Another race calendar is\nunderway with excitement filling the paddock. \nTh current buzz in sports surrounds digital currencies and their push\ninto sponsorships. This month we will\nlook at that optimism and how motorsports is part of the plan.<\/p>\n\n\n\n
One may ask \u2013 what is all this\nfunky terminology. Basically, crypto is\na digital asset based on a network that is distributed across a large number of\ncomputers. <\/p>\n\n\n\n
The blockchain technology\nbehind will disrupt various industries. \nTheir advantage will be cheaper and faster money transfers. Price volatility and potential use for\ncriminal activity is a less favorable\ncharacteristic.<\/p>\n\n\n\n
Crypto exchanges and\nblockchain-based businesses are pouring money into sports like never\nbefore. The reason behind this effort is\nto acquire new customers and bring this increasingly popular digital asset\nclass into the mainstream.<\/p>\n\n\n\n
They have quickly become one\nthe largest sponsors and advertisers in sports. \nIt seems that new announcements are made weekly. Sports are embracing the category looking to\noffset substantial losses incurred during the pandemic.<\/p>\n\n\n\n
These deep pocketed companies\nare seeking to utilize the high visibility of sports to grow awareness of their\nemerging brands in a relatively new industry. \nIt can be a confusing category, so they need to create legitimacy. <\/p>\n\n\n\n
Sports fans are about twice as\nlikely to be familiar with cryptocurrency then non-fans. Those who are avid, engaged in fantasy\nleagues, and betting types top the lists as those acquainted with this\ncategory.<\/p>\n\n\n\n
They are not just looking at\nspectators, they are reaching out to industry stakeholders \u2013 leagues, teams,\nplayers, etc. Technology is behind every\nprocess of business and they want to be part of it. <\/p>\n\n\n\n
Sports betting is expanding due\nto the landmark decision striking down the federal ban of sports gambling three\nyears ago. Almost half the country has\nbegun the process of legalizing sports betting with either in-person or\nonline. There are about a dozen states\nthat have deep-seated political opposition or complex tribal relationships.<\/p>\n\n\n\n
Gaming and fantasy entities are\nspending on sports, but they are subject to regulatory approval. This may slow their adoption and be a barrier\nto entry.<\/p>\n\n\n\n
The primary digital currency\nbusiness entering sports sponsorships are crypto exchanges. These marketplaces facilitate the buying and\nselling of bitcoin, ethereum, and dogecoin. <\/p>\n\n\n\n
Similar to the philosophy\nbehind stocks, purchase them and hope the price rises and sell at a profit.\nInvesting carries risks, but volatility creates both winners and losers. <\/p>\n\n\n\n
The cost of obtaining new users\nto getting them to use the digital trading platforms via sports sponsorships\nand advertising is viewed as lower than other forms of customer acquisitions. <\/p>\n\n\n\n
Motorsports is receiving money\nfrom this space.<\/p>\n\n\n\n
The largest deal to date is\nCrypto.com. This Asian based cryptocurrency\nexchange has signed a deal with Formula 1 for $100 million over five\nyears. It recently became the naming\nrights sponsoring of the inaugural Miami Grand Prix. In return they receive\nrace partnerships and hospitality area branding.<\/p>\n\n\n\n
The opening race at Daytona International\nSpeedway brings out new backers. Several\nteams announced detail with crypto sponsors. \nThese deals will feature logos and increased visibility as the new Next\nGen cars takes the track.<\/p>\n\n\n\n
Nascar disallowed the\nprospective sponsorship of LGBcoin as the \u201cdetrimental to the sport\u201d based on\nits ties that were in political.<\/p>\n\n\n\n
The unfamiliarity of digital\ncurrency may create an initial hesitancy of those in motorsports. Time will tell if it goes mainstream but\nracing will be there as they are already in the fast lane. <\/p>\n","protected":false},"excerpt":{"rendered":"
Another race calendar is underway with excitement filling the paddock. Th current buzz in sports surrounds digital currencies and their push into sponsorships. This month we will look at that optimism and how motorsports is part of the plan. One may ask \u2013 what is all this funky terminology. Basically, crypto is a digital asset […]<\/p>\n","protected":false},"author":5,"featured_media":887,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/886"}],"collection":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=886"}],"version-history":[{"count":1,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/886\/revisions"}],"predecessor-version":[{"id":888,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/posts\/886\/revisions\/888"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=\/wp\/v2\/media\/887"}],"wp:attachment":[{"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=886"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/businessofspeed.speedwaysonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}