NASCAR teams up with WAX blockchain for exclusive NFTs on Daytona 500 race day
NASCAR has collaborated with the WAX blockchain to launch a collection of non-fungible tokens (NFTs) in celebration of the upcoming Daytona 500 race. The goal is to improve the fans’ experience and appeal to a younger demographic. However, the NFTs are exclusive to ticket holders and are only limited to 500.
Ready, set, go!
NASCAR sent instructions to 25,000 Daytona ticket holders to download a WAX digital wallet to participate in the contest for a digital asset. Out of the total participants, only 500 lucky winners were chosen at random to have a chance at winning one of five autographed NASCAR drivers’ helmets.
Following Candy Digital’s partnership with the Race Team Alliance, which involves 12 NASCAR teams, to launch a collection inspired by Daytona’s race, NASCAR has partnered with WAX blockchain to release their own set of NFTs. However, the NASCAR NFTs are only available to ticket holders and are being given away for free like the latest NFT drop during the Super Bowl ads.
NASCAR struggling: can NFTs appeal to a younger demographic?
Viewership numbers for NASCAR’s last season were at an all-time low, with fewer viewers compared to the previous year’s closed-door races. According to the Sports Business Journal, NASCAR suffered a significant loss in ticket revenue, estimating a loss of $150 to $175 million in 2020. With the release of the NFT collection, NASCAR may aim to enhance the experience of ticket holders, promote exclusivity, and encourage ticket sales.
In contrast to football and basketball leagues that primarily rely on TV revenue for financial stability, NASCAR’s business model heavily depends on providing live experiences to fans. By offering NFTs to ticket holders as a keepsake, NASCAR aims to enrich the fans’ experience and focus on the sport’s core business of providing a memorable live experience.
Given that more than 40% of NASCAR fans are between the ages of 35 and 55, the sport’s audience is skewed towards an older demographic. In an effort to attract a younger and more tech-savvy audience, NASCAR has turned to NFTs to enhance the fan experience. Moreover, 40% of NASCAR fans have children under 18, and the NFT collection launched with WAX allows ticket holders to acquire a digital asset that serves as a souvenir. This move could help NASCAR expand its younger fan base.
Following the footsteps of the NFL and NBA
NASCAR’s Chief Digital Officer, Tim Clark, stated in an official announcement that fans crave novel ways to engage with brands, and offering an NFT collection is a significant move in that direction. According to him, with the buzz around the upcoming 2022 Daytona 500, NASCAR appreciates the loyalty of its fans and intends to reward them by giving out a complimentary digital collectible to mark the Great American Race.
NASCAR has adopted a tactic used by the NFL and certain NBA teams, which involves giving NFTs as gifts to ticket holders. However, the American racing league is taking blockchain technology one step further, extending its presence in the metaverse through a digital horse racing game, Zed Run, in which horses are branded with the league’s racing teams.
In the previous year, Topps partnered with WAX to launch an NFT product for MLB enthusiasts. Although the platform’s user experience was not seamless, Topps shifted to Avalanche blockchain for both Bundesliga and MLB NFTs. Recently, Fanatics, the parent company of sports NFT platform Candy Digital, which had partnered with several NASCAR teams, acquired Topps.
