The concept of non-fungible tokens (NFTs) emerged in 2015, first gaining some traction in 2017 when many prominent digital collectibles such as CryptoPunks and EtherRock were created.
NFTs gained early traction among major sports clubs, but became popular after digital artist Beeple’s artwork sold as NFTs for more than $69 million. The Beeple event caught the world’s attention and proved to be a disruptive move for the NFT ecosystem.
Today, most major home brands, premium sports and apparel brands, celebrities, sports stars and influencers have gotten involved in the NFT frenzy. While many believed that the hype and frenzy surrounding the market would become the cause of its downfall, the NFT ecosystem has seen rapid expansion beyond the digital collectibles market.
Gaming is another key industry where NFTs have had quite a significant impact, with play-to-earn (P2E) and integrated NFT rewards all the rage in 2021.. Games like Axie Infinity have become a source of livelihood for many in Vietnam, and market experts have predicted that within 10 years, most video games will have turned to P2E models.
While digital collectibles and the gaming industry have become two of the most well-known use cases for NFTs, there are several other industries where the use of non-fungible tokens is on the rise. In a prominent example, the ticketing industry is considering an overhaul by integrating NFT.
How NFTs are shaping the ticketing market
Although the ticketing market has become quite digitized in recent years, helped by the pandemic, it is highly centralized, which favors the growth of secondary and underground markets.
In today’s world, hoarders buy tickets for any concert or major event in advance, which they then sell at an inflated price in these markets, in a practice known as “scalping.”
Many times, scalpers even sell counterfeits, with no way for customers to confirm the authenticity of the tickets before purchasing.
NFTs offer proof of authenticity as they store data on a blockchain. The same mechanism can be applied by putting the tickets on a blockchain, which would guarantee not only the authenticity of the ticket, but whether it is sold by a legitimate organizer.
These NFT tickets also have the potential to tap into the secondary market for tickets.
For a long time, the secondary market has been largely inaccessible to event organizers, venues and artists. Being unregulated and speculative, it affects both fans frustrated by high prices and artists besieged by a disgruntled fan base.
With NFT ticket sales, this problem could disappear. Artists and event organizers can create smart contracts that regulate the resale of their tickets.
The benefits of NFTs can range from copyrights from resales, setting an upper or lower price limit, to including all kinds of utility add-ons in NFTs. With NFT tickets, the community gets much closer to the artist or sports team. This means that they play a bigger role in the decisions of their favorite artists or teams.
NFT entries go far beyond access. They are a collector’s item, but they can also be a gift bag for all kinds of benefits. It can be a wallet that stores the monetary value safely. You can give access to specific areas of an event or reward with a t-shirt, a hamburger, a signed poster or $100 in purchases at the concert venue.
NFTs are bridging the gap between markets for separate experiences. The same NFTs can be used to access a concert, but also be the key to your stay in a hotel, visit a nearby theme park and even the key to your rental car on your next trip.
Mike Dragan, COO of the NFT Oveit ticketing market, explained to Cointelegraph how NFT tickets are already in high demand, with a market value that can exceed hundreds of billions of dollars:
“According to our data, 18% of ticketed events are using or considering using NFTs as a way to enhance their fan experience. This number increased from just 2% in July 2021. We expect the number to increase further over the next year as technology rolls out and crypto wallets become more popular. We expect the NFT ticketing market to reach 25% of the total ticketing market by 2017, approximately $18.5 billion, in the live events industry alone. We expect a similar level of adoption, albeit on a longer time scale, in the hospitality and tourism industry.”
What is the future of NFT ticketing?
Many founders and creators in the NFT ticketing market agreed that the frenzy around NFTs among major brands has definitely helped the ticketing market attract more organizers. NFT ticketing is still an emerging technology, so there is plenty of room to grow. To find the right solution, the ceiling is as high as the industry itself, with a projected market volume of USD 94.27 billion by 2026.
Despite a rapid growth rate, the NFT ticketing industry is also facing certain challenges along the way. Colby Mort of Get Protocol, an NFT ticketing solution, told Cointelegraph that interest in exploring NFTs from customers is incredibly high, but the technology barrier remains a challenge:
“The challenge that has always existed for NFTs is the accessibility barrier to space for mainstream audiences. There is a great need for a warm introduction to space through user-friendly experiences and guidance. We believe that NFT ticketing represents a Web2.5 step between core audiences and Web3.”
Charlie Gardiner, content manager for Seatlab NFT, believes that NFT tickets have the potential to attract big players. He told Cointelegraph:
“Ultimately, as long as the process of buying and selling tickets in an NFT marketplace is frictionless, NFT ticketing platforms have the potential to unseat the big players in this industry. By integrating fiat on-ramps and off-ramps and focusing on user experience, we’re creating a future that, on the surface, works similarly to current offerings, but fundamentally improves the fan experience, increases artist revenue and controls the secondary ticketing market out of control.”
Major brands are beginning to understand the value of NFT technology and that it is not a fad. Using NFTs in the event ticketing space requires educating brands on how they can use the underlying technology for more than just digital collectibles. They already have a degree of trust and understanding in NFT technology and therefore the future of NFT ticketing seems like the next best use case.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.
