The strong involvement of the sports ecosystem is what has accelerated non-fungible tokens (NFT) widespread adoption as teams and players leveraged technology for fan engagement. However, sports fans have revealed their interest in going beyond the hype and making investments based on knowledge of NFTs and trust in issuers.
The prolonged crypto winter has leveled inflated price floors across the NFT ecosystem, inadvertently altering investor sentiment and forcing users to rethink their long-term investment strategies. A study published by the National Research Group (NRG) has revealed an openness among sports fans to learn more about NFTs as they wait for a greener market.
In June 2022, NFT sales fell to their lowest level in a year – signaling a momentary end to the NFT hype. Surveying 3,250 sports fans in the US, UK, Japan and Brazil, NRG’s research found an increased fear of losing money or getting ripped off as one of the biggest barriers to the purchase of NFTs.
Overall, only 15% of respondents had complete confidence in NFT markets, while 30% indicated little or no confidence in them. The survey found that “this problem is particularly acute in Japan, where 4 in 10 consumers have low confidence in NFT marketplaces.”
Despite geopolitical differences, investors in all four countries unanimously agreed on the need for stricter regulation on NFTs, given factors such as age restrictions and risk tolerances.
In the US, UK, Japan and Brazil, 58% of sports fans believe they have some understanding of NFTs. Additionally, 54% (or 1,755) of respondents believe that NFTs have had a positive impact on their favorite sports.
Related: NFT sales will finance the restoration of physical monuments in Ukraine
Ukraine’s Ministry of Culture and Information Policy has notified Cointelegraph of the government’s intention to use proceeds from NFT sales to restore physical works of art.
According to the ministry, the proceeds from the sales will go to “the restoration of Ukrainian cultural institutions”, many of which have been damaged or destroyed in an ongoing war with Russia.