Cryptocurrency and NFTs have been the name of the game for the last few years. Individuals and firms, including the Premier League, are sudd...
Cryptocurrency and NFTs have been the name of the game for the last few years. Individuals and firms, including the Premier League, are suddenly more associated with these alternative forms of finance. Like Premier League predictions, NFTs and cryptocurrencies are everywhere, including schools, airlines, and even private firms.
Now we know the widespread craze for crypto and NFTs. But you might not know that soccer clubs now amass crypto and Premier League dances with the thought of launching NFTs.
Read on as we discuss the budding relationship between cryptocurrency and the Premier League:
What is Cryptocurrency?
Cryptocurrency is a decentralized payment system that doesn't depend on any bodies like the government or banks. It utilizes a peer-to-peer system that doesn't require banks to verify its transactions. Rather than physical cash that we carry sound and exchange in real-time, crypto-only exists as digital entries in an online database called a blockchain.
When you make crypto transactions, they register into a public ledger, and you can store it in digital wallets.
Who has the Crypto?
Recent research found that most of last year's premier league clubs had at least one crypto sponsor at any level. For instance, Man City may net over $20 million a season after expanding an existing partnership with crypto exchange OKX.
The deal saw OKX become the club's official training kit partner for the 2022-2023 season, which began in August 2022. Also, the contract may feature select Man City players in crypto-educative content produced by OKX. Premier League picks utilize these stats to help bettors make more accurate decisions.
Soccer giants Chelsea also signed a staggering £20m-per-year with WhaleFin, a renowned crypto outfit. The deal placed WhaleFin as the club's sleeve sponsor; as a blockchain platform, Socios penned deals with six Premier League clubs.
What is an NFT Drop?
An NFT drop is a feature that allows creators to announce the release of their newest collection. It will enable fans to prepare ahead for the NFT and get notifications when it is available for purchase or minting. NFT drops often coincide with their minting, that is, when they enter the blockchain.
What Teams have done NFTs?
In September 2021, Man City released two NFTs. According to reports, the first marked another Premier League title, and the second was coined "Creation."
The Reds, or Liverpool, also dropped an NFT scheme in March 2022, offering caricature artworks of the team and coach. Leeds then launched the NFT to raise money to aid the disaster in Ukraine. Even former Chelsea Captain John Terry swears bt NFTs, as he founded "Ape Kids Football Club."
Premier Teams aren't the only ones in allegiance with crypto and NFTs, as Pari Saint-Germain has a fan token called $PSG. Sometime in 2022, it was valued at £5.19 each, and a total value of £16.1 million; at that time, $PSG was the 597th most popular cryptocurrency.
What are Fan Tokens?
Fan tokens are unique cryptocurrency that gives its holder access to several fan-related activities. These activities may include voting in the club's decisions, team bus designs, and special match discounts.
How Volatile Are They?
Owing to the clubs' fame and money, not many people are concerned about risks, and it is generally deemed a low-risk venture. However, there's some debate about the responsibility from the perspective of pushing the venture to fans.
Are Clubs Making Money From Crypto and NFTs?
Like Premier League predictions today, Soccer clubs definitely did their homework before undertaking these investments, as they reel lots of money in. For instance, Chelsea's merch deal with WhaleFin should generate £20 million a year. It is one of many profitable club partnerships.
Who else is Dabbling in Crypto?
Players aren't just watching from the sidelines, as former Arsenal footballer Kieran Gibbs collected half his salary in Bitcoin. CEO of Capital Sports Media, Timothy Mangnall, rightfully told AltFi "Crypto isn't going anywhere, and sports and crypto are a match made in heaven."
