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Non-fungible tokens (NFT) offer great potential for the sports industry

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Non-fungible tokens (NFT) offer great potential for the sports industry

Visa has published a 17-page white paper on non-fungible tokens (NFT).
The company sees these opportunities in the emerging sector.

The payment service provider Visa has a whitepaper on the booming NFT topic released. The plastic card manufacturer sheds light on topics such as how NFT works, how to store it or what reasons there are to buy them. The company relates, among other things, to the sports industry. For fans, for example, non-fungible tokens open up completely new ways to support their favorite team. Because when it comes to Visa, NFT fans offer the opportunity to build a deeper and more dynamic connection to the sports team of their choice than was previously possible. The whitepaper points out that the Corona crisis has hit the sports industry hard – 18 billion US dollars in revenue have therefore been lost since the beginning of 2020. NFT technology could help financially. Because this could represent an opportunity for sports clubs to create entirely new sales opportunities.

The following use cases for sports clubs are also described in the white paper:

  • Customer relationship systems,
  • NFT art,
  • NFT-based computer games,
  • and a collection function.

The NBA Top Shot project, for example, offers such a collection function. When you think of traditional trading card games like Pokémon, the images on the card are always static. Thanks to NFT technology, NBA fans can now not only collect pictures, but also videos of special moments. On November 15, 2019, NBA Top Shots immortalized a dunk by LeBron James as NFT. It is currently trading for one million US dollars.

What are NFTs anyway? Cuy Sheffield, Head of Crypto at Visa, answers the question this way:

NFTs are a way of representing ownership of a digital asset such as an image, video, or text. Since the company was founded, there has been no way of claiming ownership of a digital asset on the Internet. Because most files can be copied, pasted and shared indefinitely. NFT are unique tokens that can be used to certify the origin, authenticity and ownership of a digital medium.

Visa engagement in the crypto sector is growing

Visa is one of the largest companies in the world with a market capitalization of $ 500 billion. The payment services giant from the United States has taken more and more steps lately to break into the crypto world. Because not only is Visa issuing more and more crypto payment cards in even more countries. In addition, the company offers an increasing number of people worldwide the opportunity to pay with crypto currencies. The US company has kept itself up to date with the current trend. So recently the positive news for NFT fans went around the world that Visa had acquired a “crypto punk”.

NFT by Leonardo da Vinci and Van Gogh in Binance

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