Opinion: James Newman, Chief Corporate Officer in Chiliz
The perception of blockchain, especially for people outside the industry, was often driven primarily with stories about extreme variability, bad actors and speculations.
In the last months of the industry, they have been dominated by narratives around the height and then the fall of Memecoins such as Hawk, Fartcoin and Wagra. The scrolling until 2021 and without a real exploit case, a massive noise around non -financial tokens (NFTS) has not translated into long -term success, with the average NFT project today has 2.5 times shorter than the average cryptographic project.
However, for many, the attractiveness of these assets is their volatility, transforming a few dollars into a fortune overnight. While NFT and memecoins are undeniably part of the web3 culture, what maintains projects, maintains users’ involvement and drives the industry, is not a variability, but ensuring real solutions to problems in the real world. Ultimately, it’s about usefulness.
Usable drives stability
Many blockchain projects fail, because these are solutions looking for a problem, not solving the existing one. Assets that do not offer utility at all will not be more than the instant moment of unstable speculation. While digital resources still exceed the boundaries of technological innovation, human needs and physical value remain constant. In addition, the utility of digital assets promotes stability by rejecting focusing from brief -term speculation to significant commitment.
When assessing the stability of digital assets, its longevity is much more persuasive than brief -term price fluctuations. Variability is an integral part of cryptocurrencies, but the exact measure of immunity is whether the project can survive in market cycles. Fan tokens showed this stability, while the NFT-Pomimo of the initial boom-mainly applied to maintain long-term value outside the speculative noise.
While Memecoins certainly generate noise, their longevity is fleeting. 97% of Memecoins introduced in 2024 have already failed. Of course, there are exceptions, but the overwhelming majority did not survive the time test.
In contrast, sports clubs have been spending tokens of fans since 2018, working into both bulls and bear markets. Their resistance comes from utility – fans tokens are constantly evolving to get acquainted with fans, bringing fans and clubs.
Solve problems, create value, determine longevity
The connection between usability and stability is clear. Digital assets that solve real problems support a balanced party. Instead of attracting speculators who hope for quick profits, media -powered resources bring users with a real need or interest in the project.
The enhance in Stablecouins emphasizes the importance of utility.
Last: fToxes offer stability – NFT do not have
Over the past six months, Stablecoin market capitalization has increased from $ 160 billion to $ 230 billion. According to Despread ResearchIn 2021 there were 27 Stablecoin. Until July 2024, there were 182, which is a 574% growth rate in three years. Reason? Stablecouins provide users with true utility, regardless of whether you are the owner of a petite company who wants a transaction over borders or a developer looking for liquidity for a decentralized financial protocol (DEFI).
Another indicator of the utility of assets is the institutional adoption. Simply put, Blackrock invests in Bitcoin (BTC). Offers BTC (ETFS) rotary funds-not Fartcoin-institutions, priority, treat resources with a documented history of creating physical value for their clients in relation to a short-term, noise-filled speculation.
For sports fans, emotional connections with their teams run deeply – even if they never set their foot at the stadium of their team. Fan tokens fill this gap and exploit this emotional relationship, offering fans more ways to get involved in their teams through direct participation and prizes – no matter where they are in the world.
Regardless of whether voting in the team’s decisions, access to exclusive offers, setting tokens of fans for additional advantages, or simply having a piece of digital identity of the team, tokens of fans ensure usefulness through their life cycle.
The future of digital assets
To bring him a full circle, the original vision of Satoshi Nakamoto for Bitcoin was the solution to the problem: a dishonest financial system. 16 years later, despite many applications of blockchain technology, it remains the reality of assets.
The future of digital assets will be defined by their ability to solve real problems that are recognized by the clubs themselves. That is why they not only spend tokens of fans – they actively grant their intellectual property rights to strengthen the trust and credibility of assets. When some of the most iconic sports brands in the world in this way include blockchain technology, it is a clear signal that the next era of fans’ involvement is not on the horizon – it is already here. We are just starting.
In addition to tokens of blockchain fans, it transforms the sports industry into many dimensions, and each exploit of exploit is becoming more and more related. Take the last Tether investment in Juventus. The enhance in the price of Juventus fans emphasizes how deeply blockchain and crypto intersect in various investments, sponsorship and involvement of fans. Thanks to the sponsorship of cryptocurrencies in sport in 2024, this convergence will accelerate only as clubs, leagues and brands explore fresh ways of using Web3 technology – creating richer, more interactive experiences of fans, while unlocking fresh revenue streams.
Opinion: James Newman, chief officer of the Corporate Affairs in Chiliz.
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
