In the wake of the COVID-19 outbreak, the sports business has shifted to crypto to recover its losses and assist fans to remain connected with teams in today’s socially dispersed world. This is only the beginning of a new era for sports and Web3 initiatives, which might see many more partnerships and sponsorships in the future if everything goes according to plan. As the value of Bitcoin and meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) skyrockets, initiatives are realizing the necessity of building and maintaining a dedicated fan following, as professional sports teams have done for some time.
It cost $6.5 million to run 30-second commercials during this year’s Super Bowl for crypto.com and Coinbase. According to one sports analytics organization, sports-related crypto transactions are predicted to generate $5 billion in income by 2026. Nonfungible tokens (NFTs) and fan tokens, which sportsmen and teams generate to improve fan interaction, are included when the term “crypto” is used in sports.
These tokens provide holders access to perks such as voting on the music that will be played before a match starts at the stadium. There is a lot of interest in the blockchain business in sports betting, as well as fan tokens.
Even though this doesn’t seem groundbreaking, it has a big influence on bitcoin acceptance. For the benefit of sportsbooks and their customers, cryptocurrency-based sports betting offers a more secure wagering environment than is possible with conventional methods. National Football League teams have made a lot of money using NFTs. It is also worth mentioning that the number of crypto bookies expands as well as the interest in NFTs and cryptocurrencies increases in the industry of sports betting. More than $700 million has been sold on NBA TopShot, an NFT platform that allows users to “own basketball’s greatest moments.” NFT collections have also been issued by numerous sports teams, with the Golden State Warriors being the first.
Sportsmen That Are Paid In Crypto
After the global token market worth surpassed $3 trillion in 2021, the habit of paying athletes’ salaries in crypto grew more popular. Beckham was one of the first NFL players to accept his $750,000 paycheck in the cryptocurrency Bitcoin. These bargains may be accepted by players because of the growing inflation rate of the US currency, which reduces the value of their wages over time.
Rusel Okung asked that he be paid in Bitcoin while playing for the Carolina Panthers in 2019. It wasn’t long before he became one of the first prominent American sports players ever to be paid with digital money. He used the crypto wallet Zap to convert his $13 million paychecks to BTC. When Okung switched his paycheck to Bitcoin, the currency was trading at roughly $27,000.
Trevor Lawrence, a 21-year-old rookie with the Jacksonville Jaguars, changed his signing bonus into a cryptocurrency. Lawrence will be compensated in Bitcoin, Ether, and Solana using the cryptocurrency software Blockfolio. The specifics of his contract haven’t been made public, but it’s expected that he’ll get incentives totaling $24 million. After announcing on Twitter in November of last year that he would be accepting part of his paycheck in Bitcoin, Green Bay Packers quarterback Aaron Rodgers has partnered with the mobile payments platform Cash App. Rodgers’ deal at the time paid him $33.5 million a year.
On the Strike cryptocurrency app, Kansas City Chiefs tight end Sean Culkin will be receiving his $920,000 paycheck. With his career’s physical demands and short lifespan, he said it made sense to be compensated in the currency that “protects its buying value over time,” according to a statement he published. Shohei Ohtani, a famous baseball player for the Los Angeles Angels of Anaheim, has invested in the cryptocurrency exchange FTX and will serve as a worldwide ambassador for the firm, earning all of his pay in cryptocurrencies. “The Great Cryptohtani” is the name given to him by FTX because of his contributions to the firm.
Cunningham inked a multi-year contract with cryptocurrency platform BlockFi in 2021. Cunningham will work with BlockFi to develop instructional films and participate in promotional giveaways and special interviews as part of the agreement. He has an annual salary of roughly $10 million, but it’s not known how much he’ll be paid in cryptocurrency via his collaboration with BlockFi.
Earlier this year, NBA’s Andre Iguodala announced on Twitter that he would be receiving some of his paychecks in Bitcoin. When the Golden State Warriors star announced that he would be giving away $1 million in Bitcoin to his supporters, he did it in conjunction with Cash App. The idea of athletes being paid in bitcoin three years ago was unthinkable, but the world is now at a point where blockchain technology’s potential cannot be ignored. If you’re being paid in cryptocurrencies, you’re a believer in the system’s ability to transform the world’s financial landscape. Cryptocurrency payment mechanisms will continue to expand as Web3 progresses. Cryptography gives the safety, speed, and control that is so highly valued by the public. Cryptocurrency is becoming more popular, particularly among the rich young, as a result of this trend.
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