CX Monthly

But what is crypto? Can you buy anything with a cryptocurrency?

AT&T and Home Depot all have set up payment systems that enable Bitcoin transactions. There are a variety of iPhone applications that enable customers to buy plane tickets and shop on Amazon using cryptocurrencies. However, until cryptocurrency becomes an accepted and widely used form of payment, we might wonder how it could affect the sports and live entertainment industry.

The most obvious example is non-fungible tokens, or NFTs, which were developed uing the same blockchain technology that runs Bitcoin. Essentially, this technology limits the number of digital copies that can be created of any one thing. The same way that there is a finite amount of money or bitcoin, there can now be a limited number of pictures, highlights, digital autographs, etc., which can be bundled with certain exclusive benefits, such as voting on team matters. Leagues have taken advantage of the exploding NFT phenomenon by selling digital memorabilia, sometimes for hundreds and thousands of dollars.

NFTs, though, aren’t going to be the only way crypto will have an impact on sports. Some clubs already accept Bitcoin as a form of payment, including the Dallas Mavericks and Benfica. While it might be an accounting nightmare to include crypto on the balance sheet, eventually we expect crypto will be widely accepted for transactions with clubs and venues.   In the near term, while crypto is still trying to break into the market as a mainstream currency, we are already enjoying immense sponsorship demand as crypto and blockchain companies via for attention, brand recognition and market share.  Don’t get too excited – a shakeout is coming!  In the meantime, this is a space we all must understand and embrace.

This issue of CX Monthly features several articles of note.

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