What happened
Shares of Hall of Fame Resort & Entertainment (HOFV -2.19%) soared 39% on Wednesday after the company announced a partnership with Dolphin Entertainment to create non-fungible tokens (NFTs) for NFL fans.
So what
HOFV and Dolphin Entertainment will work together to create NFTs that will allow fans to buy and sell digital collectibles based on HOFV's exclusive football-themed content. "We are thrilled to be partnering with Dolphin, an emerging thought leader in the NFT market, to accelerate our entry into the space," Hall of Fame CEO Michael Crawford said in a press release.
Hall of Fame Resort & Entertainment's stock price surged on Wednesday. Image source: Getty Images.
The company cited the "overwhelming demand" for digital art and media as one of the reasons for its move into the NFT arena. An NFT is a new type of digital asset that uses blockchain technology to record ownership and prevent duplication. NFTs can be artwork, music, and many other types of digital media.
Some of the most popular NFTs have been sports-themed video clips, such as NBA Top Shot, which bodes well for Hall of Fame's new football-based offerings.
Now what
The company could enjoy booming demand for its NFTs. Sports fans have already spent a staggering $400 million on NBA Top Shot's digital collectibles. The NFL enjoys an even larger viewership than the NBA, and it's likely that many fans will also be eager to purchase unique digital items featuring their favorite football players.
