Everyone has heard of cryptocurrency this year, and many may have heard of NFTs. You might even have come across the boom of sports cards investments, which has brought back the nostalgia of the 80’s. Sorare brings all three ideas together - online football cards (NFTs) backed by blockchain technology that can be purchased with Ethereum. With a Unique (1/1) 2020-21 Cristiano Ronaldo bought for $289,920 this week, it seems like this ‘game’ is here to stay. But what is it? Should investors look to Sorare for investment returns or is it just a game? And why should you consider getting involved?
Sorare is ultimately a 21st century Panini sticker book, with users owning a portfolio of football players in their gallery. Each user starts with ‘common’ players that are gained for free, and then you can start to build your gallery through either buying players through a public auction, the secondary market (buying players for a set price) or through winning cards in ‘SO5.’ SO5 is the fantasy football element of Sorare, where you simply choose a team to score maximum points in exchange for prizes - and it is the part of the platform I have found most enjoyable so far. You can check out the platform yourself here.
Understanding Card Rarities
Card rarities are key to Sorare. They determine the scarcity of cards, and the utility of a card in SO5.
Rare cards are limited to 100 copies per user, super rare cards limited to 10 per user, and unique cards limited to one per user.
Each card then has bonuses, which are used for the scoring of SO5 tournaments that give out prizes. The main bonus is associated to the card rarity, with bonuses also accrued through XP which grows as you play the game. These bonuses increase a cards utility due to the tournament feature, which is explained below.
Card Utility – A Game or Collectibles?
Clearly, the rarer a card, the more sought after that card is. However, Sorare’s tournaments add a whole new dimension to the market value of any given card.
Sorare’s tournaments let users build a 5-a-side team and compete in divisions that are split into regions and skill level. There are gameweeks every week that users can enter, in which they compete against people within their division (with new users starting in division 5 and slowly climbing up the ranks).
The aim of SO5 tournaments is to get the highest points score possible. Without going into detail, you want to pick players that always play & have an impact on games in real life. With leagues ranging from Ligue 1 to the J League, there is plenty of opportunity to find hidden gems for cheap prices and win tournaments, and this is what makes Sorare different. If users do their research on players in obscure leagues, perhaps leagues out of season, when these players start picking up points, they will shoot up in value, and users can secure handsome investment returns.
Rewards for tournament ranks vary. For example, in Global All Stars Division 4, you win 0.02 ETH for hitting a certain threshold score that is very achievable. Additionally, elite players can win in the region of five rare cards a week, leading to potentially £1000 rewards every week. This, alongside the increasing value of your cards, shows the potential of the platform.
Beyond the tournaments, there are cards like Maradona that seem to just be collectibles. However, Sorare has said that they will be available for use in tournaments to come, showing that Sorare intends to produce a wide range of content.
Why is Investing in Sorare Worth Considering?
Returns on Sorare cards have been huge if you were an early user. Cards have increased by 10,000% in some cases, with the average price to pick up a team of rare cards currently sitting at about £700.
Of course, people will say that they have ‘missed the boat.’ However, even today, small players are giving high returns due to a present surge in demand. Kim Gi-Yeol sold for 3.88 Euros on 6/20/2020, on 3/13/2021 he sold for 71.49 Euros, and today he just sold for over 200 Euros. In three days, a user nearly tripled his investment on an unknown player who is in demand due to his performances. This shows that with research the opportunities of this platform are endless, if you get in early, triple digit returns are still possible.
This is an interesting opportunity for sports fans, and with GaryVee’s backing, it seems that digital assets are the future. The high price point may put people off (minimum 31 Euros per card at present), however, Sorare has confirmed they are working on lowering prices so that everyone can enjoy the game. If you are into football, enjoy investing, and have faith in crypto/blockchain, this is for you.