Nowadays, professional sport teams are actively issuing NFTs and tokens (crypto assets). Why is "Sports x Web 3.0" attracting attention now? We will consider its possibilities and challenges.
A: Today, I would like to talk about the efforts of the sports industry in Web 3.0. Web 3.0 is a term that is widely used to refer to various blockchain-based technologies and mechanisms.
Specifically, digital assets such as tokens (also known as crypto assets, strictly speaking, fungible tokens) and NFTs are examples of this. In the sports industry, teams have been issuing tokens and NFTs more and more in recent years.
B: That's right. For example, among soccer teams, FC Ryukyu, a member of the J3 League, made headlines when it sold FCR coins and raised a total of 1 billion yen, and Sagan Tosu has also issued NFTs for fans. In addition, many teams in various professional sports, both domestic and international, are selling tokens and NFTs.
However, I don't know much about Web 3.0, so I don't really understand why something called Web 3.0 is becoming so popular in the sports industry. This may be a very rude thing to say, but I even feel that sports are being caught up in tokens and NFTs, which somehow have a "smell of money".
A: I understand why people have such concerns, and it is true that NFTs and tokens are very useful in terms of money, or in other words, monetization. However, the combination of sports and Web 3.0 is considered to be a very good match in every sense, including that aspect.
B: What do you mean?
A: Sports are "content," have "fan passion," and have a "fan and team community." Moreover, these are not temporary, but continue for a long time. These keywords have a very high affinity with NFTs and tokens.
What is the difference between NFTs and tokens?
B: I know it's a little late to ask, but what is the difference between NFTs and tokens?
A: Tokens have characteristics similar to currency, and are called "fungible tokens" in the Web 3.0 industry. In short, they are crypto assets, and like currency, there are no differences between them, and they all represent the same value. For example, 1 FCR coin has the same value as another 1 FCR coin at any time and can be exchanged.
On the other hand, NFTs are called "non-fungible tokens" and have the characteristic that each one is unique, like a physical work of art. If we give a similar example in the sports industry, it would be something that cannot be replaced with another, such as a "fan club membership card with a membership number" or a "uniform signed by a player."
B: I see. What are the benefits of bringing them into the sports industry?
A: First, let's take NFTs as an example. NFTs are a technology that started to become popular around 2021, and initially NFT art, that is, digital images turned into NFTs, became very popular and spread. Before that, digital images could be copied infinitely by anyone, so there was no "sole owner."
However, with the birth of NFT technology, the value of "owning" digital images, like owning a painting by Monet or Van Gogh, spread. However, while NFT digital art was born one after another, the boom gradually passed and the price of many NFTs plummeted.
B: Why is that?
A: It's a very simple reason, but the question arose: "Do I want to own that digital art in the first place?" There are many people who want to own works by famous painters like Monet and Van Gogh, but few people see value in images painted by people they don't even know.
Therefore, the NFT industry began to place importance on the concept of "utility," which means practicality. What benefits will you get if you own that NFT? How can you use it? Why do people want to buy that NFT? We are looking for answers to these questions.
I think sports will be one of the answers.
B: What do you mean?
A: In fact, the pioneer of the digital art-centered NFT boom was the digital card game "NBA Top Shot" by the NBA (American professional basketball league). The project sold players' highlight videos called "Moments" as digital NFT cards, and more than $200 million was traded in the three months after its release.
Earlier, I asked the question, "Why do people want to buy NFTs?" If it's a video of an NBA player, the reason is obvious. For fans, it must be a great joy to be able to own their favorite player's best play as "their own".
Compared to digital images that have no use, there is a reason to pay money to get it. Also, people who have limited items such as "limited edition uniforms signed by players" are respected by fans and players, right?
B: For players, it's "the person who bought that," and it's an object of respect for fellow fans.
A: It's easy to understand if you think of NFTs as something similar that can be achieved with digital content. You say that NFTs make it possible digitally to achieve things that could only be achieved with physical objects until now.
Unlike physical objects, NFTs are not subject to physical restrictions such as transportation, and they have the advantage of being easily sold and traded with other people.
