Both pertinent sectors, the crypto and sports industries may seem to be dissimilar from the surface. However, as cryptocurrency becomes more popular and seeks to expand its reach in aims of going completely mainstream, these two markets have positioned themselves to converge.
Sports has recognized the potential that cryptocurrencies and blockchain technologies hold to further monetize fan engagement, attract sponsors, and engage a global market in ways that were unimaginable decades ago. This has led to projects with some of crypto's biggest players, ultimately resulting in a plethora of partnerships that have been announced this year alone.
According to supporters of these efforts, blockchain is able to revolutionize sports revenue streams and fan experience with the integration of increased crypto-sponsorships, fan tokens, and even with the introduction of blockchain providers into the market. This is something that's seen as beneficial to the sports industry for its potential returns, as well as promising to crypto companies looking to expand their reach.
If the cryptocurrency sector wants togo mainstream, it knows it must appeal to a larger audience.
This is possibly the reason why cryptocurrency companies are increasingly signing lucrative sports agreements, ranging from stadium naming rights to athlete and apparel partnerships.Sponsorships have resulted in a greater understanding of cryptocurrencies among consumers and investors alike, and the sports industry in particular seems to be an ideal market from which crypto companies can source effectively.
Cryptocurrency companies are investing huge sums of money into sports marketing efforts, ranging from in-stadium billboards to commercials featuring some of the world's most well-known athletes and actors.
In an effort to attract new consumers, several crypto exchanges, including FTX and Crypto.com, have invested hundreds of millions of dollars in sports-related business endeavours.
The naming rights to the StaplesCenter, which is home to the Los Angeles Lakers and Los Angeles Clippers of the National Basketball Association and the Los Angeles Kings of the NationalHockey League, were recently purchased by Crypto.com.
In another recent deal, FTX bought the naming rights to esports giant TSM for $210 million, making it the biggest esports sponsorship ever. The multiyear agreement renamed the organization TSMFTX.
One of the faster growing coins,GameCoin, has also made a huge push to work with college athletes as part of its break in to the sector. GameCoin is a new and innovative BSC token that's dedicated to supporting youth, collegiate, and professional sports. Athletes will be able to use the platform to document their progress, post highlights, and track their training regimen. Investors will be able to speculate on the athletes, with their value increasing or decreasing depending on how well they perform. They recently did a national Tiktok campaign working with over 20student athletes.