Bitcoin is easily the best known and most valuable cryptocurrency, but there is more to cryptocurrency than just Bitcoin – and much more to the technology behind it than just digital currency.
All cryptocurrencies are based on blockchain technology: a decentralized non-removable ledger system that acts as a robust, untrusted database. Copies of the blockchain for each currency or project are spread across the computers of all participants in the network, ensuring backup at all times and reducing the possibility of bad actors successfully changing records .
RELATED: Team Alliance becomes the latest organization to launch fan tickets on Socios.com
Bitcoin’s rapid rise and fall in value in late 2017 has led some to deny the digital asset and others, labeling it a bubble that popped, but the broader cryptocurrency market continues to grow: it sits on a market cap of around $ 570bln as of this writing. , with other currencies such as Ethereum, Tether, and Ripple each well above the $ 10bln mark respectively.
Blockchain technology started with Bitcoin, but has proven to be a valuable technology for non-cash purposes. While there is a wealth of start-ups developing tools around blockchain, giants and big corporate governments are also adopting it to help with food security, welfare benefits and data analytics. It also boosts a new industry of digital collections, where digital artwork, in-game items, and other creations are individually “streamlined” on blockchain to prove scarcity and authenticity.
Now those digital collectibles have hit the esports market. As of this writing, we’ve seen four major esports teams announce crypto fan tickets, which fans can buy to access exclusive features. For example, owning fan tickets could allow someone to vote on team issues – such as which flag in the game they should use in competitions – as well as having early or exclusive access to buy goods, or possibly being able to meet or compete. against their favorite players at an event.
G, the back-to-back international champions for Dota 2 in 2018 and 2019, was the first esports team to offer a fan ticket in conjunction with crypto startup Chiliz and his Socios.com platform. Chiliz has also signed a range of traditional sports brands such as FC Barcelona, Juventus, and the Ultimate Fighting Championship, In addition, esports co-organizations Team Heretics, Natus Vincere, a Team Alliance recently started offering their own coins through the platform as well.
“We are honored to work closely with Socios.com so that our fans have the opportunity to get involved in building an OG story,” OG CEO Johan Sundstein wrote in a statement. “Socios.com gives fans a voice, so the connection with OG was quite natural. Improving the connection to our community has always been part of OG DNA. With Socios.com, we’ll be able to take it to the next level. We want to push the experience further, by offering them the opportunity to make a real impact in some of OG’s decisions. ”
RELATED: Team Heretics to launch fan ticket through Socios.com partnership
Recently, Gen.G Esports he launched his own crypto fan ticket for his Counter-Strike: Global Offensive team, titled IS Coin. That particular initiative was founded in partnership with a startup company called Rally, who has shared leadership with the org: Gen.G co-founder and Chairman Kevin Chou is also the founder and CEO of Rally. The soon-to-be-released GG Strike Coin gains access to private Discord chats with Gen.G players and coaches, among others.
In addition to the many functional benefits of ownership, the digital tickets themselves can rise in value over time, especially with a fixed number of cohorts. OG Token Fan was initially offered for about $ 1 each, but as of this writing, CoinMarketCap notes that the market price is just over $ 2 each. Look, it probably won’t challenge Bitcoin in that regard, given its current price of over $ 19,000, but it could still be a valuable investment.
It’s still early days for fan tickets, but the initial examples show the potential for esports organizations to generate additional revenue while providing more detailed and unique engagement opportunities for those who buy into the system .
However, the wider market has its challenges in terms of mainstream adoption, and perception is one of the biggest. Quite simply, many people still do not understand what cryptocurrency is or why it is valuable. Some believe that crypto technology is only used for non-business and illegal methods when there is actually significant legal use and potential.
Esports teams considering a crypto-backed fan ticket must avoid fueling that negative perception by viewing the move as a revenue-playing trend-chasing trend. If crypto fan tickets are truly here to stay, esports organizations must provide buyers with clear and lasting benefits. The more value teams create around the tickets, the more valuable they become – and there may be more than a handful of teams offering this time next year.
This article first appeared in Issue 7 of The Esports Journal.
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