Cryptocurrencies have already changed the industry of sports events and gambling on sports. They’ve also had a profound impact on fan engagement and the way fans interact with each other and with the team.
This article will explore an interesting relationship between cryptocurrencies and sports merchandising and collectibles. Both are changed by the use of blockchain, which can be used to represent ownership over these assets. At the same time, the technology can be used to provide communal and fractional ownership, creating a stronger and more complex bond between the fans.
Global Accessibility
The first thing that has changed is that the fan communities are now truly global. Players interested in gambling on a sports event or simply following it can be based in Singapore, while the team is from Scotland, and they’ll still share the same fan experience, regardless.
This is true for live events, as well as pre-and post-game dissuasion that always arises around sports events, as well as the ability to buy merchandise and share memorabilia. With a global audience, many niche sports and small teams have found huge following.
New Ways of Fan Engagement
Fans can engage with the team and the game in new ways by using crypto tokens. These tokens can be memorabilia of the game itself, and they can be a key that allows access to unique and special events. It fosters a sense of community among those who have them.
Blockchain provides a way for fans to have immutable records of their ownership as well as to automate the features that are tied to the terms of such contracts. At the same time, ownership over blockchain tokens can be shared among thousands of fans.
Verification
The immutable nature of blockchain records makes it a good tool for verifying identity and ownership. Once the transaction has been completed via blockchain, there’s no way to reverse it, and there will always be a record of it. This prevents unwanted transactions, but sports merchandising can have numerous other purposes.
Tokens can be used to gain access to games, tournaments, or special events; they can also be used to sign the fans up for rewards and special features. An interesting thing about using tokens is that it relieves the fans of having to provide their real name or government-issued IDs, but it also provides an easy way to verify their identity.
Tokenization of Assets
Blockchain tokens are also used to tokenize asset ownership. This means that the ownership over memorabilia can be tokenized and shared among the fans so that each fan gets a proportion of ownership they are entitled to. That way, a large group of fans can jointly own a piece of memorabilia, such as a unique video or a photo from a match or a game.
In some cases, the same can also be done with the ownership over a team itself. Some small clubs in niche and local leagues have already done it. Effectively, it allows the fans to own the team they are rooting for communally.
Exclusive Rewards
Cryptocurrencies allow fans to get exclusive rewards as a way to promote team loyalty and fan participation. The rewards can be anything from tickets and access to events to digital and physical memorabilia authorized by the team or the league.
Access to meet and greets, special events, or any of the other rewards we’ve mentioned can be written into the blockchain code. Therefore, the reward becomes available to the fans as soon as its terms are met. Sometimes, those terms can be set to reward loyalty in terms of time spent with the fan base, or they can cover the whole fan base.
Eliminating Barriers
Using cryptocurrencies to pay for merchandise or collectibles eliminates any barriers that may exist between fans. Some countries don’t allow their citizens to gamble at sports events, and some don’t even allow anyone to watch them.
There are also boundaries that arise when fans don’t have access to a particular payment method, such as a bank, card, or digital wallet. The use of cryptocurrencies eliminates all of these as they don’t require any centralized structure.
Transparency
There are two main goals for teams and leagues offering sports memorabilia: the purchases need to allow the fans to make payments without providing personal data, and they also need to be transparent about how the funds are used. Blockchain technology provides transparent and immutable records of transactions, allowing fans to trace the ownership history and authenticity of sports memorabilia, thus enhancing trust in the market. It’s an especially important feature when it comes to sports memorabilia since its authenticity makes it valuable. The NBA has already started a huge fan-inspired operation of creating digital memorabilia as a part of the post-game analysis, and it has worked great.
Emergence of Niche Markets
Since the technology we mentioned doesn’t require a complex and centralized infrastructure, it can be used by the smallest of teams and the smallest of leagues. This will lead to the emergence of new niche markets that are small in numbers but have great fan engagement.
Being a part of a small group of fans that is closely knit and shares the love and enthusiasm for the team can be more rewarding than following a large team. This has already led to an increased interest in small events and new sports.
Reduced Cost
Making all the fan-related payments with cryptocurrencies reduces the costs for everyone related. There are fewer fees, and the fees are less costly because there are no intermediaries between the users and the teams. With traditional financial tools, the fans will have to cover the costs related to banks, cards, and digital wallets.
This is an especially important feature when it comes to paying memorabilia for small teams and small sports events. These have a smaller fan base and, therefore, can appreciate any reduction in cost since the fees are always higher on small transactions.
Innovative Marketing Strategies
The use of cryptocurrencies is just a tool that can help marketing teams employ innovative marketing efforts. Teams can create collectible items that are limited editions and, therefore, create demand on their own. They can also provide interactive fan experiences for those who possess the memorabilia. These can also take advantage of virtual and augmented reality technologies and, therefore, be available to anyone.
It’s also possible to bundle physical sports merchandise with exclusive digital collectibles or experiences accessible through blockchain technology. For example, a fan purchasing a team jersey could receive a digital collectible card, as well.
Conclusion
Cryptocurrencies are widely used in the sports industry as a payment method, but they can also play a big role in sports merchandising and collecting memorabilia. Some efforts have already
been made in this regard, and they have proven to be a great success with fans. Memorabilia and collecting allow fans to bond over their team and to feel as if they are a part of it.
The use of cryptocurrencies and blockchain will make transactions with this purpose immutable, less costly, and transparent when it comes to ownership. They also allow for innovative marketing practices that can be combined with other, more traditional ones. In the end, this method of promotion is uniquely suited to small teams and communities.