Opinion by: Alexandre Dreyfus, CEO of Chiliz
Blockchain has reshaped every sector that has worked to implement the technology, from financial services to entertainment. This revolution is evident in how sports fans can now engage with their favorite teams, offering dynamic and direct interaction through fantasy sports games, digital membership and sports memorabilia digital ownership, transforming passive viewers into active participants.
While NFTs have experienced significant volatility since their inception, Fan Tokens have moved from strength to strength, going beyond their Web2 counterparts and providing fans with a truly engaging experience as part of their ownership.
Data from CoinMarketCap showed Fan Token trading volume surpassing $1 billion in just 24 hours, highlighting a robust secondary market and the ever-growing enthusiasm and presence of crypto-savvy sports fans.
Breaking down barriers
One of blockchain’s most significant benefits is its ability to transcend geographical boundaries. Traditionally, fans’ participation in their team has been limited to passive and local consumption. Blockchain shatters this barrier by enabling fans from around the globe to participate actively in team activities and decisions. Therein, it creates a sense of global community, particularly beneficial for fans living in regions where their favorite teams may not be widely followed.
Fans are keenly following teams abroad, even in the United Kingdom and Italy, nations with homegrown clubs. Tottenham Hotspur, for instance, enjoys significant popularity among South Koreans. With blockchain, a fan from any part of the world can now actively participate in the decision-making processes of a European football club, bridging physical distance with digital connection.
The psychological effects
A 2022 study called “The Psychology of Fan Engagement” found that 63% of sports fans say their emotional connection with players and teams enhances their overall sports experience. Globally, 83% of fans feel that their team could do more to engage with them, and 24% of these fans demand loyalty programs and rewards. Blockchain deepens emotional connections by making fans feel more invested and involved, cultivating a more passionate and loyal fan base.
Recent: FIFA, Mythical Games collaborate to launch blockchain game FIFA Rivals
A new era of fan engagement
Fans are demanding greater interactivity with their sports franchises. When asked about future sports consumption, 67% of fans expect it to be more interactive, 57% said it is easier to access, and 54% said it should be more immersive than it is today. The same studies show that 61% of Gen Z sports fans create their own ideal experience at home with their friends and family, indicating that communal experiences and socialization are also fundamental aspects of entertainment experiences for Gen Z.
Gone are the days of passive fandom. Fan Tokens, secured by blockchain, empower fans to actively participate in team decisions, like voting on team shirts or matchday experiences. Beyond voting, platforms offer innovative ways for fans to engage with teams and players. Clubs like AC Milan and Real Sociedad give fans the ultimate game-day experience, such as announcing the lineup at home matches.
Atlético Madrid and AS Monaco allow fans to be in official team photos, quite literally becoming part of the team. These unique opportunities go beyond fan polls, deepening engagement and connection with favorite teams.
A new era of sports memorabilia
Blockchain has changed the hobby of collecting digital and physical sports memorabilia. Tokens and collectibles tied to iconic moments, players, or events represent a new era of sports memorabilia. Blockchain authentication makes these assets verifiable and tradeable, allowing fans to own a piece of sports history.
For example, fans could get their hands on the football Romelu Lukaku used to score his first goal in the Laga Series A season. South Korea’s K League introduced blockchain-based collectible cards featuring players and teams. These cards can be traded on secondary marketplaces, offering fans a unique way to engage with the sport and potentially generate returns.
Research suggests the blockchain sports market will have grown at a compound annual growth rate (CAGR) of 9% by 2028, indicating strong growth potential. There is strong growth in blockchain-based sports applications and a bright future for digital ownership in the sports industry.
Blockchain’s mainstream utility
Leading sports brands like Paris Saint-Germain, FC Barcelona and Formula 1 are at the forefront of adopting blockchain technology. Creating an ecosystem where every club supports blockchain is highly advantageous. While clubs may compete on the pitch, they must collaborate to enhance fan investment. Like social media platforms, a network effect can be fostered within Web3, allowing clubs and fans to engage in a shared space.
Web3 enables clubs to own relationships with their fans. Using this unique aspect to their advantage, clubs can deliver tailored experiences that resonate deeply with their fanbase. Greater fan engagement, borderless participation and digital ownership create a more inclusive and interactive environment for fans worldwide. As more sports brands embrace blockchain, its mainstream adoption will accelerate, solidifying its position as a foundational element of the global sports industry.
Alexandre Dreyfus, CEO of Chiliz, is a digital entrepreneur with 30 years of experience across the gaming, sports and entertainment industries. Alexandre founded Chiliz in 2018, securing blockchain-based fan engagement partnerships across the globe.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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