NEWSLETTER
Opinion of: James Newman, Director of Corporate Affairs in Chiliz
Blockchain's perception, especially for those outside the industry, has often been driven mainly by stories of extreme volatility, bad actors and speculation.
In recent months, the industry has been dominated by stories about the rise and the subsequent fall of memecoras such as Hawk, Fartcoin and Libra. Retroad 2021, and without a genuine use case, mass exaggeration around non -fungible tokens (nft) could not translate into a long -term success, with the nft project average today with a useful life 2.5 times shorter than the average cryptographic project.
For many, however, the appeal of these assets lies in their volatility, turning a few dollars into a fortune during the night. While nfts and memecoins are undeniably part of the web3 culture, which supports projects, keeps compromised users and drives the industry forward it is not volatility, but providing genuine solutions to real world problems. Ultimately, it is useful.
Utility promotes stability
Many Blockchain projects fail because they are solutions that seek a problem instead of solving an existing one. It is unlikely that assets that do not offer utility are nothing more than a moment of volatile speculation. While digital assets continue to push the limits of technological innovation, human needs of utility and tangible value remain constant. In addition, the usefulness of a digital asset promotes stability by changing the short -term speculation approach to a significant commitment.
When evaluating the stability of a digital asset, its longevity is much more revealing than short -term price changes. Volatility is inherent in cryptography, but the precise measure of resilience is whether a project can support market cycles. Fans tokens have demonstrated this stability, while nfts, despite their initial boom, have mainly fought for maintaining a long -term value beyond speculative exaggeration.
While Memecoins certainly generates exaggeration, their longevity is fleeting. 97% of memecoins launched in 2024 have already failed. There are exceptions, of course, but most overwhelming does not have the test of time.
On the contrary, sports clubs have been broadcasting fans since 2018, altering bull and bear markets. His resilience comes from utility: fans tokens continually evolve to reimagine fans participation, bringing fans and clubs.
Solve problems, create value, establish longevity
The connection between utility and stability is clear. Digital assets that solve real world problems encourage sustainable adoption. Instead of attracting speculators with the hope of rapid profits, assets promoted by utility bring users a true need or interest in the project.
The emergence of the stable underlines the importance of utility.
Recent: fTokens offers stability: nfts have not
In the last six months, Stablecoin market capitalization has grown from $ 160 billion to $ 230 billion. According Research AselediaIn 2021, there were 27 established. By July 2024, there were 182, which represented a growth rate of 574% for three years. The reason? Stablecoins provides users with a real utility, whether it is a small business owner that seeks to make transactions through borders or a developer seeking liquidity for its decentralized finance protocol (Defi).
Another indicator of the usefulness of an asset is institutional adoption. To put it without surroundings, Blackrock invests in bitcoin (btc). It offers funds quoted in the btc Stock Exchange (ETF), No Fartcoin, because institutions prioritize assets with a proven history of creating tangible value for their clients about short -term speculation and exaggeration.
For sports fans, emotional connections with their teams are deep, even if they have never set foot in their team's stadium. Fan tokens fill this emptiness and take advantage of this emotional connection offering more ways for fans to get involved with their teams through direct participation and rewards, regardless of where they are in the world.
Whether vote in the team's decisions, accessing exclusive agreements, rethinking fans for additional advantages or simply owning a part of your team's digital identity, fans tokens provide utility through their life cycle.
The future of digital assets
To carry it completely, the original vision of Satoshi Nakamoto for bitcoin was to solve a problem: an unfair financial system. 16 years later, despite the many Blockchain technology applications, it remains the reality of the asset.
The future of digital assets will be defined by their ability to solve real world problems, which are recognized by the clubs themselves. That is why not only make fans tokens, but actively grant their intellectual property rights to strengthen trust and credibility in the asset. When some of the most emblematic sports brands in the world adopt Blockchain technology in this way, it is a clear sign that the next era of fans are not on the horizon, it is already here. And we are just beginning.
Beyond fans tokens, Blockchain is transforming the sports industry into multiple dimensions, and each case of use is increasingly interconnected. Take Tether's recent investment in Juventus. The increase in the price of the Juventus fans record underlines how deeply blockchain and crypt cross between investment, sponsorship and fans participation. With cryptographic sponsorships in sports in 2024, this convergence will only accelerate as clubs, leagues and brands explore new ways to take advantage of web3 technology, creating experiences of richer and more interactive fans while unlocking new sources of income.
Opinion of: James Newman, Director of Corporate Affairs in Chiliz.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The points of view, the thoughts and opinions expressed here are alone of the author and do not necessarily reflect or represent the opinions and opinions of Cointelegraph.
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