What happened
Shares of DraftKings (DKNG -0.87%) popped 13.6% on Wednesday after the daily fantasy sports contest and sports betting company announced a larger move into non-fungible tokens (NFTs).
So what
DraftKings debuted the Primetime NFT Series ahead of the college basketball national tournament. It represents the company's first fully in-house launch of collectible NFTs, which represent ownership of digital assets.
Image source: Getty Images.
"DraftKings is already deeply embedded within the biggest moments in sports, and the new Primetime NFT Series will further drive engagement while also providing rewards that bridge to our gaming offerings for the first time," co-founder and president Matt Kalish said in a press release.
NFT collectors will be eligible to receive site credits they can use to play daily fantasy games and place sportsbook wagers. DraftKings also plans to reward some NFT buyers with airdrops and priority access to future collections. Additionally, it intends to auction its most exclusive NFTs on its digital marketplace.
Now what
The Primetime NFT Series is DraftKings' latest push into the booming digital asset market. In December, the company announced a partnership with the NFL Players Association to launch an NFT-based game.
"The future of fandom is unfolding in front of us, and few organizations beyond DraftKings are as equipped to capitalize on the increasing intersection between sports and NFTs that will be cornerstones of engagement and entertainment within Web3," DraftKings senior vice president Beth Beiriger said at the time. Web3 is a term used to describe a new version of the internet that's based on decentralized blockchain technology.
NFTs and Web3 initiatives are relatively minor portions of DraftKings' business. Still, they could help to bolster its engagement and retention metrics should they prove popular with its customers.
