2023 really shook things up in the world of digital sports collectibles. We saw a mix of hits and misses when it came to blending crypto with sports entertainment. Several Web3 projects had to switch gears or tweak their strategies to keep up with the ever-changing demands of the market.
Silver Lining in Sports Fan Culture
Despite these challenges, platforms focusing on fan culture managed to stay strong. New ones that emphasized gamified experiences even saw some impressive growth. It turns out, most fans aren’t really into managing teams through tokens. What they crave is a closer connection to their favorite players and fresh ways to enjoy their beloved sports.
Three Key Insights from 2023’s Web3 Sports Scene
Fan Tokens: Down but Definitely Not Out
Fan tokens have been around for a while, promising cool perks like voting rights and exclusive content. But, let’s be honest, they haven’t really delivered on these promises, which has led to some fan frustration.
Take Tottenham’s fan token, for example. It faced the same backlash as earlier tokens from clubs like Paris Saint-Germain and Juventus. Fans felt left out of club decisions, and it seemed more about speculation than real engagement. The UK even released a report slamming British soccer clubs for hyping up NFTs with questionable benefits.
But it’s not all doom and gloom. Some clubs, like Japan’s Avispa Fukuoka, are taking fan tokens to the next level with decentralized autonomous organizations (DAOs), giving fans much more say in club matters. This new approach could breathe new life into the fan token concept.
Fans: They Want to Play, Not Just Own
For sports enthusiasts, collectibles are a big deal – they’re part of their fan identity. That’s why digital collectibles, especially those with a gaming twist, are hitting it off with fans. NFL Rivals is a great example – a game where fans can build virtual teams using NFL player NFTs. It’s all about making the collecting and trading process more fun and engaging.
Platforms are also making Web3 more accessible with things like commemorative tickets and free-to-play games. For instance, over 100,000 commemorative baseball tickets were redeemed in 2023, and a free baseball game was launched to celebrate the MLB playoffs.
Connecting, Not Just Collecting
Major leagues like the MLB and NFL are diving headfirst into Web3, creating new spaces for fans to connect with each other and their favorite players. The MLB launched its own virtual ballpark in their metaverse, complete with live events and Web3 features. And the NFL Alumni Association is working on a platform that lets former athletes create their own Web3 experiences for fans.
Deloitte’s 2023 Future of Sports Fandom report suggests that fans are leaning towards more interactive and immersive in-home sports experiences. This year’s Web3 developments are definitely setting new standards in the industry.
What to Expect in 2024
The successful Web3 sports projects have learned a lot from recent market challenges. They’re focusing on creating experiences that bring fans closer to their favorite players and offer new ways to enjoy sports. It’s not just about getting fans into crypto; it’s about unlocking new kinds of entertainment and engagement through Web3 technology.
A Bit About Scott M. Lawin
Scott M. Lawin, the co-founder and CEO of Candy Digital, is a big name in this space. Candy Digital is a cutting-edge platform in sports and culture digital assets, known for creating authentic items and experiences that deepen fan engagement. Before Candy, Lawin founded Parametric, LP and was a key player at Moore Capital Management and Fortress Investment Group, with a background at Goldman, Sachs & Co.