Golden State Warriors And FTX Sign Crypto And NFT Partnership: What Investors Should Know

A National Basketball Association team and cryptocurrency platform are teaming up for a first-of-its-kind partnership.

What Happened: The Golden State Warriors and FTX announced a partnership Tuesday. The deal will have FTX as the official cryptocurrency platform and NFT marketplace for the Golden State Warriors.

The deal is the first international rights partnership for the Warriors. FTX will have a market presence with logos and likeness for the Warriors in all territories.

“The FTX U.S. NFT Platform will provide a leading, safe and secure venue for the Warriors international fan base to access exclusive collectibles from the franchise,” FTX U.S. President Brett Harrison said.

The Warriors will launch new non-fungible tokens on the FTX marketplace in early 2022. The Warriors were the first team in sports to do an NFT drop with its Legacy NFT Drop, according to the release. The Warriors sold NFTs that featured its NBA Championship rings and commemorative ticket stubs.

The Warriors sold a one-of-one World Championship Ring NFT for 285.111 Ethereum ETH/USD, or around $871,000.

FTX will have logo placement with the Warriors, its G League affiliate the Santa Cruz Warriors and the Warriors Gaming Squad, the Warrior’s NBA 2K League team.

“Cryptocurrency has a well-established worldwide community and is going to continue to be a major part of the sports, media and entertainment industries,” Warriors President and Chief Operating Officer Brandon Schneider said.

The Warriors and FTX are also gifting three Bitcoin BTC/USD to three non-profits that address educational equity as part of the partnership: Self-eSTEM, Mission Bit and Techbridge Girls.

Related Link: 3 Life Lessons From Chamath Palihapitiya's Hugely Successful Golden State Warriors Investment 

Why It’s Important: Sports teams have been one of the hottest markets for cryptocurrency and NFT deals in recent months.

Teams can increase their fan engagement with NFTs and companies see a fan base that may not have invested in cryptocurrency or NFTs year.

“In our conversations with FTX, we quickly realized our joint desire to innovate around cryptocurrency integration and adoption, including the role NFTs play in global fan engagement,” Schneider said.

FTX landed a naming rights deal with the Miami Heat for their arena, costing an estimated $135 million. FTX also shelled out $17.5 million for a 10-year deal with Cal Athletics for the naming rights to California Memorial Stadium.

Rival Crypto.com paid $700 million for the naming rights to the Staples Center in Los Angeles, home of the Los Angeles Lakers and Los Angeles Clippers.

Photo: Markus Spiske via Unsplash