Hong Kong-based cryptocurrency trading exchange FTX has plans to acquire the naming rights to the Miami Heat home arena.
Per the report published by the Miami Herald on Friday, the derivatives exchange platform is close to signing a deal with Miami-Dade County.
FTX Moves To Sponsor Miami Heat
The report says several activities signal the conclusion of the deal as an unknown entity registered ftxarena.com as a domain name over the past week. Social media handles have also been created to reflect the change. American Airlines is currently sponsoring the 3-time champions.
FTX’s move into the sports arena is a testament to the growing adoption of cryptocurrencies in the sports world.
Neighboring teams like Mark Cuban Dallas Mavericks and the Sacramento Kings, already use Bitcoin as a payment option for fans. Mark Cuban’s Mavs went further to adopt celebrity crypto project Dogecoin to a growing list of digital assets accepted by the franchise.
The National Basketball Association (NBA) is not a stranger to crypto itself. Its 2019 partnerships with Top Shot and Dapper Labs have seen non-fungible tokens (NFTs) become a major revenue source for the fan-centered sports business.
NFTs, which allow the tokenization of almost anything, has exploded into the limelight. The NBA Top Shot, seizing on the growing NFT mania, has recorded sales in the millions of its video in-game moments. One LeBron James slam-dunk highlight pooled in a whopping $200,000.
FTX should not suffer any hiccups as Miami Mayor Francis Suarez is a well-known crypto enthusiast.
Crypto Is Gaining Ground in Sports
With the pandemic forcing many to remain indoors and socially distancing themselves, many businesses have gone under. Those that have found a way to incorporate digital assets into their business models have continued to thrive.
To keep its fans close to heart, Italian giants AC Milan, signed a deal with fintech blockchain company Chiliz to create fans’ tokens. The digital token named $ACM will allow its 500 million fans to participate in club-related activities like voting on club decisions, VIP rewards and experiences, exclusive club and sponsor promotions, and other privileges.
At launch, fans will be able to vote on a club motto to inspire their first-team players for the 2020/2021 season. Fans will need to part with $6.88 to get their own $ACM digital token.
The Rossoneri’s announcement has seen it join a host of elite football teams who use digital tokens as a way to stay connected to their fanbase. Some of them are FC Barcelona, Paris Saint Germain (PSG), AS Roma, Atletico de Madrid, Galatasaray, and Trabzonspor have also joined the digital token bandwagon.
Aside from football clubs, esports organizations like Team Heretics, NAVI, OG, and Alliance are relying on digital tokens as a way their fans can contribute towards the continued growth of the company.
Ultimate Fighting Championship (UFC) is also planning to introduce digital tokens in the coming months.