Visa Whitepaper Says NFTs Are A “Promising Medium For Fan Engagement”

Spotlight

  • Visa’s impact on the NFT market stems from an overview of the platform’s technology and its ability to serve as “a promising medium for fan engagement”.
  • According to Visa, there is a “need to diversify revenue and focus on technology to reposition businesses for growth opportunities and to capture the attention of fans”.
  • Recent reports say that the total NFT sales are likely to surpass $900 million in August alone. This will set a new industry record.

Visa’s Whitepaper Describing NFTs

According to a recent report announced by the global payments giant, Visa’s impact on the NFT market stems from an overview of the platform’s technology and its ability to serve as “a promising medium for fan engagement”.

On the 23rd of August, a post describes non-fungible tokens as a major innovation in times of a pandemic. This is great innovation when strict shelter-in-place demands limited live sports, entertainment, and music festivals. Parallelly, NFTs are emerging at such a time when all the fans are eager to join digital communities. These communities target their favorite artists or sports teams. In particular, even professional sports now suffer because of the pandemic. Market estimates show that they had losses in major leagues around the world amounting to about $18 billion.

According to Visa, this further fuels the “need to diversify revenue and focus on technology to reposition businesses for growth opportunities and to capture the attention of fans”. According to this report, “NFTs appeal to collectors, fans, teams, leagues, and talent”. Particularly, NFTs can become a major source of fan engagement in this space, customer relationship management, as well as bringing a lot of new revenue streams. The major use cases of NFTs can include collectibles, art, and games.

NFT Sales Hitting New Industry Record!

Visa released this whitepaper at the same time when it announced the acquisition of its first NFT, CryptoPunk 7610, for $ 150,000. CryptoPunks is a collection of only 10,000 unique NFTs. They are with proof of ownership and are stored on the Ethereum network. According to industry sources, in the last one month, around 2,519 CryptoPunk collectibles have been sold, generating a total of $ 467.4 million. During this period, the biggest sale was of CryptoPunk 7252, which sold for 1,600 ETH, or $ 4.5 million. In addition to the CryptoPunk craze, NFTs in other niches are also gaining popularity.

Recent reports say that the total NFT sales are likely to surpass $900 million in August alone. This will set a new industry record. With total NFT sales hitting $255 million, the cryptocurrency market hit an all-time high in May before undergoing a multi-month correction. Visa’s entry into the NFT is not surprising given the payment company’s gradual increase in focus on digital assets. Visa recently signed an agreement with Zipmex. Zipmex is a digital asset platform. Visa further wants to integrate crypto payments in the Asia Pacific region.

Also, in January this year, Visa reaffirmed its commitment to creating crypto payments and expanding access to fiat currencies. It will do so to support the digital asset class.