Major League Baseball Joins The Crypto Craze, Partners With FTX

RAMA38.MY.ID -Cryptocurrencies are clearly here to stay, and Major League Baseball wants in on the action, striking a partnership with Fantasy Trading Exchange (FTX) and allowing fans to use cryptocurrency to purchase MLB tickets, merchandise and even pay for food inside stadiums around the league. 

This move by one of America’s biggest sports leagues comes on the heels of Paris Saint-Germain joining the crypto space, with both team and player sponsorship deals struck using blockchain technology and cryptocurrency as an exchange medium.

What is Fantex?

Fantex is an online platform that allows investors to trade shares of specific athletes. In other words, it's a stock market for athletes. Investors can buy and sell shares in the player with the intention of getting profits from the athlete's career earnings. 

MLB wants in on this craze by partnering with Fantex to offer its own crypto-currency called MLB Tokens. Starting on November 1st, 2018 at 3:00 PM ET, fans can buy MLB Tokens on Fantex Brokerage Services using Ethereum cryptocurrency or Bitcoin. 

Each token will represent one share of what Fantex claims to be a series of monthly installments. The more shares purchased per month, the higher their payoff when the athlete retires. 

For example, if an investor invests $1 million worth of MLB tokens into Giancarlo Stanton's future payouts then they would receive about $150,000 per year in dividends until 2027 when Stanton retires. 

However, some critics are skeptical as to how many people would want to invest such large sums of money in something they don't understand. 

In addition, there has been no official announcement yet that Giancarlo Stanton himself has agreed to this venture. If he does not agree then the whole agreement could come crashing down before it even begins. 

Of course, his parents are involved in the partnership and have expressed excitement over the idea of him being involved in a crypto currency. We hope Giancarlo Stanton will make his decision soon so we can see whether this opportunity pans out!

What makes Fantex different from other cryptocurrency companies?

What makes Fantex different from other cryptocurrency companies is that they are the first to be publicly traded and regulated. They also offer an alternative way for athletes and celebrities to diversify their income streams in a regulated manner. 

Finally, Fantex offers traders an opportunity to gain exposure to the future value of a pre-selected group of professional athletes. For example, investors can purchase shares in Bryce Harper and potentially enjoy dividend payments as he progresses through his career. 

It’s important to note that because the company is publically traded on NASDAQ, dividends are taxed as normal income rather than capital gains (20%). 

Also, it's important to point out that each share purchased entitles its holder to 1/10th of one percent of the athlete's future earnings. 

That may not seem like much but if you're holding shares in LeBron James or Roger Federer, you could be entitled to tens or even hundreds of thousands of dollars each year! 

And finally, because Fantex has established itself with so many well-known figures, it has been able to secure sponsorship deals with other major corporations like Nike and Adidas.

How does it all work?

MLB has partnered with a company called FTX to create MLB crypto collectibles. Consumers can purchase MLB crypto collectibles in one of two ways: 

1) by purchasing an individual collectible for $2.99; or 2) by buying bundles of 10 collectibles for $2.00 each. These collectibles are digital representations of certain players or teams that can be used as avatars in video games and as stickers in social media posts to show support for their favorite team. 

After users purchase the collectibles, they can send them to friends and family members so they too can join the craze. Once these cryptocurrency-based collectibles are sent via email or text message, they will be sent from the sender’s account to the receiver’s account. 

Receiving collectors will have full access to view any player’s statistics or any team's stats at any time. Collectors can also trade with other collectors through MLB's partner site, FTX. 

When someone sends their collector to someone else, both parties will receive some credits depending on the type of trade (1 credit for sending/receiving a single collectible, 3 credits for sending/receiving multiple collectibles). Credits cannot be converted back into real world currency.

Security

This announcement from Major League Baseball is a big deal. It's the first time that a major US sports league has partnered with a cryptocurrency company and it could pave the way for other leagues to follow suit. And it's not just MLB dipping their toes into crypto waters. 

