bitpay, a Bitcoin payment provider, partnered with ESPN in 2014 to sponsor the St. Petersburg Bowl, a college football game. Although it was minor, it was significant because it was the first major crypto sports deal.

According to a Crypto Briefing report, crypto made its way to the NFL this year when the New York Giants became the league’s first team to have a crypto sponsorship, partnering with Grayscale Investments.

While football began the trend of crypto sponsorships in 2021, it is difficult to find a sports league that does not have some connection to cryptocurrency. Portland Trail Blazers, an NBA team, recently announced a partnership with cryptocurrency cashback app StormX.

Earlier this year, the Miami HEAT signed an exclusive naming rights agreement with cryptocurrency exchange FTX, renaming their home stadium the “FTX Arena.” The $135 million contract was signed for a period of 19 years. Following this, on June 23, FTX signed the largest sports sponsorship in crypto history, partnering with Major League Baseball in a five-year deal.

The Rise of NFTs In Sports

Collectible NFTs are another way that blockchain technology is adding value for sports fans.

Non-fungible tokens (NFTs) are a type of asset that allows creators to tokenize digital art, collectibles, or any other type of asset on the Internet. NFTs have improved collectibles because the blockchain technology underlying them enables provable ownership and scarcity.

Because of its involvement in the digital collectible card platform NBA Top Shot. The NBA has been one of the most successful organizations to use NFTs. The game, which is based on the FLOW blockchain, allows users to purchase, sell, and trade NBA “moments” while keeping them in digital wallets on the blockchain.

In 2021, the platform experienced tremendous success, with over one million users in May. Top Shot’s secondary market is also attracting big money, with a rare LeBron James moment selling for $387,600 in April.

Do you like the adoption of Crypto throughout the sports world?

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