French firm Sorare – which sells non-fungible token (NFTs) football cards, has raised $680 (£498m). The firm claims to trade worth $150m on the platform since January. The current investment puts its worth at $4.3bn (£ 3.15bn)
Companies like Rarible, OpenSea, Foundation, superRare, Axie Infinity, and Mintable also sell NFTs. The firm Sorare uses Ethereum (block Chain technology) for its fantasy game of football.
How does NFTS work?
NFT stands for a non-fungible token is something like units that is interchangeable – like currency. It is consider a certificate of ownership for virtual or physical assets.
NFTs do not have tangible form, they are ‘’one-of-a-kind‘’ assets in the digital world. Though, they can be sell like any other piece of property or asset.
NFTS is tokenized in a digital world to sell and purchase, and to get ownership of the work.
What Advantage Sorare firm has over NFTs?
Since football fans are crazy to support their super starts, they buy anything in connection with football teams. Sorare firm has an advantage here.
The NFT-based Cards are brought by the fans to create Fantasy football teams that can then ‘’Play’’ each other.
The funding for the firm was led by tech investor Softbank, with ex-England international Rio Ferdinan also putting in money. Though, NFTs are risky and have environmental impacts.
According to a BBC report, Sorare has partnerships with more than 180 football clubs and has registered users of about 600,000.
Also, players including France’s Antoine and Spain’s Gerard Pique have invested in the company. On a deal with Spain’s Liga, the firm announced that it has ‘’ something to announce’’ about the premier League.
Crypto-currency-based fan-tokens are now common, Socios firm also partners with clubs such as Manchester City, Barcelona, Paris ST-Germain, and Juventus.
The firm uses exclusive promotions, chat&superfan recognition, access to VIP rewards, and promotes the token on its website.
Also, there is a lot of criticism regarding the engagement of football clubs in Crypto-currencies saying that these clubs are involved in speculations of digital currency.
BBC reports, Leeds United Supporter’s trust was critical of the club’s decision to have an agreement with Socio saying that the fans would enter in a ‘’Crypto-currency ecosystem, something which many may have very little knowledge’’
‘’ if football chooses to bring unregulated crypto-currency into the game, we believe that clubs also need to provide education and guidance on the purpose and risks associated.’’
Despite, having controversy NFTs market does not have restrictions on its selling and buying.