Cryptocurrencies And Sports: What Unites Them?

Cryptocurrency is gaining popularity worldwide, and, of course, it could not bypass such a vast sphere of life as sports. In recent years, there have been numerous cases demonstrating that the sport industry and crypto assets can successfully coexist. Let's explore some of the most interesting cases!

What is the connection?

It's no secret that the sports business remains one of the most profitable and promising sectors. Sports clubs have massive audiences that, in turn, bring substantial revenues to the industry, and not just in fiat currency.

Sports organizations have been practicing the issuance of their own cryptocurrencies and NFTs on their platforms for several years now. Football leagues, hockey and basketball clubs, sports legends – all are gradually entering the space of crypto assets, attracting a new audience. The crypto industry only stands to benefit from this, as the more people get involved in decentralized crypto economics, the more stable it can become in the future.

The first appearance of sports tokens 

The first sports club to enter the cryptocurrency market was the French football club Paris Saint-Germain (PSG). On September 11, 2018, information appeared that PSG was launching its own tokens with the aim of expanding the fan base. Owners of these tokens will receive various privileges, including:

• participation in team polls and votes, 
• involvement in decision-making within the club, 
• participation in the club's loyalty program, 
• receiving rewards such as match tickets, official merchandise, digital badges, and more.

PSG tokens are not considered a means of payment. Interestingly, in 2021, Lionel Messi, upon transferring from Barcelona to PSG, signed a contract with the Parisian club to receive part of his salary in PSG fan tokens. The token's value experienced a noticeable and expected spike during that period.

Fan tokens: a success story

The PSG example made it clear that the sports audience, in general, is ready to embrace cryptocurrency in their lives. Following France, Italy entered the crypto market through Juventus, Barcelona through Barcelona, and Portugal through its national team.

The popularization of fan-focused cryptocurrency quickly gained an official name – fan tokens, oriented towards fans of sports teams or celebrities.

There are two types of fan tokens:

• Tokens that give their owners the opportunity to participate in the life of their favorite sports club. For example, PSG holders can participate in voting and choose the color and design of the new Paris Saint-Germain team jersey. By acquiring fan tokens of this type, fans become not just passive observers but more active and influential members of a community. They gain access to pre-sale match tickets, exclusive prize draws, and some intra-club voting.
• NFT Tokens. These are collectible coins, usually featuring images of sports legends, key players from teams, or important moments in games. If football fans used to collect Panini cards with images of their favorite players, today they collect similar themed NFTs. Due to the massive and expressive audience, the NFT market quickly filled with novelties related to sports and near-sports events.

Now let’s take a closer look at the NFT fan-tokens.

Most famous sports NFT collections

NBA Top Shot

A collection of video clips from the most exciting basketball matches was created by Dapper Labs with the support of the National Basketball Association (NBA). The project emerged in 2021 and quickly became successful, now being the largest marketplace for collectible sports NFTs.

There is also a collection for the Women's National Basketball Association (WNBA) called WNBA Top Shot, including moments from basketball stars like Diana Taurasi, Sue Bird, Candace Parker, and others.

MLB Champion

This project has existed since 2018 as an NFT platform with a blockchain game related to American baseball. Although the game ended in 2020, the trading of NFTs featuring images of champion figures continues. In 2022, an NFT image of MLB star Aaron Judge was sold for over $1,000.

DeRace NFT

DeRace is a platform for horse racing enthusiasts where you can purchase collectible NFTs featuring images of horses, with over 6,000 available. The marketplace collaborates with brands such as Animoca, Binance, and Chainlink.

Conclusion

In addition to sports clubs, global sports stars have launched their own crypto projects. Brazilian football legend Ronaldinho launched his token, Ronaldinho Soccer Coin, in 2018. Well-known American basketball player Spencer Dinwiddie released his own crypto coin to allow fans to interact with their idols."With this new crypto token, holders can pay for their fan club membership and receive personalized video greetings from Dallas Mavericks players.

Thus, the crypto industry and the sports world have something in common. The gradual digitization plays into the hands of both spaces, opening new prospects for earning and profitability.

The easiest way to buy, sell or exchange coins is to use SimpleSwap services.

If you want to learn more interesting facts about crypto then check out our blog! You might like our articles “Cryptocurrency In Sports” and “Extended Reality Explained”.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.