As the worst pandemic in human history constrains the growth of the sports ecosystem, the sports industry is rapidly embracing cryptocurrencies to keep clubs and fans connected in a socially distant world. The Covid-19 pandemic has forced sports teams to turn to cryptocurrencies and blockchain technology to boost revenue streams and improve the fan experience. Fan engagement and sponsorship have reached unimaginable heights in sports, even as clubs continue to look for innovative ways to get more fans through digital technology. Sports as an industry have recognised the potential that cryptocurrencies and blockchain technologies can offer to monetise fan participation further, attract sponsors and engage the global market in ways unimaginable decades ago.
Blockchain-based sports betting has catalysed the widespread adoption and use of cryptocurrencies and blockchains in sports and esports. Blockchain technology has benefited sports teams, making it easier for fans to buy tickets and merchandise. Cryptocurrencies have enabled fans to buy tickets and merchandise and clubs to pay player salaries and transfer fees. The sports betting industry has also seen what cryptocurrencies can do for fans as one of the payment options.
In addition to adopting cryptocurrencies as a payment method, there has also been an increase in fan tokens and sports cryptocurrency collectables in the sports industry. From simple payment methods for sporting events, the use of digital currencies has grown to fan tokens and NFTs. Another blockchain use case for the esports and sports industry is digital tickets through non-fungible passes (NFTs).
Sports as an industry have recognised that blockchain can revolutionise revenue streams and fan experiences by increasing sponsorship of cryptocurrencies, fan tokens, non-fungible tokens (“NFTs”), or even blockchain vendors entering the market. The implications of the proliferation include the acceptance of sponsorship deals between cryptocurrency companies and sports teams, the issuance of fan tokens, the sale of non-fungible tickets (NFTs), and the application of blockchain technologies in areas such as ticketing and marketing.
Sports teams and organisations are starting to use cryptocurrencies and digital tokens to provide fans access to exclusive content and programs using these new technologies as the world continues to go online. In recent years, cryptocurrencies and digital tokens have become powerful tools in all walks of life, and the sports world is no exception. Industries from all walks of life have succumbed to the popularity of cryptocurrencies.
The sports industry has taken notice of opportunities for fans to use cryptocurrencies when purchasing tickets for sporting events, such as the upcoming MLB World Series, which sell out in seconds. As blockchain becomes an increasingly popular investment method among high-profile athletes, it signals that digital currencies are taking over the sports world. One of the main areas in the sports market where cryptocurrencies have had a significant impact is gambling.