The private football association FIFA has launched an NFT platform just in time for the upcoming World Cup. But how can this platform be used? And how does it differ from other NFT trading platforms? And how are non-fungible tokens traded there?
Not much is happening in the NFT market at the moment. The well-known trading platform “OpenSea” has already lost 95% of its trading volume since January. Apparently, the main reason for this is the high inflation rate caused by current world events such as the pandemic, the war and the climate crisis, as well as the recent crypto crash associated with it. Although Bitcoin and Co. have recovered from their lows, there is still no sign of a rebound to highs. Therefore, NFTs as an investment, but also for collecting purposes, have had to lose a lot of interest. Now, with FIFA+ Collect, there is a project on the market that should bring momentum back.
Non-fungible tokens briefly explained
A non-fungible token, or NFT for short, is an indivisible object of value in digital form. Token can also be translated as token and non-fungible as non-exchangeable. An NFT cannot therefore be replaced by another and is also clear and verifiable. Non-fungible tokens can be purchased with crypto and then stored in one’s own wallet – a digital wallet. Trading takes place on the decentralized blockchain, just like in the case of cryptocurrencies. Crypto like Bitcoin and Co., on the other hand, are fungible. This is comparable to real coins: a €1 coin is worth as much and looks exactly like any other €1 coin. The same is the case with Bitcoin and other digital coins. However, since NFTs are unique and of varying value, they cannot be traded one-to-one.
Non-fungible tokens are handled primarily as digital works of art for collector’s purposes. But they have not only revolutionized the world of art, but also completely other areas, such as the world of games. NFTs are used for play-to-earn projects, where you can earn crypto during the game, or are used in the representation of digital property, such as in the game “Decentraland”. Furthermore, NFTs can represent one’s digital identity or serve as another monetization method for content creators on social media platforms on Web 3, the new generation of the Internet. And these are just a few examples of the areas where and for what purposes non-fungible tokens can be used.
Previous NFT trading platforms
There are already some trading platforms for NFTs in the market. The best known include NFT LaunchPad, Binance and OpenSea. They primarily serve the purpose of buying or selling non-fungible tokens. “NFT LaunchPad” is very beginner friendly and makes transactions fast, secure and easy. Registration is not necessary and as a growth-oriented NFT buyer you will find new, promising projects with great future potential. The NFT marketplace Binance is also suitable for beginners, especially art lovers. The platform comes with two auction events called “Genesis” and “Mystery Box Series 1”. However, you will not only find artwork there, but also collectibles and NFTs from the gaming and entertainment categories. A variety of digital assets from the fields of art, games, music and domain names are available on the NFT trading platform “Opensea”. Although the exchange was founded for the “CryptoKitties” NFT collection, it quickly became clear that it offered potential for all NFTs. Smart contracts provide security to users when trading non-fungible tokens.
The FIFA platform for the World Cup
FIFA+ Collect is the name of the new NFT platform designed to allow fans to own and collect moments from the 2022 FIFA World Cup. Famous artwork and images from the FIFA World Cup and FIFA Women’s World Cup will also be available. The platform has been available since September and should be affordable for all football and NFT fans. It is available in English, French and Spanish and can be accessed from various web and mobile devices.
FIFA+ Collect can be compared to the existing platform “NBA Top Shots”. Digital basketball professional league trading cards are traded on it. Special moments of a player or game are depicted on the NFTs. This is exactly what the NFT platform from FIFA will enable for the World Cup. The NFT series is created by BIB Meta, a Metaverse ecosystem. During this year’s World Cup hype, BIB Meta will pave the way for the adoption of Meta-Fi by launching a series of NFTs commemorating the 2022 FIFA World Cup. The Football Moments NFTs can be minted, bought, sold and traded on the platform. According to the BIB Meta whitepaper, users can purchase the NFTs for the 2022 FIFA World Cup, which represent real players. You can then pit them against each other in a variety of ways to earn money. Some of the players’ NFTs are from Fantasy Sports, some from Magic: The Gathering, and some from FIFA Ultimate Team. In addition, the BIB Meta World Cup 2022 NFT Series program allows users to connect with their favorite soccer players through a global community and direct communication channels and access exclusive events online and offline.
Cooperation with Algorand
Blockchain Algorand has found one of its biggest collaborators in FIFA. It was already named a blockchain by the Football Association in June and is one of the carbon neutral blockchains. Algorand demonstrates a proof-of-stake blockchain cryptocurrency model. The process-of-stake process allows the blockchain network to determine which user is allowed to create the next block in the chain. This happens randomly, but takes into account those users who have proven themselves with long participation time or high net worth. Therefore, Algorand has its own cryptocurrency called ALGO, but payment with other methods and currencies is also possible there. Blockchain is already being used by over 2000 organizations, public authorities and decentralized economy users.
With the new NFT trading platform FIFA+ Collect, the private football association wants to bring life back to the market. Interest in NFT lovers should rise again and give them new motivation. But the digital collectibles also offer soccer fans a great new opportunity to pursue their passion. NFT and soccer enthusiasts will have the opportunity to collect and exchange unique moments from the soccer World Cup. Because that is exactly what FIFA+ Collect offers: a digital representation and trading of special moments of football matches during the World Cup 2022 in Qatar. In this way, the memory of the unique experience can be kept alive in the long term.
Author Jacqueline Lehmann is Manager of Crypto Assets at Green Capital und Beteiligungen AG. She has many years of experience in crypto and fintech and was able to acquire extensive know-how in these areas. https://www.greencapital-b.ch/digital-assets/