Cryptocurrency Rising Into Popularity
Cryptocurrency gained traction following the introduction of Bitcoin in the year 2009. The continuous growth of the cryptocurrency market, plus the exciting fact that the digital asset can be bought and mined using sophisticated hardware, enticed mass attention. Cryptocurrency exchanges and platforms also transcend international borders because of their decentralised nature. This feature of cryptocurrency fueled its fame globally.
Cryptocurrency enthusiasts are looking at other industries that may soon adopt the evolving digital asset. Opportunities presented by cryptocurrency are no longer limited to investments and day trading. Financial institutions and international banks are adopting the blockchain technology of cryptocurrency as part of their digitisation. Big tech companies also announced their plans to integrate cryptocurrency as part of their payment systems. Companies and traders acknowledge the high-risk potential of cryptocurrency and other digital assets because of its market volatility. However, historical statistics of Bitcoin and other cryptocurrencies may offer substantial revenue and investment gains. The use of trusted exchange platforms, careful data analysis and rigorous trading methods is highly recommended.
Blockchain technology and promising revenue of digital assets are now reaching the world of sports through soccer. The football industry is looking into the crypto market ever since it rose to fame. Different sports franchises now realised the substantial potential to generate income and engaged soccer fans worldwide through cryptocurrency.
Football Industry’s Resilience Through the Pandemic
Numerous soccer teams are now implementing digital measures to bounce back from their losses caused by the global pandemic. Football franchises are launching digital coins that can be used to engage extensively with soccer fans.
Cryptocurrency exchange platforms offer transactions using football tokens to fans and also gained the attention of professional traders and investors. Consequently, football tokens’ price movement is also rapidly moving. Occasionally this is because of football match outcomes or sometimes just because of the hype trading of other non-football-fan investors.
Football merchandise in the form of crypto, through football tokens, is a significant hit. This became their way to support the football clubs and teams because of the no-audience policies during games. Ticket sales of top-20 revenue-generating teams dropped to 8.2 billion euros (12%) in the 2020 fiscal year. Thus, football tokens had helped the football industry to thrive and stay afloat amidst the global crisis.
The Football Teams
One of the biggest football clubs in the world, relating to market value, FC Barcelona, entered the scene of crypto, pre-pandemic. FC Barcelona launched their crypto token, $BAR, last February 2020. Having the largest fan bases in the football realm, they wanted to expand their digital presence and exceed international borders.
PSG and JUV tokens of the Paris Saint-Germain and Italian Juventus football clubs were launched last December 2020. And in just 24 hours of listing, both tokens surged from 80% to 160%. Sports analysts and experts associate these surges into the tokens privileges like match day tickets, digital badges and exclusive football experiences.
Italy’s AC Milan followed the venture of FC Barcelona in entering the crypto market. They launched their football fan token, ACM, last January 2021. The Italian team’s strategic move aims to optimise their digital presence and reach out to fans, despite the challenges of worldwide lockdowns. Manchester City, English Premier League champions, also launched their $CITY fan token last March 2021.
The most recent cryptocurrency venture is by Argentina. Just right after they kicked off with the Copa America campaign, which resulted in a draw, they launched their ARG football fan token. Argentina is the first national team to ever launch a football token. Argentina’s football token was immediately picked up by fans and sold out in just 30 seconds.
Spain’s national football team also announced its plan to unveil its football fan token by the mid-part of 2021. The national football team partnered with a Turkish blockchain company to support them in their crypto industry journey.
Crypto and Football
Football franchise owners explain that football tokens helped the engagement of football fans and clubs throughout the pandemic. It provides the fans with a whole new football experience despite the unfortunate circumstances that global lockdown gives.
The pioneer of football fan tokens is just the tip of the iceberg for the sports industry. In some sports, teams are already offering their players and staff salaries in digital currencies. Other sports are already accepting cryptocurrencies as a mode of payment for merchandise and tickets. Non-fungible tokens (NFTs) in basketball game highlights are already available for fans and investors to buy and trade.
Malta-based crypto-technology firm and other worldwide blockchain companies are partnering with different soccer clubs to widen the reach of crypto in football fan tokens. These crypto-technology companies are paying a fee to soccer clubs and share revenue from the initial sale of the tokens. Soccer clubs and crypto firms are now targeting a $200 million revenue for 2021.
At present, there are already 21 football tokens in the crypto market. Blockchain companies also launched crypto tokens representing other sports like motor racing and mixed martial arts. Reportedly, the market value of football tokens actively being sold and traded is capped at $260 million.