Following its evaluation of the technology behind the assets, Visa is now going all-in on NFTs. NFTs, according to the global payment giant, have the potential to serve as a medium for fan engagement. This was described in a recent whitepaper published by Visa.
Visa appears to see non-fungible tokens as a critical innovation during the recent pandemic, according to the publication. According to the publication, strict restriction orders limit live sports, music festivals, and entertainment.
NFTs arose as a result of fans’ desire to join digital communities that depict their favorite sports teams and artists.
What Will Cause NFTs To Take Off?
The pandemic struck professional sports the hardest. The major global leagues are expected to lose an estimated $18 billion in revenue.
Visa believes that this will increase the need for revenue diversification and a greater emphasis on technology. This will result in a repositioning that will lead to more business growth opportunities as well as increased fan attention and participation.
NFTs are appealing to fans, leagues, teams, talents, and collectors, according to the report. It also highlights the NFTs’ uniqueness as primary sources of fan engagement, new revenue streams, and customer relationship management. However, art, gaming, and collectibles have proven to be the most useful applications of NFTs thus far.
The whitepaper’s release coincided with Visa’s announcement of the purchase of CryptoPunk 7610, the company’s first NFT. The NFT was purchased by Visa for $150,000, and the token’s proof of ownership is stored on the Ethereum network. There are 10,000 different NFTs in the collection.
According to industry sources, 2,519 CryptoPunk collectibles were sold in the last 30 days for a total of $467.4 million. CryptoPunk 7252, which sold for 1,600 ETH and was worth $4.5 million, was the highest-grossing sale during the period.
NFTs are gaining popularity in other niches, in addition to CryptoPunk’s increased adoption. According to reports, the NFT marketplace’s net sales will exceed $900 million in August.
This is a new high for the industry. The previous high was $255 million in net NFTs sales, which was set in May. The crypto markets reached new all-time highs in May, only to be followed by a multi-month correction period.
Visa’s foray into NFTs is unsurprising, given the company’s growing interest in cryptocurrencies. Zipmex, a crypto platform, recently signed a deal with the company.
As a result, crypto payment integration is available in the Asia-Pacific region. Additionally, Visa confirmed earlier this year its commitment to establishing crypto payment and fiat on-ramps. This was a move to elevate the digital asset class.