Sports betting is as old as human civilization. Tokenization in sports betting streamlines the process and enables players to interact with their fans.
The Greeks were known to love sports betting, more than seven centuries before the birth of Jesus when the Olympic Games were first held in 776 BC. Perhaps, tokenization of sports betting can rekindle some of the immediacies of such historical events.
Ancient Romans were the next civilization to wager in sports activities openly. They enjoyed gambling on the outcome of gladiatorial games. Studies show that sports betting in Rome was a lucrative industry, one that only started to decline in popularity as the Roman Empire itself begun to fall.
On March 25, 2014, the Dogecoin community successfully raised 67.8 million Dogecoins (approximately $55,000 at that time) to sponsor NASCAR driver Josh Wise. This marked the first instance of using a digital asset to sponsor a participant in a significant sporting activity. Although Wise did not win the race, Dogecoin (and crypto as a whole) hit the news headlines, generating a lot of interest in the crypto industry.
The sporting sector soon realized the potential of cryptocurrency tokens to facilitate transactions and build a thriving economy based on one of the favourite activities of people: watching sports.
What is a sports token?
A sports token is an asset that enables the holder to transact in a blockchain network. These transactions vary from buying a team jersey, betting on sporting activities’ outcome to having a stake in the transfer markets of players.
Apart from the economic aspect, tokenization in sports wagering provides another cool benefit: Fans’ ability to interact with their favourite teams, players, or sports figures. Sports token have a great appeal because the fans feel closer to sporting personalities or companies. By virtue of being a token holder, fans have a say in influencing outcomes.
Why should sports betting be tokenized?
Tokenization of sports betting lowers transition costs, brings transparency to the sports betting industry, enhances liquidity, decentralizes the sector, and increases efficiency. Tokenization alone is a highly versatile aspect that can be exploited to achieve multiple goals. The versatility arises from the fact that tokens are programmable; hence, they can be made unique.
For instance, tokens can be programmed to give holders access to exclusive content, custom merchandise, or even a stake in the voting. Whatever the voting is for (choosing the team’s new mascot, the colour, and design of a new season’s jersey, etc.) is irrelevant. The main idea is that token holders feel like they are part and parcel of the running of their favourite teams.
Therefore, the primary benefit of sports tokens is fan engagement. A tokenized solution provides a handy bridge to span the gap between fans, players, and clubs, creating an invaluable sense of community that leads to increased awareness and involvement. In other words, the user experience is greatly enhanced.
From football to NFL, NBA, and beyond: Sport tokens today
In early this year, FC Barcelona partnered with sports betting and entertainment fan engagement platform Chiliz to create a token that will enable fans to interact with the club more effectively. When launched in Q2 this year, the “Barca Fan Token” will give holders voting rights via the tokenized voting platform socio.com. The fans will also be rewarded with free Barca Tokens for engaging with the club and interacting with the socios.com and will be able to buy tokens via a process known as Fan Token Offering (FTOTM).
The Tokenizer blockchain banking investment platform is also striving to get a foothold in the US by targeting the famous National Football League (NFL). If these partnerships succeed, the possibilities for sports tokenization are endless.
Sports tokenization has come a long way, but in a way, the industry is on the verge of being a tidal wave of change. The onward march of tokenization platforms, such as Chiliz, Securitize, Polymath, and Tokenizer, illustrates how blockchain technology can disrupt and transform sporting activities.
Are you in need of raising funds or investing in security tokens? Apply to raise funds in Tokenizer by visiting our platform here. If you want to invest in security tokens, contact us by creating an account here. Lastly, if you’re going to liquidate and trade in security tokens, we have a decentralized exchange designed for you.