Cryptocurrencies are quickly becoming a part of everyday life. As such, it’s no surprise that cryptocurrencies are gaining a foothold in the sports industry.
From March Madness odds to statistical analysis, cryptocurrencies provide cutting-edge technology with every sport can utilize to improve the fan experience and engagement.
So, it’s worth looking closely at the uses of cryptocurrencies in the sports industry.
Uses of Cryptocurrencies in the Sports Industry
Crypto is being increasingly used in the sports industry in a number of ways. The following list underscores how cryptocurrencies are used in sports:
Ticketing
Many sports teams and organizations are using blockchain technology to sell tickets to their events. Blockchain-based ticketing systems can help prevent fraud, reduce counterfeiting, and increase transparency around ticket sales.
Merchandise
Some sports teams and organizations are also using blockchain technology to sell merchandise. Blockchain-based systems can help ensure that merchandise is authentic and can help track the ownership history of individual items.
Fan engagement
Some sports teams are using cryptocurrencies to incentivize fan engagement. For example, some teams have created tokens that fans can earn by attending games or participating in social media campaigns. These tokens can then be redeemed for merchandise, tickets, or other rewards.
Player payments
Some professional athletes are being paid in cryptocurrencies, either as part of their regular salary or as bonuses for performance. This is particularly common in individual sports such as MMA and boxing.
Sports betting
Cryptocurrencies are being increasingly used in the sports betting industry as well. Some online sportsbooks accept cryptocurrencies as payment, and some are even creating their own tokens that can be used to place bets.
Examples of Cryptocurrencies in the Sports Industry
The following are key examples of how crypto is being used in the sports industry:
NBA Top Shot
NBA Top Shot is a blockchain-based platform that allows fans to buy, sell, and trade digital collectibles featuring NBA highlights.
Each highlight is sold as a non-fungible token (NFT), which is a unique digital asset that is verified on the blockchain. The platform has been incredibly popular, with some NFTs selling for millions of dollars.
Socios.com
Socios.com is a blockchain-based platform that allows fans to buy, sell, and trade tokens for their favorite sports teams. These tokens give fans access to exclusive content, rewards, and experiences, such as VIP tickets, meet-and-greets with players, and more.
UFC and Litecoin
In 2018, the Ultimate Fighting Championship (UFC) announced a partnership with Litecoin, a popular cryptocurrency. The partnership allowed fans to purchase UFC merchandise with Litecoin, and the UFC even gave away free Litecoin to fans during a major event.
Sacramento Kings
The Sacramento Kings, an NBA team, were one of the first professional sports teams to accept Bitcoin as payment for tickets and merchandise. The team also created a mining program that allowed fans to use the processing power of their computers to mine cryptocurrencies.
Southampton FC
Southampton FC, an English Premier League soccer team, partnered with blockchain-based platform Socios.com to create their own fan token.
token gives fans access to exclusive content and experiences and can be used to vote on team decisions, such as the design of the team’s jersey.
The Future of Cryptocurrencies in the Sports Betting Industry
The future of crypto in the sports industry is very promising. Here are some potential developments to expect in the coming years:
More Teams and Organizations Accepting Cryptocurrencies
As cryptocurrencies become more widely accepted and understood, sports fans can expect more sports teams and organizations to accept cryptocurrencies as payment for tickets, merchandise, and other items.
Increased Use of NFTs
NFTs have already become incredibly popular in the sports industry, but fans can expect to see even more innovative use cases in the future.
For example, fans can expect to see teams and organizations create unique NFTs for each game or use NFTs to represent ownership stakes in a team or athlete.
Crypto-Based Fan Engagement Programs
Fans may see more sports teams and organizations create their own fan tokens or other crypto-based fan engagement programs. These programs can incentivize fan engagement and reward fans for their loyalty.