Empty stadiums, postponed events, zero tickets…
The above was a familiar theme in the sports industry in the aftermath of the Coronavirus Pandemic. Team owners, marketing teams, players, and fans rued the fact that the pandemic brought to an end sports as we knew it.
At a time when the so-called experts were wracking their brains of existing to a new reality, a probable solution was offered by the Cryptocurrency Ecosystem.
Blockchain Technology, an unlikely hero, found new takers in the sports fraternity. All of a sudden, we had everyone from Juventus to AC Milan, Barcelona, and Arsenal lining up to explore the application of this revolutionary tech to better business interests.
How did Blockchain, Tokens, and Cryptocurrencies emerge as saviours for sports teams?
There are three major ways how Cryptocurrencies and Blockchain tech has been adopted by sports teams-
- In the form of Fan Tokens-
Sports teams have created their own tokens that are fractional financial assets that run on Blockchain technology. This has been done primarily as a way to boost fan engagement, make ticket sales more transparent, and sell merchandise online.
Fan Tokens can be bought by fans that can redeem them in the above ways. They can also use those tokens to take part in voting on club-centric issues. This makes fan participants in the day-to-day happenings of their sporting teams.
- Pay Players in Wages and Transfer Fees-
A number of Crypto Exchanges have gone on record stating they are receiving a lot of requests from players in Cryptocurrencies. Turkish Club, Harunustapor, signed a player by paying him to transfer fees in Bitcoins.
Clubs and players have realized that direct payments through Bitcoins are highly advantageous. Not only does it eliminate millions in commission fees paid to agents, but also helps maintain records, transaction details and align taxations for both the entities.
- Player Contracts through Blockchain and Smart Contracts-
There is a lot of hidden transactions that take place between players and clubs. Many clubs and players feel that the controversial nature of agreements can be made more transparent to benefit both parties.
Blockchain Technology can be used to keep clean records and put into force a more transparent process of player signings. Having a centralized system of record would mean that no one can backtrack.
Fantasy Sports, Betting and Cryptocurrency Adoption
The past few years have seen the fantasy sports industry literally explode! Making teams, winning money, the excitement driving the entire thing has attracted millions of players all over the world.
Gaming companies that run Fantasy Sports Leagues have been quick to realize the advantages of cryptocurrency adoption in their niche. From player rewards to betting with Bitcoins and Ethereum, you can do all this and much more on fantasy sports.
In most countries of the world, Fantasy Sports is still very much an unregulated industry. As governments are trying to understand how it works, gaming companies are raking in dollars, creating excitement.
With public sporting events (sans fans) becoming the new normal, many people try to engage with such platforms to enjoy staying connected to their favourite teams and sporting events. Players too are investing in such platforms as they are recording phenomenal growth. If you wish to invest in cryptocurrencies, you can visit Push Money App
The Bottom Line
Sports and its relationship with Cryptocurrencies are likely to grow over the next few years. With Blockchain and its potential of generating revenue becoming a reality during the pandemic, sporting teams and the brains behind them are only going to continue experimenting and investing.
Experts predict that the engagement is likely to lead to new investments led by teams and players in this region. This can be in anything from crypto exchanges to start-ups experimenting with Blockchain technology.