#110. Cryptocurrencies and Blockchain
Cryptocurrency and Web3 in the Sports Industry
Let’s take a look at the impact of cryptocurrencies on the world of sports, and how the sports industry uses blockchain.
Cryptocurrency and Tickets to Sporting Events
Cryptocurrencies have found their use primarily in the distribution of tickets for sporting events, bringing innovations and benefits to this field. Here are some of them:
- Secure transactions. Payments using digital assets provide an increased level of privacy for payers.
- Inclusivity and accessibility. Cryptocurrencies reduce geographical and currency barriers. Fans from one country can easily purchase tickets to a match of a team from another country without worrying about currency conversion or payment system restrictions.
- Transparency and impossibility of counterfeiting. Blockchain technology provides a high level of transparency and the inability to counterfeit tickets. This protects fans from buying fake tickets.
Cryptocurrency and Fan Engagement
Digital assets create new interactive and engaging opportunities for fans to get involved with the world of sports. This is facilitated by:
- Voting. Digital assets allow fans to participate in votes related to their favorite sports clubs or events. They can express their opinions and influence the decision-making of sports team managers using crypto tokens. For example, by using the Binance Fan Token platform, you can vote for the best player in a particular match or choose what color tie the coach will wear.
- Exclusive content. Sports organizations and teams have started giving token holders personalized access to videos, interviews of their favorite athletes, or photos from their favorite team’s practices. For example, the Golden State Warriors basketball club released a unique NFT collection of championship rings and ticket stubs from the team’s legendary games. This way any fan can own digital versions of iconic items and artifacts associated with memorable events.
- Fan tokens. Some sports teams issue their own tokens on the blockchain. Fans can use them as investments or store them to receive various bonuses and rewards such as free tickets, merchandise discounts, and other perks.
- Virtual arenas. Thanks to virtual (VR) and augmented (AR) reality technologies, fans can gather, socialize, and even interact with players in real-time. Major tech companies are creating Metaverses that allow fans to watch sporting events in a virtual space. For example, residents of China could watch the FIFA 2022 World Cup in Qatar from the comfort of their homes.
Cryptocurrency and Advertising Campaigns
Cryptocurrencies have also started to play a significant role in sponsorship deals and advertising campaigns in the sports industry. Here are a few ways cryptocurrencies are impacting this field:
- Partnerships with crypto platforms. Plenty of sports organizations, clubs, and individual athletes are partnering with Web3 projects. These partnerships can include placing logos on athletes’ uniforms, sports fields, or sports equipment. For instance, the Crypto Snack project’s logo was placed on the uniforms of the Espanyol players in FIFA 23, just as it is in reality.
- Marketing campaigns. Cryptocurrency projects conduct advertising campaigns with the participation of famous athletes. Sports stars are attracted to shoot commercials, booked for publications on their social networks, and offered ambassadorship and participation in other formats for promoting Web3 products. For example, at the 2018 Olympics, Dutch-Canadian speed skater Ted-Jan Bloemen became the face of the ONG Social crypto community and the platform CEEK VR, receiving payment in crypto, which was the first such precedent.
- Philanthropy. Some athletes are using cryptocurrencies to support charitable initiatives. They may accept cryptocurrency donations or use tokens to raise money for charitable projects, which are often used for marketing purposes as well.
Cryptocurrency and Sports Betting
The integration of cryptocurrencies into the sports betting industry has improved the player experience and brought significant innovations to the field, including:
- Anonymity and privacy. Cryptocurrencies allow users to maintain a high level of privacy and bet on sports anonymously, without revealing personal details and financial information.
- Fast and cheap transactions. Cryptocurrencies provide almost instant transfers and greatly reduce transaction costs.
- Global access. Cryptocurrencies remove geographical and currency barriers to betting. This means that sports betting becomes accessible to a wider audience, driving industry growth.
- Automation. The use of smart contracts considerably speeds up the process of placing bets and withdrawing winnings. Users can react quickly to changes in betting odds and adjust their strategies.
- Openness of processes. Blockchain provides a high level of transparency and makes it impossible to manipulate betting results. Thanks to Provably Fair technology, players can be sure that odds are calculated and winnings are awarded fairly.
- Micro betting. Cryptocurrencies enable betting small amounts on various aspects of sporting events. Thus, players can participate in betting on a wide variety of parameters, which makes the gambling process more interesting.
To sum up, it’s safe to say that cryptocurrencies have not only boosted the engagement of sports fans by changing the way they interact with their favorite teams and athletes but they have also become an important part of the commercial component of the industry, sponsorship deals, and advertising campaigns. Digital assets have made the world of sports more innovative, interactive, and entertaining.