North American organisation Simplicity Esports and Gaming Company announced plans to sell limited edition non-fungible tokens (NFTs) exclusively to members of its gaming centres.
The initiative is the result of a partnership between Simplicity Esports, Project Token, and the University of Central Florida (“UCF”) Blockchain Innovation Lab.
Crypto fan tokens have become a unique way for organisations and personalities to raise funds. In many cases, fans can exchange them for goods or collect them with the hope that they will increase in value.
Roman Franklin, President of Simplicity Esports, stated: “As we enter the summer months, we will be promoting memberships throughout the footprint. The memberships will give customers exclusive access to purchase limited edition esports NFTs.
“I see an opportunity for us to reward our members with access to unique events and items, such as NFTs as a thank you for their recurring commitment to our gaming centres. We are also in discussions with Project Token regarding other ways blockchain can make our gaming centres more secure, efficient, and beneficial to customers.”
The practice of minting and selling virtual currency is still a new concept in the world of esports. Back-to-back Dota 2 champions OG was the first esports team to offer a fan token in 2019. Initially sold for $1 (£0.72) apiece, the tokens are worth over $10 (as of this writing, according to CoinMarketCap).
Gen.G Esports launched its own crypto fan token for its Counter-Strike: Global Offensive team last fall called the GG Strike Coin. Gen.G founder and Chairman Kevin Chou is also the founder and CEO of Rally, the manufacturer of these fan tokens.
Esports Insider says: Crypto is still in its infancy in the esports sector, but if they catch on, fan tokens could prove to be a lucrative crowd-funding source for organisations outside of sponsorship. OG’s token value surge is a case study of NFT’s potential in the sector.