It was the intense engagement of the sports ecosystem that accelerated the adoption of non-fungible tokens (NFTs) as teams and players took advantage of technology to engage fans. However, sports fans revealed an interest in going beyond the hype and making investments based on knowledge about NFTs and trust in the issuers.
A prolonged crypto winter has driven inflated ground prices across the NFT ecosystem, inadvertently shifting investor sentiment and forcing users to rethink their long-term investment strategies. A study by the National Research Group (NRG) reveals an openness among sports fans to learn about NFTs as they await a greener market.
Number of daily NFT sales between June 2021 and June 2022. Source: NonFungible
In June 2022, NFT sales fell to their lowest level in one year – signaling a temporary end to the NFT hype. With a survey of 3,250 sports fans across the US, UK, Japan and Brazil, NRG research revealed growing fears of losing money or being scammed as one of the biggest barriers to buying an NFT.
Among the share, only 15% of respondents had full confidence in NFT markets, while 30% indicated little or no confidence in them. The survey showed that “this problem is particularly acute in Japan, where 4 out of 10 consumers have low confidence in NFT markets.”
Despite the geopolitical differences, investors from all four countries unanimously agreed on the need for stricter regulations on NFTs, taking into account factors including age restrictions and risk tolerance.
Across the US, UK, Japan and Brazil, 58% of sports fans believe they have some level of understanding regarding NFTs. Additionally, 54% (or 1755) of respondents believe that NFT has positively affected their favorite sports.
Related: Sales of NFT will finance the restoration of physical monuments in Ukraine
The Ministry of Culture and Information Policy of Ukraine has informed Cointelegraph of the government’s intention to use sales proceeds from NFTs to recover physical artworks.
According to the ministry, the proceeds from sales will go towards “the restoration of Ukrainian cultural institutions,” many of which have been damaged or destroyed amid the ongoing war with Russia.