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By @foxsports via FOX Sports,
Key points:
- Digital loopholes in NIL rules allow for direct payments to college athletes through non-fungible tokens
- Fans can support athletes by sending money through an app and receiving a unique piece of art in return
- Concerns exist regarding potential misuse and lack of regulations in the pay-for-an-NFT model
Digital loopholes in NIL rules are allowing college athletes to receive direct payments from fans through the use of digital non-fungible tokens (NFTs). As part of the new name, image, and likeness (NIL) guidance, fans can send money to college athletes through platforms like myNILpay, and in return, receive a unique piece of digital ‘art’ with the athlete’s signature on it. While pay-for-play remains prohibited, the use of NFTs has raised questions about potential abuse and lack of regulation. Despite some skepticism, other digital assets like trading cards are gaining traction in the NIL landscape, providing fans with tangible products and investment opportunities.
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The summary of the linked article was generated with the assistance of artificial intelligence technology from OpenAI