Fantasy sports and crypto seem like a match made in heaven. The FIFA World Cup in Russia has been used to launch a bald venture for fantasy sports fans calling itself the Crypto World Cup Event. With the decentralized nature of crypto and the World Cup’s global appeal, this is an interesting test of whether crypto works with fantasy sports.
About The FIFA Word Cup On Russia
The event will come with a prize pool, which will grow based on the number of participants. Theoretically, you could spread your bets to any of the countries on the list, like buying lottery tickets with various numbers. The teams, token symbols, and the address where to purchase tokens have been listed on the one-page site set up for this event.
The developers of this site recommend that you use My Ether Wallet or any other Ethereum wallet, which is ERC20 compatible. You are warned against using any exchange or your tokens will not arrive. There are 100 million tokens on offer for every team. Over the course of the World Cup, the price is going to increase substantially. The minimum buy-in is 10 tokens. All the payouts will be made in ETH using the address that was used to join the Crypto World Event.
For a fantasy sports event, these are quite a huge amount of restrictions. For the fantasy sports market, crypto seems like the appropriate disruptor. In 2015, the world of fantasy sports was rocked by scandal, which led to increased regulatory scrutiny. The legal fees skyrocketed as the two main players tried to merge to deal with the backlash. However, they later called it off due to a plan by the FTC to block the merger.
The Benefit of Crypto In Fantasy Sports
This is where crypto has an edge. It is not because it is better with legal issues. Rather it is because the emerging currencies designed with fantasy sports in mind are better for self-regulation. Various players have emerged on the scene.
The point is that each fantasy sport is spinning different features that will continue to evolve. The sports industry is worth billions of dollars in the US alone. However, some of the betting sites are not technically allowed to operate in the US. To avoid this legal issue, most are registered outside the US and their servers are outside the US. However, they still target US consumers.
The Future of Crypto and Fantasy Sports
It is worth noting that most of currencies purpose-built for fantasy sports offer fast transaction times. Most of them are based on the proof of stake model instead of the proof of work model. It is obvious that scalability is in the minds of leaders in the industry.
However, some issues to do with regulatory pressure do remain. The US regulators have been quite tough on ICOs and the crypto world in general. Besides that, things such as features are still an issue. However, if you are wondering whether crypto powered fantasy sports are here to stay, the answer is yes.