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NFT classification and development
Since the emergence of NFT, it has formed a complete plank road, and the use cases of the application layer have been covered more and more widely. At present, it has mainly developed 6 categories, including art, collectibles, virtual reality, games, practical products and sports.
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Frenzied anticipation for 2021s big year in sports
The combination of art and technology has been going on, and NFT is just a way to continue this trend. The combination of NFT and collectibles or artworks has seen many relatively mature projects. On the other hand, sports events and fanaticism hint With the unlimited potential in the sports field, people in the sports industry have seized this trend and stepped into the NFT field one after another. Since the emergence of sports NFT projects in 2018, there have been sales of more than 85 million US dollars, 480,000 sales, and 18 million active wallets.
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Data source: NonFungible
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2021 Sporting Events Calendar
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NFT+ sports classification and representative projects
In the project combining NFT+sports, there are two categories.
One is the combination of NFT and sports IP, including sports track IP and sports game IP. Among the sports track types, the number of projects involving football is the largest, and those involving other sports types are relatively scattered. Representative ones are SoRare, NBA Top Shot, REVV, and ZED Run. Among the sports game IPs, the representative one is the game Fantasy Sports (Fantasy Sports), and the projects involved include the on-chain game platform Rage.Fan and the decentralized sports trading platform TradeStars.
The second is some NFT sports comprehensive application platform projects, including Chiliz, which reshape the sports fan economy, OpusBeat, a sports auction platform, SportsIcon, a collection platform for sports players, and Blocksport, an app service platform for e-sports sports clubs.
The NFT sports collectible project has occupied an important seat in the entire NFT collectible category. As of the beginning of July, NBA Top Shot sales ranked first, with a total of more than 600 million U.S. dollars. It will reach its peak in February and March 2021, with sales of more than 200 million U.S. dollars each, with a maximum sales of 45.77 million U.S. dollars a day.
NBA Top Shot and CryptoKitties, the first NFT project out of the circle, belong to the same founding team Dapper Labs, and the project belongs to the Flow public chain, which once had an increase of 3000%, and has extremely rich successful experience in operation.
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Data source: cryptoslam
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NFT+ sports strong IP fan economy
At present, the fan economy has become the code of wealth. Fans with super purchasing power pay to support idols. This is not only the norm in the fan circle, but also in the sports world. NBA Top Shot is a representative product of NFT that makes full use of the fan economy, as well as SoRare and Chiliz.
The essence of NFT+ sports IP is actually an ownership economy. What good is a virtual intangible collectible? The joy of ownership is more important to fans than the tactile satisfaction. For example, NBA Top Shot is a collection of small videos of basketball stars highlight moments. These moments are officially authorized by the NBA and created in limited quantities on the blockchain, for which fans are willing to pay thousands of dollars. Once an athlete becomes popular in the game or his career ends, these NFTs will immediately appreciate in value, so fans think that the NFTs they buy are still undervalued. When the assets have a sufficient premium, fans pay more attention to them than they like.
The upgrading of purchasing power of young consumer groups reflects the needs behind their consumption. For example, the explosion of blind boxes is a kind of IP consumption identity, and they need to express freely through the virtual world, which means losing their identity. They like personalized customization. It is a kind of flaunting a unique cultural identity, and because of the hobby of diversity, it pursues cross-border joint names. The combination of NFT+sports happens to be a strong IP, which is virtual enough, unique enough to be rare and novel, and enough cross-border and diverse.
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Highlights of NBA Top Shot players
As can be seen in the figure below, among all the collections so far, the collection with the highest sales is NBA Top Shot, which is as high as 6.89 million U.S. dollars. Sorare, which is also combined with the fan economy, sold 460,000 U.S. dollars, ranking fourth.
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Use value and application scenarios of NFT+ sports items
There are several ways in which various sports clubs and leagues can be combined with blockchain NFT. In practical applications, several ways may be used at the same time.
1. Issue NFT by yourself. The NFT issued by most teams is the player card on Sorare. There are also many clubs and e-sports teams that issue NFT on Socios.com.
2. Issuing fan tokens. Socios.com is currently the platform that issues the most fan tokens (Socios.com is the first tokenized voting platform on the market, launched by Chiliz). Fans need to purchase CHZ tokens before exchanging fans. certificate. For example, top football club AC Milan has established a partnership with Chilliz and launched the fan token ACM on Socios.
3. Sponsorship and endorsement. Blockchain companies use cryptocurrencies to sponsor teams. Of course, this method may not involve NFT assets.
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Football Fan Token on socios.com
NFT+ sports application scenarios are gradually developing and currently include:
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NFT+ sports infrastructure and economic model
Some people believe that, in essence, NFT is a protocol layer or middleware that sits between the application layer and the infrastructure layer. The infrastructure that can be used by NFT is very limited, mainly relying on ERC721 and ERC1155 and some modified versions, which can meet the basic needs, but some slightly complex compound or interactive application requirements, there is still a lack of such universal types on the market agreement is met. Therefore, in the field of NFT+ sports, most project applications are still in the state of simple graphic display and simple games.
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Will the future rejuvenate
The NFT surge in the first quarter of 2021 is very strong, but there are many bubbles in it. In the long run, the development of the NFT sector still needs to return to rationality. This is an inevitable trend as can be seen from the obvious decline in the data in the second quarter. There are still few application scenarios for NFT+ sports, and the IP economy has low requirements for technical thresholds and barriers, which is prone to overvaluation. Even in the NFT sector, NFT+ sports is still in a relatively early stage of development, but it has unlimited potential, which is beyond doubt.
The value of NFT is a combination of intrinsic value + use value + premium. At present, the premium is getting smaller. If the technology matures and breaks through, the financial attributes and derivative attributes to be undertaken will become richer, and it is hoped to build its own moat. The combination will not form too much foam. Because now more and more clubs, teams, and stars are beginning to join this encryption game and issue their own NFT. This is a sizeable market. If you can make bullets fly for a while, the market will prosper. NFT assets Out of the circle, is the rejuvenation still far away?
