The global crypto-market has suffered a major shrinkage since its $3 trillion market cap last November with major names like Bitcoin and Ethereum trading at about half of their value. To insulate themselves from the plummeting prices, crypto companies began looking for new avenues to extend into, which is why they’ve been pushing into the sports industry.
Crypto companies have been successful and have managed to sign some of the biggest teams in sports like NHL’s Montreal Canadiens, NBA’s Miami Heat, and Portland Trail Blazers. But they didn’t just reach teams, they’ve also extended their influence to individual high-profile athletes who have been endorsing companies that are backed by crypto: Golden State Warriors guard Stephen Curry, and Tampa Bay Buccaneers quarterback Tom Brady, to name a few.
The goal of crypto in sports is to increase the level of fan engagement and transform them from being passive watchers to active fans. One of the major crypto companies that is moving fast throughout mainstream North America is Socios.
Socios has accomplished this growth through its core product called fan tokens which offers fans a chance to own the rights to engage and influence their favourite teams. Fans just need to install the Socios app onto their mobile device, purchase the in-app currency Chiliz Tokens ($CHZ), and use the Chiliz Tokens to the buy the fan tokens they want.
The fan can also immediately begin answering questions about the history of their team or about the season and the more a fan participates in such activities, the more reward points they earn and the more VIP surprises they get. Through the app, fans will also be able to enjoy special privileges that regular fans would not have access to. For example, fans of the New England Patriots football team could win prizes for answering questions correctly during a poll or for making accurate game predictions. Other benefits of owning this new type of crypto include access to chat rooms and forums of their favourite teams, as well as winning signed shirts.
Blockchain-based digital assets, like fan tokens, are the fastest-growing method for sponsorships in sports. The big crypto companies have realised that there is an extremely large potential in sports to grow a team’s visibility and market it as a brand through cryptocurrency. For this reason, companies are pouring in money into this relatively new industry and trying to develop a business model that can benefit fans and teams alike. In fact, major leagues have signed with crypto companies, like Major League Baseball (MLB) signed with FTX; Ultimate Fighting Championship (UFC) and even Formula One racing each signed sponsorships valued at $17.5 million and $20 million per year, respectively.
The visibility of crypto in sports looks like it is the next biggest thing in the digital asset class. Whether is it individual athletes, teams, or leagues, fan tokens are here to stay and their current success throughout the world is just beginning. We can already expect to see more sports sponsorships in virtually every game as crypto is moving fast into different areas, but with the same goals – to bring sports and fans together on a whole new level. With such an active fan engagement in cryptocurrency, it is easy to see why crypto companies are eager to tap into the sports industry.
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Michael is a cryptocurrency blogger who writes about the latest developments in blockchain technology. He has been blogging for over 4 years and his posts have been read by people from all around the world. His blog covers a wide range of topics, such as trading advice, new ICOs to invest in, and how blockchains can be used outside of cryptocurrencies. Michael also enjoys writing about more technical aspects of cryptocurrencies and blockchain technology.