Play. Predict. Get Rewarded.
With interest and opportunities in the NFT economy and esports at all-time highs now is the time to look at ways to invest in it, and Fandom Sports Media Corp. is one such way. This article explains what the NFT economy is and why Fandom is an excellent way to “play” it.
An original article by Lorimer Wilson, Managing Editor of munKNEE.com – Your KEY To Making Money!
About Fandom Sports Media Corp. (CSE:FDM; OTC:FDMSF; FSE:TQ43)
Fandom is an entertainment company that:
- has developed a proprietary gaming and micro-services platform via a mobile-friendly application for esports fans to engage, predict, interact, and earn rewards,
- provides players the ability to interact in near real-time with live events while earning rewards for their participation by leveraging streaming data and predictive analytics and
- is changing the way that game publishers, tournament hosts and esports fans will be able interact with real-time game data through localized content, hyper-gamification and purpose built custom deployments.
What Is Esports?
Esports is competitive video game playing in games of all genres including strategy, shooters, fighting games, sports, and other types of real-time online multiplayer games. Esports athletes, who have practiced for thousands of hours, compete independently or in teams at competitions globally either live in stadiums, online and streamed though TV, OTT, or mobile. Indeed, esports is not too different from traditional sports, as both are a form of entertainment that involve competing and watching others play games. Last July, for example, teenager Kyle Giersdorf won US$3.0M at the Fortnite World Cup in New York City.
What Are NFTs?
NFTs stands for Non-Fungible Tokens and are in-game digital assets which, when awarded or rewarded to a player, give the user, not the game developer, full ownership of the assets. (For the video gaming and esports neophytes, in-game rewards have been around since the birth of video games, and go back to the “free game” and other rewards in arcade games.)
NFTs were developed to create verifiable and provable digital ownership for unique digital items including artwork or in-game items, such as a magical sword or an avatar with their authenticity backed by blockchain technology, in this case, Ethereum.
What Is A Fungible Asset vs. a Non-Fungible Asset?
A fungible asset is an item that can be replaced or interchanged by an identical item. A dollar coin is a great example of a fungible asset – it can be exchanged with any other dollar coin of the same currency. Similarly, a bitcoin is also fungible and can be exchanged for any other bitcoin. NFTs, however, are a type of cryptographic tokens that are not fungible (i.e. are unique) and, as such, not mutually interchangeable.
What Are FDM Tokens?
On January 11th, Fandom announced plans to undertake the development of Non-Fungible Tokens (NFTs) to reward esports fans on its All-Age Prediction Platform.
Since each Fandom NFT (i.e. FDM Token) will be unique, it will become a collectible – a crypto-collectible – and, since the user owns the asset, it will be able to be traded or sold, inside and outside of the Fandom Platform, without permission from the game developer. An NFT can be sold or traded on websites such as OpenSea, VE-VE, and WAX, which have emerged as trading platforms for NFTs.
Allowing fans to earn scarce rewards and participate in the tokens will cause users to spend more time on the platform and possibly purchase more in-app offerings for a better chance of earning these exclusive to FDM Tokens. which will drive a multi-million dollar revenue engagement on their prediction platform. According to David Vinokurov, CEO and President, “the creation of unique, inter-operable digital assets will create user incentivization, motivation and reward users with unique digital assets found nowhere else. The possibilities for unique branded content, giveaways, raffles and other incentives are endless and will diversify the portfolio of tools for monetization that Fandom will be deploying.”
CryptoKitties – One of the First Viral NFTs
In 2017, NFTs erupted with the release of CryptoKitties, which allowed players to buy, collect, breed, and sell virtual cats using NFTs on the Ethereum network. Each virtual cat was a unique digital asset with its own digital genome that is stored in a smart contract. After one month of operations, CryptoKitties registered almost 200,000 users with 10 virtual cats selling for over $100,000.
Current Uses for NFTs
NFTs, representing a variety of assets, can be found on a large number of popular sites such as KnownOrigin, MakersPlace, and SuperRare for digital art; Mintbase and ROCKI for digital music; Gods Unchained and SoRare for digital trading cards; Axie Infinity and World of Ether for gaming assets and Cryptovoxels and Decentraland for virtual real estate.
- December 2020 set a new record for the blockchain-based art market with +$8M of NFT artwork being sold (75% of all transactions) that month which is up considerably from the $54M realized over the past 3 years.
Goldman Sachs projects that by 2022E:
- viewership is expected to reach ~650M and
- the esports industry will be valued at $3.1B, implying a four-year CAGR of 35%
As NFTs grow in popularity and become more mainstream, digital artists and the creative community will surely leverage this technology to give them a new method to market their creations.
To that end, Fandom is already reaching out to collaborate with artists, brands, and marketers to take advantage of the NFTs and create unique and branded digital assets and this creation and trading of FDM Tokens could generate millions of dollars of revenue for Fandom from transaction fees as well as increasing fan engagement, which could stimulate in-app purchases, sponsorships, and advertising on the platform.
Interest, opportunities, and investments in the NFT economy have never been higher so now is a good time to look at ways to invest in it, and there is no better way to do so than in Fandom Sports Media.
As the chart illustrates above illustrates, COVID-19 stay-at-home orders (i.e. no live sports, no live entertainment, etc.) have caused people to discover Fandom, realize its potential and invest in the company.
- The first COVID-19 surge caused Fandom’s stock to increase 5-fold through April and May.
- By the time August had arrived people had become complacent and the stock declined as a result.
- With the third wave in full swing, however, the stock price is recovering and is up 3-fold in the past 2 months.
Given that the pandemic will be with us for much of 2021, and given Fandom’s announcement of the development of Non-Fungible Tokens (NFTs) to reward esports fans on its All-Age Prediction Platform, it would not be surprising (indeed, it is most likely) that the stock price will surge as 2021 unfolds.
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