Sorare has just acquired a $680 million investment!!
NFT’s are quickly becoming the next big thing in both the gaming and investment marketplace.
This innovative company has put in place a platform to trade NFT’s on the Ethereum Blockchain of your favourite teams and football players.
If you are like me and remember the days of trading your footballer sticker collection in the playground to try to get your favourite player, this is the site for you.
This product allows for both the investor and gamer in me to both be satisfied, I can choose what looks like a good purchase for the long term by for instance buying a young up and coming under 21 player like Harvey Elliot from Liverpool who’s tipped for a big future.
If he goes on to do well the value of his NFT will increase making me a return on investment, I can also diversify my investment by holding players in either the established player category for example Marco Verrati from PSG or the early development categories in all major leagues and across many teams, as I would do if constructing a portfolio of shares.
This diversification is important like with any investment because if one part of your portfolio is taking a hit (for example Harvey Elliot were to get injured) then the rest of my portfolio has the chance to make up for that. Never have all your eggs in one basket is as true today as it was when you heard it as a child.
Sorare not only allows you to do that, but it also lets you put together teams from your purchased cards to compete against others worldwide in a fantasy football 5 aside competition.
So, Whats in it for me?
In real terms for all you potential investors out there you can benefit in 2 ways from your NFT purchase.
- The value of the players is based on their performances in the 5 aside fantasy league set up (has a very detailed scoring system per player type) and so if you purchase wisely the value of your NFT can be boosted with a move to a top team or good regular performances, this increases their resale value on their internal auction market.
- You can enter your teams in various leagues to allow you to be able to win prizes in terms of both Eth and new player cards for placing at a level for that game week. These leagues have levels to them so you’re not up against all the top guys in every league.
If you spend some time on your purchases and selection of teams this will allow you to make a regular return on investment. This is like how you would get interest on a bank account or a dividend on stocks and shares.
However, unlike the older type investments, this is skill based and your return can be maximised by your skill and time investment. Inversely it must be remembered that if you neglect to take advantage of this 5 aside league process you are reducing your potential for returns.
NFT’s are like any other investment as the value of them can rise and also fall and it is essential that a good overall strategy you should only look to invest capital that is surplus to your normal everyday needs and short-term requirements when investing for the medium to long term.
This is only a first look at what Sorare has to offer and a short explanation of how it works, if you would like more in-depth content and discussion on Sorare, its scoring system and what it involves please subscribe and ask questions in the comments section and I will give a fuller breakdown of your desired content in the future.