NFTs As A New Source of Revenue For Streamers and Esports Clubs

What is an NFT? NFT stands for non-fungible token - a unique, unrepeatable and indivisible cryptographic token that is registered on a blockchain through a smart contract. Still a bit perplexed? Think of it as an item (a token) recorded in a decentralized and immutable ledger (blockchain) to demonstrate ownership and verifiable authenticity.

NFTs are not new to the esports industry and have already been making waves. Chiliz and Socios.com, the homes of Team Vitality and Team Heretics, respectively, have their own fan tokens; G2 Esports and Fnatic have integrated with cryptocurrency exchanges; and there are NFT marketplaces like that of event organizer ESL. Esports and NFT have been linked for some time now, and at FITCHIN we’re taking that relationship to the next level.

NFTs are not just collectibles

NFTs should not be pigeonholed as collectibles or memorabilia. Sure, there are emblematic success stories where they play that role, such as Bored Ape Yacht Club (the most expensive collectibles in the world) or NBA’s Top Shot (which offers game video clips as NFTs).

Esports can leverage NFTs as collectibles, of course. Event organizer ESL also offers gameplay clips for purchase. However, the applications go far beyond that. NFTs can and should be used as a gateway to exclusive experiences. Therein lies the power of NFTs as a loyalty and community-building tool. This is where an industry that understands the importance of these communities and how crucial it is to maintain their loyalty can capitalize on NFTs.

Think of an NFT as exclusive membership in a club - as a ticket to special events or exclusive tournaments, as access to a new line of merchandising, as the ability to participate in the club’s decisions or as a pass to a space in the metaverse. The FITCHIN universe makes it all possible.

Monetizing esports through NFT

Esports clubs have been looking for new sources of revenue for years now. Today, the electronic sports market moves about $1.4 billion dollars per year, and clubs generate just under 10% of their turnover in direct ways outside of commercial sponsorships, according to Newzoo. Clubs aren’t generating a single penny from the blockchain economy. At FITCHIN we’re here to change that.

According to the consulting firm Deloitte, the NFT market will increase from $14 billion in 2021 to $75 billion in 2025. The same report indicates that five million people will transact with sports NFTs in 2022 for a total of two billion dollars. It’s worth noting that 55% of esports followers are potential owners of crypto assets, compared to just 5% of the millennial population generally.

We want to be the gateway for esports clubs to the blockchain economy, facilitating processes and providing the full range of possibilities enabled by NFTs. We’ll make sure this connection is meaningful and supports each club’s community. Fans reject the idea of their club launching NFTs for the mere sake of monetization. What they want is added value and for their own economic benefit. Enter FITCHIN: we’re going to put this puzzle together.

NFT benefits for everyone

As part of our gamification initiative, FITCHIN users will be able to create their own avatar that they can level-up using energy earned by participating in tournaments and various activities on the platform. This interaction has two immediate direct benefits: improving one’s avatar and selling surplus energy for $CHIN, FITCHIN's own token, which can then be traded for other Solana blockchain-compatible cryptocurrencies.

The $CHIN will also allow users to acquire access to:

• Exclusive content and tournaments
• Special benefits and discounts
• Exclusive online and face-to-face experiences
• Voting and participation in club decisions
• Exclusive and limited product and collectible releases
• Managing the $CHIN community treasury
• Spaces and experiences in the metaverse

These possibilities, in addition to providing fans with added value, will provide clubs with new revenue sources and, above all, pave the way for them to enter the blockchain economy. Considering that clubs will also be able to generate more content, have more sponsorship spaces and, most importantly, retain their audience, a strong Web3 presence will be indispensable. At FITCHIN, we make that presence a pillar of success.