Visa’s dive into NFT markets was driven by an evaluation of the underlying technology and its capability to serve as a “promising medium for fan engagement,” based on a recent whitepaper published by the global payments giant.
The publication described NFTs as an significant innovation during the pandemic, where strict pandemic rules limit live sports, entertainment and music festivals. At the same time, NFTs are emerging at a time when fans are eager to join digital communities centred around their favourite artists or sports teams.
Professional sports were hit especially hard by the pandemic, with an estimated $18 billion loss of revenue across major leagues worldwide. According to Visa, this further drives the “necessity to diversify revenue and focus on technology to reposition businesses for growth opportunities and to capture the attention of the fans.”
The whitepaper was released along with an announcement from Visa that it had purchased its first NFT (CryptoPunk 7610) for $150,000. CryptoPunks is a collection of 10,000 unique NFTs with proof of ownership stored on the Ethereum network. A total of 2,519 CryptoPunk collectibles were sold in the past 30 days, netting a combined $467.4 million, according to industry sources.
Visa’s venture into NFTs is hardly surprising, given the payment company’s growing focus on digital assets. The company recently entered into an agreement with digital asset platform Zipmex, providing further crypto payment integration in the Asia-Pacific region