They're partnering with another respected name in the industry: Fantex. Fantex is an exchange that specializes in trading shares of professional athletes' income streams - things like sponsorships, licensing deals, and personal endorsements. 

By doing this, Fantex provides investors with an opportunity to profit by investing in these streams when they are at their peak - which isn't always when athletes are actually playing professionally. 

The collaboration between MLB and Fantex will allow MLB players to tokenize assets such as lifetime earnings or future contracts before they are traded on the FTX platform. 

According to Jon Snow, CEO of Fantex Holdings, Players have often sought alternative means to invest and protect their money outside of mainstream financial institutions. 

This partnership marks the next generation of innovation in sports, said Rob Manfred, Commissioner of Baseball. Utilizing blockchain technology allows us to explore new frontiers while protecting privacy, preserving ownership interest and ensuring liquidity. 

We believe that this is the right time to introduce our ideas and learnings in order to inform discussions around how tokens can drive change across traditional industries. 

This move also signals more serious involvement from the sports world towards cryptocurrencies. Already, earlier this year, 22 NBA teams signed up for Stripe. The service lets customers make payments over web browsers without needing any bank information.

Risks

The MLB has a history of questionable business decisions. A partnership with a relatively unknown cryptocurrency company could potentially put players in danger and tarnish the league's reputation. 

It is unclear what the specifics of the partnership are or how it will work, so this is an incredibly risky venture for such an established name in sports. In addition, there are very few details about who owns FTX - which is always cause for concern. 

The Major League Baseball just announced that they have partnered with a crypto-currency called FTX. Details about the partnership have not been released yet but that hasn't stopped many people from voicing their concerns about the decision on Twitter. 

One person tweeted It's hard to imagine any more trust being lost by the @MLB than it already has while another said As if things weren't going poorly enough for the @MLB now you're partnering up with cryptos. 

The irony is palpable. Just last year, all 30 MLB teams banned fans from wearing Google Glass during games after accusations arose that the glasses were being used to take unauthorized videos. 

And now, at a time when we need clear direction as cryptocurrency fever heats up across the world and becomes even more challenging for average investors to navigate, one of our most popular sports leagues throws us into the fire head first?

Is this really a good investment?

The crypto craze continues as Major League Baseball has announced a partnership with FTX. The MLB is one of the most popular professional sports leagues in the world with over 70 million fans in America alone, and this announcement will help accelerate the adoption of cryptocurrencies. 

However, it's not just a good investment because everyone knows what Major League Baseball is. This partnership could bring cryptos to an audience that they would never have reached before and introduce them to an entirely new industry. 

And now with more access points for these currencies, there's no telling how high the market can go. But there are also some downsides; crypto-fans aren't too happy about this move by the MLB. 

They believe that by legitimizing cryptocurrency trading, people will no longer treat it like an underground activity but instead consider it a reputable way to earn money or even something you should use to save for retirement.

Conclusion

MLB is the latest major sports league to partner with an online cryptocurrency exchange. Though it may seem weird at first glance to see a baseball player holding a Bitcoin logo on their hat, this partnership is just another example of how the MLB is always looking for new ways to engage fans. 

FTX is one of the newest crypto exchanges in the market and has already secured partnerships with two major sports leagues in less than a year. 

Last month, FTX partnered with the NBA to allow players from any team to purchase tickets through its platform. If you are interested in purchasing tickets for upcoming games, you can use the code: 'NBAFTX' and get 15% off your purchase! 

What do you think about the MLB joining forces with FTX? Let us know in the comments below or tweet us @CryptoCompare. 

What do you think about the MLB joining forces with FTX? Let us know in the comments below or tweet us @CryptoCompare. We want to know what you think about the MLB partnering up with FTX. 

Do you feel like they will only succeed because they have such a large following? Are there any other reasons that might make this partnership successful?