Evolution of the Trading Card

Remember the first time you picked up a pack of trading cards in the checkout line at the store? The thrill and mystery that came with wondering what athletes you would see on your brand new cards? 

The next day you would walk into school showing off the top card in your pack. Probably a Chipper Jones or Deion Sanders. Your peers would instantly begin offering up their top assets in order to own that Chipper card. But you knew the true value of that card. More importantly, you knew there was no way you were ever going to give it up. 

The culture of trading cards depicts a clear desire within sports fans to obtain and own the most exclusive and one-of-a-kind collectibles. This behavior is evident not just in trading card culture, but also in the alternate team jerseys and sneaker-head culture, to name a few. However, what’s most impressive is how this tradition of owning trading cards has been able to transform with modern technology. 

Technology such as NFTs and blockchain have transformed the way fans can acquire trading cards and other sports memorabilia.    

Traditional Trading Card History 

The history of trading cards can be traced back to the 1860s. The first form of a trading card, known as Cabinet Cards, were four by six inch cards typically featuring a photo of the team. At the time, these items weren’t considered to be collector’s items, rather team photos. 

The evolution of photography in combination with the rising popularity of baseball led to more defined trading cards. Peck and Snyder is credited as the first company to have began producing trading cards in 1868. These “trade cards” featured a team photo on the front and an advertisement on the back, thus giving rise to arguably the first monetization model for trading cards.

Tobacco cards took hold in the late 1860s. These cards were placed inside of cigarette packs, featuring an illustration of a player from the New York Giants. The company producing the tobacco cards, Goodwin Tobacco, was located in New York. Note, these tobacco cards were not marketed to children, but continued to monetize the trading card asset.

Modern trading cards didn’t make their way onto the market until the 1950s. The company Topps is credited for bringing about the modern form of trading cards. The first form of trading cards featured popular TV characters sold in bubble gum packs. The first Topps baseball  trading card set hit the shelves in 1951. 

The popularity of baseball trading cards led the brand to expand to other sports such as football. 

Digital Age: NFTs, Cryptocurrency, and Blockchain

The rapid change of technology expanded the fandom of trading cards to a digital realm. Topps was one of the first brands to place trading cards in digital spaces beginning in the 2000s. 

However, the popularity of virtual trading cards didn’t begin to take shape until the 2010s. Collectors began to take note of these digital assets and began investing in the online trading market. 

In today’s market, NFTs, cryptocurrencies, and blockchain technology have completely revolutionized the online trading card.

Panini blends the physical and digital card experiences leveraging blockchain technology to empower fans to buy, sell, trade or auction their digitally owned cards. Blockchain technology keeps track of all owners of the digital trading card, creating a ledger for the card. Traditional trading cards keep tabs of their past owners, in order to ensure it’s authenticity. Panini’s blockchain technology offers the same for their customers.  

The NBA’s Top Shot took the digital collectibles market further. Rather than producing a still digital card, the NBA has expanded to selling collectible highlight reels. The major innovation here is not in the technology per se, but in the sale of highlight reels. A recent analyst report found that the value of in-play clips (+76% to $1.7 billion) and short-form highlights (+101% to $3.2 billion) is expected to rise at a faster rate than the value of live rights (+18.7% to $49.1 billion) over the next five years as a direct result of this trend (changing viewing habits).  

The NFL leveraged Panini’s expertise in the NFT space for their rookie cards this year turning them into digital assets. Marquee name athletes like Tom Brady and Rob Gronkowski have also gone digital, creating and dropping NFT card collections.

Athletes Taking Advantage 

Following a trend that we’ve been tracking for a number of years, NFT technology continues to put the power in the hands of the athletes. For example, basketball player Luka Garza sold his college highlight NFTs after creating his own coding for the videos. With Name, Image, and Likeness legislation on the horizon, it’s not difficult to see a future where college athletes are able to get in on the digital trading card game as well, long before they ever “go pro.”

Image Courtesy Panini

PHOTO: NBA TOP SHOT/DESIGN: ALEX BROOKS

Quarterback Tom Brady is also getting in on the NFT trend. Brady in partnership with top technology executives are launching an NFT platform known as Autograph in recent months.

Technology has given athletes greater control of their digital assets. The trend of athletes controlling their media and digital collectibles is likely one that will continue on into the future.

The Market Moving Forward 

As the industry continues to debate whether or not NFTs are here to stay or the bubble is preparing to burst, everyone should agree on one thing. Athlete driven-media and communities will continue to thrive as technology continues to develop. As technology continues to empower athletes to build up their own brands, their fans will have new opportunities to be a part of the athlete’s world. 

Technologies, like blockchain and digital collectibles, give fans the opportunity to own pieces of their favorite players and teams. The digital marketplace has become one of the most active communities in sports and the chance to grow commerce among these communities is vast. Fans want to show off their new NFT or digital card, and when the price is right, they may even want to sell it. Blockchain technology allows these assets to guarantee safe and secure trading. 

Companies that have the technology and the ability to produce these digital commodities, facilitate the marketplace, and create that sense of community among fans will be best fit to lead the market through this digital revolution.

Sources:

https://allvintagecards.com/history-baseball-cards/

https://sportscollectorsdigest.com/cards/top-selling-sports-cards-of-all-time

https://decrypt.co/69424/tom-brady-rookie-card-sells-for-1-7-million-worth-of-litecoin