DraftKings with UFC has agreed to develop fighters NFTs that will connect to fantasy games and sports betting opportunities in the evolution of the company’s blockchain -based offerings.
The new product will be part of the DraftKings Reignmakers line, which started in football agreement with the NFLPA. The first UFC NFT is expected to go on sale this summer, with the NFT -based game launching later this year.
In February, the UFC and Dapper Labs opened a different NFT collection, UFC Strike, which is approaching $ 10 million in total sales volume according to Cryptoslam! data.
“We expect fans to be able to embrace the product because they are first -time users and users of the technology,” said UFC SVP, global consumer product Tracey Bleczinski. “So we see, and we also see people participating in sports through these products.”
With the price of cryptocurrencies and NFTs falling this spring, May brought the lowest total sales volume since its launch.
Financial details of the multiyear DraftKings deal have not been disclosed, but Bleczinski said the athletes will receive half of the license revenue generated, with individual fighter shares determined by the popularity of a particular NFT.
“We’re talking to a lot of partners in the evolving technology space,” Bleczinski said. “Something that can be seen is: How can we successfully enter the evolving technology space, but in a way that will be evident in the future … all the boxes on what’s important to the UFC when we find partners.
Based on the rare level of digital goods, Reignmaker NFT owners will be able to compete in special fantasy contests for a variety of prizes, including additional-yes-NFT.
When designing the experience, DraftKings took inspiration from physical memorabilia and games like Magic: The Gathering. “They have a lot of built -in complexity and a lot of pullable levers as an operator that can create an enjoyable experience,” said Beth Beiriger, SVP of product operations for DraftKings Marketplace.
Fighter NFTs will also run other benefits for their owners, including odds for certain sportsbook wagers.
“We’re going to have emerging fans who are passionate about playing the game, and we want to make sure … the experience is top -class,” Beiriger said. “But we also know that there are users who will sign up and want to collect this NFT because they have an affinity with the fighters, or they might be more inclined towards us. sports betting product. What we’re doing, in partnership with the UFC, is finding a way to make these gamified NFTs really talk to, and engage, a number of different cohorts depending on how they want to engage the DraftKings ecosystem.
The plan is for DraftKings to create a new collection every year, and the company will track initial interest in the product to adjust supply if needed. “This is one of the things we’ve discussed at length: how do you balance the number of shortfalls with an unknown factor about the number of people who want to sign up,” Beiriger said. “When users appear, we’ll make sure there’s enough supply for them to participate, but be smart about this so we don’t flood the market and dilute anything.”
Beiriger added that the company has “active conversations” with other leagues as it continues to build Reignmakers. “The level of investment is definitely high,” he said. “This is a pillar that we focus on.”
