4 Groundbreaking Ways Crypto Is Smashing Its Way Into The MMA Arena
Mixed Martial Arts (MMA) is a combat sport that combines techniques from various martial arts, including boxing, wrestling, and kickboxing. It has been gaining popularity over the years, with some of the most skilled and entertaining fighters in the world competing in organizations such as UFC and One Fighting Championship.
It may seem like these two worlds – MMA and crypto – have nothing in common, but they are actually on a collision course that could revolutionize the sports industry. In this article, we’ll explore how crypto is making its way into the MMA arena and the potential impact it could have.
The Business of MMA
When we look at the business side of MMA, it’s clear that there is a lot of money involved. The UFC, for example, was sold in 2016 for a whopping $4 billion. This industry is highly profitable, and with the rise of social media and streaming platforms, its reach and revenue potential are only increasing.
However, like any other business, MMA has its challenges. One major hurdle is paying fighters. Many fighters struggle to make ends meet, especially those who are not at the top of their game or fighting in smaller organizations. This has led to calls for fairer compensation and support for fighters. After all, they are the ones risking their health and putting on a show for fans.
With inflation looming, a currency with a limited supply that is fit for today’s tough economic conditions is needed. Bitcoin serves this purpose…
The Crypto Connection
This is where crypto comes in. Cryptocurrencies, such as Bitcoin and Ethereum, offer a unique solution to some of the challenges facing MMA. First and foremost, it provides an alternative payment method that is not controlled by any central authority.
With traditional forms of payment, such as credit cards or bank transfers, there are often fees and delays involved. This can be a major pain point for fighters who need to get paid quickly and efficiently. Crypto payments, on the other hand, are nearly instantaneous and have minimal transaction fees.
After a fight, payments to their coaches, training partners, and other team members can also be made in crypto, making it easier for fighters to manage their finances and allocate funds where needed. Rather than having middle men from fans to organizations to managers and coaches and then finally to the fighter, crypto allows for direct and transparent transactions.
Fan Tokens and Community Engagement
Moreover, cryptocurrencies also offer an opportunity for fighters to earn additional income through sponsorship deals. With social media becoming an increasingly important platform for fans and sponsors alike, fighters can leverage their following by promoting certain cryptocurrencies or even creating their own tokens. This not only provides a new stream of income but also allows for more direct engagement with fans.
Fan tokens, in particular, have gained popularity in the sports world. These are digital assets that allow fans to purchase and hold a stake in their favorite fighters or teams. In return, they can gain access to exclusive content, experiences, and voting rights on certain decisions made by the organization.
This not only creates a stronger bond between the fighter and their fans but also provides a new revenue source for both parties.
$PFL Fan Tokens, minted on the Chiliz blockchain are just one example of how cryptocurrencies are being integrated into the world of sports. These tokens allow fans to engage with their favorite fighters and teams in a whole new way, creating a more interactive and inclusive experience for all parties involved.
Are There Any Fighters Already Utilizing Cryptocurrencies?
While the use of cryptocurrencies in the world of fighting is still relatively new, there are already several fighters who have embraced this technology. Kevin Lee and Francis Ngannou are two major names in the UFC who have been paid in Bitcoin for their fights. Even past legends such as Kenny Florian have also made headlines as an MMA personality that supports Bitcoin.
Only time will tell if more fighters and organizations will continue to adopt cryptocurrencies as a means of payment and engagement. Malcom Gladwell, in his book ‘The Tipping Point: How Little Things Can Make a Big Difference’ explains a sociological phenomenon that occurs when a small change can have an exponential effect, causing a «tipping point» in the way things are done.
It is possible that cryptocurrencies could be the tipping point for the integration of technology and sports, revolutionizing how fans interact with their favorite fighters and teams.
Which Organizations Have Embrace Crypto?
On top of individual fighters, some organizations are also starting to promote cryptocurrency as a major advertiser. From various smaller regional MMA organizations allowing sponsors from this industry to the UFC entering a $175 million deal with Crypto.com, it is clear that the future of cryptocurrency in fighting is here to stay.
Crypto.com co-founder and CEO Kris Marszalek expressed his excitement about the UFC deal, referring to it as a «historic moment» for both the sports industry and the world of cryptocurrency. He emphasized that this partnership would play a significant role in accelerating the global transition to cryptocurrency, revolutionizing the way we engage with sports and finance.
At Blockster, we’ve recognized how Web3 is making its way into all sorts of industries and Mixed Martial Arts is no exception. From fighters, to personalities, to organizations, the adoption and integration of cryptocurrency in this industry is only increasing. With its unique capabilities and potential for growth, it’s no surprise that many are viewing cryptocurrencies as a game-changer in the world of sports.