I love sport. Coming from a math background, it didn’t take me long before I jumped into the world of sports betting and arbitraged trades to take advantage of market mispricing – the small niche industry where meet sport and mathematics.
Today we have Web3. Working in finance and crypto, I was pushed into this industry. I thought for a while that there might be a good way here to combine elements of fantasy sports, sports betting and investing in a Web3 framework – an area that isn’t often featured in the news on cryptography.
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One company agrees with me. AllStars Digital (ASD) is a digital sports exchange that allows you to buy, sell and trade tokenized sports stars. Ahead of their token launch this week, I hosted CPO Akash Gharu on the Invezz podcast.
DSA allows you to invest in players for the long term. This makes the concept so unique unlike conventional betting. These have a binary outcome – either a win or a loss. The difference with ASD is that the payout is more like the stock market – the value of the investment fluctuates based on the player’s actual performance.
For example, let’s say I buy a Harry Kane token. If he scores a Premier League hat-trick this weekend, his value will rise. If he gets kicked out and banned long-term (hypothetically, but as a Harry Kane hater I can dream of that), his value will go down.
This payment profile allows users to speculate on the long-term future of players. Do you think Kane will be worth more this time next year? If so, you can respond to this belief by purchasing a Kane token.
I’ve been pretty honest with my analysis in the past when I said that many crypto projects (especially in the web3 space) offer minimal utility and don’t seem to solve anything. However, ASD seems to have filled a gap in the market. The target audience is easy to imagine: sports bettors, fantasy football fans, data analysts passionate about sports, etc.
Of course, launching a token in this market is not an easy task. Not only are the crypto markets suffering, but the economy as a whole is in shock (especially in the UK, where it feels like the sky is falling as I wrote about last week). I asked Akash if it was intimidating to throw a token in this environment, but he was confident – describing it as “liberating”.
It will definitely be a fun thing to follow. As a big sports fan who loves fantasy sports, sports betting and analysis, I really feel like I could have some fun with this as we head into Worlds season (I can’t still can’t believe we have a Worlds in December, but that’s a topic for another day).
I believe the sports/fantasy betting space is ripe to be revolutionized by blockchain technology. It’s hard to say how this will pan out, but it’s cool to see companies like ASD trying to make it happen.
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