NFTs are giving sports a new way to make money. NFTs have proven to be an asset for digital safekeeping and addresses the rising challenges of a remote-first world. The Coronavirus pandemic presented a unique challenge for event organizers — finding a new revenue source amid empty stadiums, dipping merchandise sales, and non-existent tourism.
Amid the uncertainty, crypto has been extremely handy as fans could buy or trade team tokens on the exchange. FC Barcelona, for example, held a vote on the choice of motivational artwork that would be used in the dressing room at Camp Nou. At the same time, Juventus allowed fans to choose the celebration song that would be played whenever the team scored.
Ahead of its 2021 Formula One car launch in March, Aston Martin Cognizant Formula One Team announced a global partnership with the cryptocurrency platform.
What is NFT?
NFT stands for non-fungible token. These “one-of-a-kind” digital assets can be bought and sold like any other piece of property, but they have no tangible form of their own, that is they are unique and cannot be interchanged.
Think of it like the old sports cards, like the pokemon and the WWE cards we had, but only this time it is all DIGITAL.
NFT is supported by blockchain technology and can be traded online.
BBC explains it simply:
“In economics, a fungible asset is something with units that can be readily interchanged – like money.
With money, you can swap a £10 note for two £5 notes and it will have the same value.
However, if something is non-fungible, this is impossible – it means it has unique properties so it cannot be interchanged with something else. It could be a house, or a painting such as the Mona Lisa, which is one of a kind. You can take a photo of the painting or buy a print but there will only ever be one original painting.”
Types of NFTs
NFTs can really be anything digital –
- A unique digital artwork.
- A unique sneaker in a limited-run fashion line.
- An in-game item.
- An essay.
- A digital collectible.
- A domain name.
- A ticket that gives you access to an event or a coupon, Songs, videos, digital designs, etc