Visa’s splash into the NFT market was driven by an evaluation of the underlying technology and its ability to serve as a “promising medium for fan engagement,” according to a recent whitepaper published by the global payments giant.
The Aug. 23 publication described nonfungible tokens as an important innovation during the pandemic, where strict shelter-in-place orders limited live sports, entertainment and music festivals. At the same time, NFTs are emerging at a time when fans are eager to join digital communities centered around their favorite artists or sports teams.
Professional sports were hit especially hard by the pandemic, with an estimated $18 billion in lost revenue across major leagues worldwide. According to Visa, this further drives the “need to diversify revenue and focus on technology to reposition businesses for growth opportunities and to capture the attention of fans.”
In this sense, “NFTs appeal to collectors, fans, teams, leagues, and talent,” the report said. In particular, NFTs can become primary sources