Global payment processor Visa has described nonfungible tokens (NFTs) as an important source of innovation during the pandemic months.
According to the company, which gauged the assets’ success in a dedicated paper, NFTs proved a viable alternative to many forms of entertainment, driving engagement across multiple verticals.
Based on Visa’s assessment, NFTs have come at a time when a growing number of fans want to belong to digital communities, whether those have to do with sports teams or artists.
Professional teams have lost some $18bn in revenue during the pandemic, but NFTs could prove a way to recover some of this lost money.
In the paper, Visa recommends that sports teams “need to diversify revenue and focus on technology to reposition businesses for growth opportunities and to capture the attention of fans”.
Visa believes that NFTs appeal to a range of customers and organizations, including leagues, fans, teams, collectors and talent.
Visa itself has moved into NFT space by purchasing the CryptoPunk 7610 NFT token, the company’s first, for $150,000.
NFT sales are expected to hit $900m in August alone, which is a significant pick-up in their momentum. In comparison, May’s NFT sales were $255m.
Visa is not the only business exploring the potential of NFTs. DraftKings recently launched its own NFT marketplace and Dapper Labs has decided to sell NFTs in person.
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