What is the future of Non Fungible Tokens linked to sporting highlights?
Non-Fungible Tokens (NFTs) have made headlines in recent months due to the crash-and-burn of the cryptocurrency (fungible token) markets. Creators of digital collectibles have responded to the crash of confidence in fungible tokens by creating new assets linked to cartoons, videos, sports highlights and songs; all with ambition to sell real-world products and create entertainment franchises.
What are NFT’s? Wikipedia: A non-fungible token (NFT) is a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership. The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded. NFTs can be created by anybody, and require few or no coding skills to create. NFTs typically contain references to digital files such as photos, videos, and audio. Because NFTs are uniquely identifiable assets, they differ from cryptocurrencies, which are fungible.
One of the most prevalent NFT types to arise in recent months is those connected to sporting highlights; often created by professional teams or influencers. These Sports NFTs typically contain a clip or highlight, or artwork as their referenced digital file; they have a value based on the speculation of how interesting and engaging they will be in the digital ‘metaverse’.
With Sports NFTs growing in number and value, more brands and teams are innovating new ways to create the unique digital assets in the hope that their property will become the next one to skyrocket in value.
This new development brings a strange new potential income stream to sponsored teams and athletes; with their ‘product’ gaining a speculative value based on future possible engagement, rather than real-life real-time engagement.
Here at Molokai Group we are investing time and resources into understanding the scope and potential of this intriguing concept: could this become a key new investment and income stream for sportspeople?