How far will the cryptoasset craze affect sports?

In recent months, ties between the world of crypto assets and sports organizations have steadily strengthened, allowing companies like Sorare or Socios.com to record exponential growth in their activities, offering new income opportunities for professional clubs. But are these blockchain-based models sustainable and risk-free for various professional sports players, including fans? Investigation.

January 25, 2022. The news does not make headlines, as the news is dense in the energy sector. However, the event is far from anecdotal. Several countries in Central Asia, including Kazakhstan, Uzbekistan and Kyrgyzstan, experienced massive power outages lasting several hours that completely paralyzed most of the region’s major cities, including Almaty and Tashkent. After an investigation, Kazakhstan’s national electricity company Kegoc names the culprit: the cryptocurrency mining industry, whose several big players left for Kazakhstan at the end of 2021 after tightening regulations in China, will be held responsible for the spike in consumption that led to this blackout.

Although this version is disputed by many political and economic authorities in the region – rather pointing to the obsolescence of the communist era electricity grid – it nevertheless illustrates the madness that has been driving the crypto asset market for several months now. The growing interest in blockchain technology, cryptocurrencies and all their derivative products, which causes high price volatility for various digital assets, but also stimulates the growth of new companies on this wave. tokenization economy.

Sport is not on the periphery of this movement, quite the contrary. French company Sorare, a pioneer in the world of digital NFT football cards, completely reimagined the concept of stickers thanks to blockchain technology and created a fantasy game based on them, completed a fundraising of 680 million dollars last September at a start-up valuation of 4.3 billion dollars! An operation that even received congratulations from a certain … Emmanuel Macron. The tricolor unicorn followed in the footsteps of its American rival, Dapper Labs, which raised $305 million in March to help develop the NBA Top Shot, NFT cards that capture the NBA’s most beautiful moments, attracting investors during this round of the table. like Michael Jordan, Kevin Durant, Ashton Kutcher or Will Smith.

“Our goal is to create a world champion in sports entertainment. The collected funds will allow us to accelerate our development around four axes. We want to continue signing exclusive partnerships with the world’s major football leagues while opening up opportunities for other sports. We also want to recruit the best talent. Then we want to continue to improve our product, for example by creating a mobile application. We also intend to launch our first marketing campaigns. Finally, we want to invest in the community that has been built around Sorare by developing new ecosystems – our cards can already be used in other games – by popularizing sports in a broad sense, helping businesses to underprivileged people and encouraging the representation of women in sports, ”admits Nicolas Giulia, co-founder and CEO of Sorare, during an interview given in the midst of a very busy agenda.

“Our vision is to create a world champion in sports entertainment”

Nicholas Julia – Co-Founder & CEO – Sorare

Funds raised in this way Sorare will be used to increase the already dizzying growth in activity. Launched in 2019, Sorare has over a million registered users on its platform and now has over 300,000 monthly active players. In France, the home of Sorare, over 50,000 active users buy/sell cards every month. limited, rare, super rare Where unique football players and/or participate in the Fantasy League game developed by the startup. Some big players cards are now selling for over $100,000, such as the version unique by Erling Haaland sold at the end of January for… $678,000!

“We are starting to talk about the sonarization of the sports economy! »

Crypto Asset Specialist

“Sorare has implemented a model that meets all the requirements for success. Now the company accepts several hundred new players a day. Sorare is currently looking to expand into new disciplines and other markets, especially in the United States. We are even starting to talk about the sonarization of the sports economy! As soon as a new company starts collecting and starts to succeed, we call Sorare in rugby or even Sorare in cycling… It is a symbol of dedication,” deciphers the crypto asset expert, who prefers to remain anonymous.