The Ultimate Fighting Championship (UFC) and blockchain platform VeChain have partnered to tokenize fighter gloves and use the VeChainThor network to track fighters’ identities.
The business announced in a recent blog post that VeChain near-field communication (NFC) chips will be incorporated into the gloves worn by UFC competitors. This would allow for the recording of combat data and guarantee the authenticity of each pair.
The gloves will become valuable collector’s items after the fights when they are donated and distributed.
Using a VeChainThor network smart contract, buyers may confirm the legitimacy of these gloves.
Tokenization on VeChain to Address Fraud Issue
Through this partnership, the problem of fraud on the secondary market—where buyers frequently want to own gloves used in particular fights—will hopefully be addressed.
Tracking and delivering things to the right people can be made easier by using VeChain’s ToolChain system, a supply-chain management tool.
A-list celebrities, like as Joe Rogan, will get the first batch of 12 unique gloves when UFC CEO Dana White makes a live announcement about the relationship.
On the platform’s Reddit board, the VeChain community has responded with a range of opinions.
Several people were excited by this new use case, emphasizing how it could be possible to mint gloves made of real assets as non-fungible tokens (NFTs) for each UFC event.
Others applauded the notion of tracking items and proposed adding QR code scanning to live events, which would increase the rate at which VeThor (VTHO) tokens burn.
Not everyone in the community, though, found the announcement to be impressive.
The main argument against the gloves was that their transaction fees wouldn’t burn through enough VTHO to make a big difference in the token’s price.
Based on Coinmarketcap data, VeThor’s market capitalization as of April 12 was approximately $283 million, placing it among the top 300 cryptocurrencies worldwide.
The VeChain Foundation declared to have $1.2 billion in cash on hand in May 2022.
In June of the same year, VeChain and the UFC signed a $100 million sponsorship agreement, securing their joint venture within the mixed martial arts promotion.
Tokenized Funds Are Getting More and More Popular
Leading investment risk assessment company Moody’s stated in a research earlier this year that the increasing tokenization of US Treasury bonds was the primary reason behind the value of tokenized funds rising from $100 million at the start of 2023 to roughly $800 million.
The research made clear that different assets are being added to both public and private blockchains.
A few prominent instances are the expansion of Franklin Templeton’s U.S. Government Money Fund from Stellar to Polygon, the introduction of an Ethereum-based tokenized money market fund (MMF) by UBS Asset Management, and the launch of an exchange-traded fund (ETF) for short-term U.S. Treasury bonds by Backed Finance.
Moody’s claims that MMF tokenization offers the chance to combine stable investment products with stablecoin technology.
The debut of DigiFT’s US Treasury bill depository receipt (DR) tokens was also announced last month by the fintech business based in Singapore.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
