There are plenty of industries that are becoming hip to the non-fungible token (NFT) trend. However, nobody is doing it quite like the sports industry. Across the whole sea of NFT marketplaces, it’s impossible to not stumble onto some sort of sports-related token for sale. And now, larger and larger companies are starting to warm up to the market. That’s because they are starting to see it as a lucrative place to earn some capital. Sports betting outfit DraftKings (NASDAQ:DKNG) is one of the largest companies to leverage NFTs as a new area of profit, and its recent news stands as a point of excitement for holders in DKNG stock.
DraftKings is one of the earliest major adopters of NFT tech. The company launched its DraftKings Marketplace in August, exposing sports fans to a variety of NFTs at different price points. This month, it is ramping up its presence in the NFT realm with weekly drops. Last week saw the company release a serious of increasingly rare tokens representing Olympic legend Usain Bolt.
The company is slyly tapping in to sports culture’s emphasis on memorabilia and collectibles. Having an autographed ball or jersey is a hallmark piece of any fans collection; it’s a practice that is so ingrained in the culture of sports, it’s immortalized in pop culture. Think of how blasphemous it was that Scott Smalls decided to play backyard ball with a Babe Ruth-signed baseball in The Sandlot. Sports fans love a unique trinket, and DraftKings is offering the same thing for the digital age.
DKNG Stock Looks to Lever Itself Higher With Athlete NFTs
Today, DraftKings is looking to keep things rolling. After the Usain Bolt NFTs speedily sold out last week, the company is now preparing to launch its Rob Gronkowski NFTs. These tokens will be the first ones launched by DraftKings in collaboration with NFT platform Autograph. Co-founded by Tampa Bay Buccaneers quarterback and longtime Gronkowski teammate Tom Brady, there’s no better collection to begin this effort with than one celebrating the lauded tight end. And naturally, the Autograph partnership is adding to excitement over DKNG stock.
What’s very interesting about these NFTs is that they are not bought with crypto; as it stands now, DraftKings only sells its NFTs using USD. This makes the barrier to entry quite low for those new to blockchain tech, as they won’t have to make any crypto purchases to buy these collectible assets. The tokens begin dropping this afternoon starting at 3 p.m., and they will continue to drop throughout the week. Given the success of the Usain Bolt tokens, these NFTs are likely to sell out very quickly.
The move isn’t catalyzing tremendous gains for DKNG stock just yet, mind you; the stock is currently up just under 1% this afternoon. Rather, DraftKings is adapting to the burgeoning industry and adding to its fundamental value. That makes it a strong play for the long term. Investors should be keen to watch DKNG stock as it continues diving into this market.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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