- Sorare is a fantasy football platform developed by Nicolas Julia and Adrien Montfort in 2018. The platform enables players to buy, sell, trade, and manage a virtual team using digital player cards on the Ethereum blockchain.
- Sorare makes money by the issuance and sale of new NFT playing cards on its platform, with auction prices starting at around 0.004 ETH. The final price an NFT sells for is determined by the scarcity of the card and the player featured on the card.
- Sorare increases revenue and profit potential by minting new NFTs on Starknet, where transactions are bundled to reduce the cost per minted card.
Sorare is a fantasy football platform developed by Nicolas Julia and Adrien Montfort in 2018. The platform enables players to buy, sell, trade, and manage a virtual team using digital player cards on the Ethereum blockchain.
In late 2017, Julia and Montfort discovered NFTs which enabled the creation of scarce digital items. The allure of NFTs struck a very personal chord with Julia, who noted that “We as human beings have been collecting things for centuries in the physical space. With NFTs, there is now the possibility of collecting something digital.”
Sorare is a fantasy football game where NFT collectibles are based on real-world football players and clubs. Securing licensing deals with these clubs was a boon for the co-founders, especially when one considers that Sorare was an unproven start-up operating in an industry shrouded in misconception and complexity.
To play the game, participants need to own NFT cards which range in abundance from limited to rare, super rare, and unique. These cards are acquired via packs sold by the company or on a secondary marketplace by owners who auction them off. The ability to use NFT collectibles in a competitive environment is what differentiates Sorare from similar platforms.
Users can join a variety of different leagues, including those designed for rookie players or region-focused tournaments. On game day, the user assembles a team of five with points awarded based on the real-world performance of each player. The team that receives the most points is the winner and may themselves be awarded with Ether or rare cards.
In September 2021, Sorare raised $680 million in Series B funding to be worth $4.3 billion. The platform now boasts 228 officially licensed football clubs.
Sorare revenue generation
Sorare makes money by the issuance and sale of new NFT playing cards on its platform.
While the cost of minting new NFTs for thousands of players might be considered prohibitive, Sorare runs on the Ethereum L2 network Starknet. This allows the company to bundle many transactions together and reduce the cost per minted card.
Playing cards can be purchased in a few different ways:
- New signings – where cards have been minted by Sorare and listed for sale without any previous owners. These cards are sold in an auction system, with prices starting at around 0.004 ETH or approximately $16. How much the company makes from minting new NFTs is determined by their scarcity and to a lesser extent, the player who is featured on the card.
- Transfer market – where players purchase from other players on a secondary NFT marketplace. At the time of writing, Sorare does not make any money in this space. The company even covers the gas fee and, in some cases, has reduced the fee to zero to improve the user experience.
- Direct offers – new cards can also be acquired by approaching other players directly and making sending them an offer on one of their team members. Sorare does not yet have plans to charge a fee for facilitating this transaction.
Connected Business Concepts
Main Free Guides: