As cryptocurrency becomes more commonplace, many industries have begun to use the technology to open new ways of investing.
One of the latest applications for cryptocurrency is in sports finance, or SportsFi. In this article, we’ll take a look at three SportsFi platforms: Chiliz, Rario, and Sportiqo.
Chiliz: A Fan Token Platform
Chiliz is a cryptocurrency trading platform that mints fan tokens—crypto assets that represent professional sports teams.
The platform has partnered with leading cricket teams like the Royal Challengers Bangalore, the Punjab Kings, and the Kolkata Knight Riders and issued tokens for those teams.
Chiliz also supports fan tokens for football teams such as FC Barcelona, basketball teams such as the Golden State Warriors, and racing teams such as the Aston Martin Cognizant F1 Team. Chiliz additionally launched an Ultimate Fighting Championship (UFC) fan token in 2021.
Investors can earn rewards through Chiliz by holding fan tokens and participating in activities and promotions. Investors can also use those tokens to win prizes and access to special events. Plus, investors can sell fan tokens for profit or use their tokens to vote on polls that influence team decisions.
Chiliz often adjusts the value of fan tokens based on team performance. The project “burns” or destroys fan tokens to increase token scarcity and market value.
Chiliz’s main cryptocurrency, CHZ, exists on two blockchains: Ethereum and BINANCE Smart Chain. As of Nov. 23, 2022, the CHZ token ranked as the 44th largest cryptocurrency, as it has a market capitalization of $990 million.
Chiliz is closely connected to Socios.com, a fan engagement platform that uses the CHZ token.
Rario: A Market for Cricket NFTs
Rario is a platform that issues licensed non-fungible tokens (NFTs) for cricket leagues.
Investors can purchase Rario NFTs on the company’s marketplace, then hold those NFTs or trade them with other users. The value of each Rario NFT is based on supply and demand: rare but popular NFTs are worth greater amounts of money, much like trading cards.
NFT holders can gain access to benefits such as VIP match tickets, commentary box access, and meet and greet events featuring top players. Users who sign up for the service can earn a $10 bonus for each friend that they refer to the Rario platform.
Rario produces NFTs for various cricket leagues including the Hero Caribbean Premier League, the Lanka Premier League, the Abu Dhabi T10 League, and Legends League Cricket. The company’s selection of NFTs features over 1000 cricket players and more than 70 athletes who have been selected to serve as brand ambassadors.
Rario’s NFTs are minted on the Polygon blockchain, an ecologically-friendly sidechain for the Ethereum blockchain. Because Polygon does not rely on mining, transactions involving Rario NFTs can be performed quickly and inexpensively, and they require very little energy overall.
Sportiqo: An App for Player Tokens
Sportiqo is an up-and-coming platform that allows users to invest in cricket player tokens. It is like a cricket stock market. It features Player Counters (PCs), which are digital tokens that track player performance.
The platform allows users to invest in individual players instead of investing in entire teams. Investors can also choose the duration of their investment?—whether for a single game, a full season, or an entire career. Then, investors can sell their most profitable Player Counter tokens on the Sportiqo marketplace.
Each Sportiqo player’s value is derived from a formula that awards points to players based on their performance. However, tokens will feature real players from leagues such as the Indian Premier League and Australian Football tournaments. Sportiqo will also add players from European soccer leagues at a later date in Q3 2023.
Sportiqo will use a native currency called SPQ, which will be minted on the Polygon blockchain. Users can pay for Player Counter tokens with cryptocurrency or with fiat currency.
Sportiqo plans to launch its app in December 2022. Tokens will be available in early 2023.
Will SportsFi Gain Ground?
SportsFi is a promising application for crypto and blockchain technology thanks to the size of the market. The value of the global sports industry was $354 billion in 2021, and that number is expected to double to $707 billion by 2026.
Though media rights, ticket sales, and other types of revenue make up a large part of the sports industry, merchandising and collectibles also represent a significant portion of the industry.
This puts blockchain firms like Chiliz, Rario, and Sportiqo in a good position to establish new trading platforms, fan tokens, and non-fungible collectibles. Likewise, investors will have plenty of opportunities to buy and sell new assets.
