Posted April 12, 2022, 12:48 PMUpdated on April 12, 2022 at 12:51 pm
What is an NFT?
The name NFT is an abbreviation of English ‘Non-Fungible Token’, French for ‘non-fungible token’, meaning it is unique and non-exchangeable. An NFT is a tamper-proof digital certificate of authenticity, whose ownership can be traced using blockchain technology. Specifically, it is a contract, whose rules are defined by computer code, based on a virtual or real object.
These rules may limit the number of copies available for sale, authorize re-editions, or organize a system of royalties (author’s rights) to remunerate the original author of a work at each transaction.
It is a new type of highly speculative digital asset, such as cryptocurrency, that uses blockchain technology, namely an authentication directory shared among many individuals without a central authority.
They are divided into collections. Owning an NFT allows you to belong to a community and sometimes access to physical events such as conferences, football matches or meetings with professional players.
Who are the actors of NFT in sports?
They mainly “Rights Holder, Club” And, sometimes, athletes who venture into this technology, explains Magali Tégens du Montsel, sports economist and general representative of Sporsora, an interprofessional organization working to develop sports economics.
With only sports “enough audience” started, such as football, rugby, basketball with the NBA, tennis or even cycling, with collectible cards that can be used in fantasy leagues or even “Moments Sports to achieve (Vault van Art’s victory in the Tour de France at the Mont Ventoux stage, the decisive basket for Stephen Curry, etc.).
Major players in this technology such as Sorare, a French footballer sticker exchange online gaming unicorn, valued at 3.7 billion euros, have emerged in the field of sports through these digital products.
Why is this technology interesting?
Makes it possible to create NFTs “an additional source of income” For these actors, while strengthening the relationship between a fan and an athlete or a club, analyzed Serena Williams’ coach Patrick Muratoglu and recently Simona Halep, who launched her collection ‘The Coach’, which connects 500 people. “Digital Assets” Real life experience $500 each.
They can indeed be resold on the secondary market and “Clubs can earn commissions” with each transaction “Commercializing Intellectual Property”Sauer’s deputy director Thibaut Predhomme explained, without disclosing the value of the amount.
This is also one “New Chance” One for the sports world “Crisis” Magali Tegenas du Montsel added that the economy is linked to the Covid-19 pandemic. “This virtual aspect (also) makes it possible to engage fans who are geographically distant from the club.”To strengthen these relationships or find new ones, he points out. “I became invincible in Japanese football”said Alexander Hourcade, Sorare player, who plans to buy a jersey from a J-League club after discovering the championship within a month of playing.
This link, Mouratoglou observes, is even stronger when NFT has a physical component like ‘The Coach’ collection where shoppers ‘partner’ and can attend. “At conferences, receive autographed items from players, have coaching sessions…”.
NFTs are finally used as a vector “renewal” The viewer base like tennis is where it’s at “Very old, so it’s important to find the young and these new technologies can open interesting doors.”he concluded.
Who buys these ‘sports’ NFTs?
Two types of demographics are interested in NFTs, explains Magali Tegenas du Montsel: collectors who are sports fans and speculators. “Those who have no passion for sports” But expect to realize a capital gain on resale. They are usually between 25 and 35 years old and are “predominantly male”. “Around the World” A certain purchasing power and a “Interest in this new technology”she says.
“I saw this when I saw the potential of making money while being a football fan”Testifies Alexander Hourcade, a 25-year-old computer engineer, who invested 800 euros in NFTs that are now worth 900 euros.
These most interesting digital assets often exceed several “hundreds of euros”Even if the Sorare Collection and NBA Top Shot sold for an average of under 100 euros last week, according to different market places.