Although non-fungible tokens (NFTs) have been around for over seven years and, as part of the cryptocurrency space, are anticipated to play a huge part in the future of finance, many people outside the tech, crypto and VC scene remain skeptical. And to some extent, they’re right to be skeptical.
Given the relative novelty of the NFT space, those wishing to get involved are still very much in need of guidance. This applies to all industries, including sports clubs, entertainment and businesses. Every NFT agency out there is relatively new to the industry. This is simply the nature of things. Yet, this doesn’t mean that sports organizations or clubs looking to launch NFTs should hold back.
Another technique to overcome challenges has been to develop a team that mixes traditional agency processes with new-age Web3 thinking. This fusion of bright minds underpinned by precise processes, excellent client service and a desire to be leaders and innovators is essential for success in this new and exciting ecosystem.
It is essential that clubs remain in control of the fan experience. This is currently our recommendation in most cases. Avoid handing over the fan journey and experience directly to a third-party platform; this creates a disconnect, which means you can very easily lose them. Whenever possible, we advise that the journey remains within your owned platforms at all times. By doing this, you can make sure your partners remain in control of data and processes to further minimise risks.
Other people might wonder how to find legitimate and trustworthy platforms for their NFT drop. Firstly, and most importantly, educate yourself of possible partnerships. This decision shouldn’t be about big checks, but long-term strategic business partners whose brand ethics and behavior represent that of the club. We, therefore, run vigorous due diligence checks on all potential blockchain companies. The knowledge and expertise we gain from this guide our recommendations to our clients.
In my opinion, the majority of digital collectible launches fail because of the wrong intentions. When focusing on a quick financial gain over fan engagement and education, you are bound to face many operational risks and challenges. We see this mistake over and over again: Organizations engage in NFTs with the main intention of making quick financial gains. We advise our clients against using NFTs solely for their economic advantages or to recoup revenue losses. Instead, the most important factor (when it comes to sports) is fan engagement and building a long-term strategic roadmap.
We can’t stress it enough: Education is the key to success. Place the supporters at the heart of your strategy. Without their involvement, the activity will fail. Develop roadmaps for your clients over two to three years that are centered around their community. This allows you to create clear and concise strategic recommendations to take your clients from conception of the idea to execution. Such clarity accompanied by clear timelines ensures a seamless campaign and works toward tangible business outcomes, allowing you to balance community engagement with revenue.
Further, stakeholder education is critical to aid decision-making and instill trust. Whilst we have internal expertise, we also work with third-party consultants to help deliver smart and informative workshops to inform more people about this new ecosystem.
Whilst there are many challenges and potential risks associated with the launch of NFTs, we are confident that the right approach and strategies increase the performance massively, which in turn helps build trust. This, in combination with having the right intentions for the launch of an NFT drop, lay the groundwork for success.
The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
Timothy Mangnall is the CEO of Capital Sports Media.
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.