How The Metaverse Is Driving a New Era of Sports Crowdfunding
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In a sports industry that’s struggling to raise funds during tough economic times, many sports brands are looking at novel ways to raise money.
For some, the metaverse is providing the answer. The emergence of this virtual world that allows users to engage in immersive experiences is driving a new era of sports crowdfunding via state-of-the art platforms that use fan power to generate financial backing for new projects.
In return, fans get to connect and engage with their favorite teams and athletes in new ways, opening up new opportunities for them and the sports brand behind the platform.
Here’s how some leading sports organizations are using this brand-new Web 3.0 technology in a new-look digital world.
What is the metaverse?
The metaverse is a term used to describe a future version of the internet that is fully immersive, interactive, and three-dimensional. While elements of it already exist, a true metaverse will allow users to engage in a range of experiences and interactions with each other, as well as with virtual objects and environments.
Many countries around the world are already fully embracing the metaverse, with the UK, for example, hailed as having the highest metaverse curiosity in Europe. Users of the metaverse will be able to create their own avatars, explore different virtual spaces, and engage in a range of activities such as gaming, socializing, and shopping.
Take gaming, for example. Video games will take on an even more realistic feel and provide players with a fully 3D experience. Even traditionally lower-quality online games, such as a slot machine game you might find in one of the best slots sites UK, will become much more immersive, allowing players – regardless of whether they’re from the UK or not – to explore and interact with different levels of the game.
It’s no surprise, then, that companies around the world have latched onto the idea of leveraging the metaverse to raise capital among its client base, including sports clubs. Crowdfunding, the method that uses the power of many people to offer equity, rewards, or nothing at all, in exchange for funds, is quickly gaining currency among US sports brands. And it’s finding a home in the up-and-coming metaverse.
How metaverse sports crowdfunding will work
Metaverse sports equity crowdfunding is a new concept that aims to enable sports fans to invest in their favorite teams or players using Web 3.0 technology.
It would work along the following lines: fans buy shares of their favorite teams or players through a virtual reality platform, which allow users to buy and sell virtual real estate. These shares would be handed over in the form of tokens that are powered by blockchain technology, meaning investors purchase shares through cryptocurrency or other digital assets.
From then on, fans would receive a portion of the revenue generated by the teams or players, such as from merchandise sales, sponsorship deals, or ticket sales, much like a traditional shareholder would. It would give them a more direct stake in the success of their favorite teams or players, potentially leading to increased engagement and loyalty.
However, it’s important to note that this concept is still in its early stages, and there may be regulatory challenges and uncertainties to address. Investing in sports teams or players also involves risks, and investors would ideally complete due diligence and consult with financial advisors before making any investment decisions.
AI-driven sports platforms
Some sports brands are ahead of the curve when it comes to equity crowdfunding and have harnessed the power of AI to create their own metaverse platforms.
LootMogul is one example that’s been created by athletes for athletes and has launched a new ownership model through an equity crowdfunding campaign on republic.com. The platform initially focused on professional athletes and signed up several WNBA, NBA, and NFL legends as brand ambassadors.
With a growing demand from college and high-school athletes seeking pro mentorship and engagement with their fans, LootMogul partnered with Burrst and Athletiverse for the launch, and secured over 100 investors within the first few months.
Such a project may just be the start of this fundraising method. Equity crowdfunding platforms are likely to see continued growth and expansion in the coming years. With advancements in AI technology, these platforms will be able to better predict and evaluate investment opportunities, offering investors a more accurate and efficient way to invest in sports teams and related ventures.
Younger generations of sports fans that are seeking alternative ways to engage with their favorite teams and players will also come to expect these interactive opportunities, and it may mean that sports brands that don’t offer them miss out on useful revenue streams.
As the sports industry continues to evolve, these platforms have the potential to reshape the landscape of sports ownership, providing more opportunities for diverse and inclusive ownership structures.
In a sports industry searching for ways to finance new ventures, the future looks bright for sports equity crowdfunding platforms, as they continue to provide innovative solutions for both sports investors and fans.
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