Written by 2021 has been the year of cryptocurrency. Millions have taken the plunge into the unknown, purchasing digital assets as if, suddenly, the mystery and uncertainty surrounding the blockchain has gone up in smoke. Digital assets have taken center stage and investors, athletes, and sports fans are taking notice. The popular demand for sports memorabilia, in the form of non-fungible tokens (NFTs), is the most interesting sports-related phenomenon occurring on the blockchain. NFTs are redefining the way sports fans interact with paraphernalia and sports entities produce collectible items.
NFTs have expanded the realm of fandom providing fans with a unique digital asset that can do more than sit on a shelf. On a rudimentary level, NFTs are few lines of code stored on a digital ledger or blockchain. They don’t sound exciting, I’m aware, but what makes them cool, and revolutionary is that they can be more than still images. NFTs are creative works that can take the form of digital artwork, sound bites, or highlights. An NFT can be anything from an MLB trading card to a short clip of your favorite NFL receiver catching a pass for a game-winning touchdown. They are emerging as a fun and interactive way for passionate sports fans to grow their sports paraphernalia, allowing them to capture and commodify moments in time in unprecedented ways.
As the craze for NFTs intensifies, passion-based investing is reaching a new height in the digital landscape. Trading cards have long been the collectible of choice for the invested sports fan, with card sales topping 5 million dollars still in 2021. The turnover rate is high, with most opting to purchase high-value cards, hold them for a year or two, and resell at a steeper price. The real value here will be for traders banking on the success of rising stars. The NFT market is still growing and those who can accurately predict the success of young stars will reap the benefits. For example, getting your hands on a clip of Zion Williamson’s first dunk could pay dividends in a few years when NFTs become a preferred form of trade for collectibles.
NFTs are also advancing esports betting, adding a new layer of competitiveness and personal investment for sports fans. I read a story about a popular blockchain-based game, ZED, which utilizes NFTs for virtual horse racing. Players can purchase or mint distinct horses to race against other players for cryptocurrency. If you are a fan of traditional horsing racing and betting you will thoroughly enjoy this game. With ZED players can indulge in horse racing like never before. NFTs have introduced a new level of control for the sports better who now not only can place the bet but also direct the horse’s growth and development. NFTs have created an immersive experience for the forward-thinking sports fan.
Forward-thinking sports businesses are also looking to capitalize on the emerging trend. NFT’s are sparking all kinds of innovative pieces of merchandise from traditional sports memorabilia sellers and entrepreneurs. NBA Top Shot, a blockchain-based trading card system is a perfect example of this. As of 2021, NBA Top Shot has grossed $230 million in sales from NBA highlights and digital artwork. Other more seasoned sports collectible sellers are also looking to ride the NFT wave. Recently Topps announced an initial public offering with the intent to manufacture NFTs under a newly established SPAC. Athletes are also gearing up to get into the game. Tom Brady is set to launch a venture in the near future dedicated to producing sports-related NFTS. There is no shortage of athletes, entrepreneurs, and sports memorabilia powerhouses looking to break into the space.
NFTs offer an unexplored paradigm of creativity and story-telling that could serve to reinvigorate classic brands that we all know and love. They introduce a new feel to an old hobby, inviting fans to consider a new engaging way to interact with their favorite sports, teams, and athletes. I am excited about the new frontier of sports collectibles and paraphernalia.