To understand Web3, a good example is worth a thousand statements. And Sorare is a perfect one.
“Amazing”, “incredible”, “a UFO”… Investors are unanimous. Sorare (the company) is what has been called “the shot of a lifetime”. In just a few years, with a valuation of $4.3 billion, the company has become the highest-rated French unicorn. Even better and even more exceptional in the land of unicorns, Sorare has been generating profits since its inception. A success story that, like all good stories, had a lot of trouble in the beginning. When Nicolas Julia and Adrien Montfort, the two young co-founders, claimed to have created the “world leader in entertainment”, no one believed it: “I don’t understand your thing”, they often heard. Now that Web3 has sparked curiosity, things have clearly changed. And to understand Sorare’s model, you need to understand what the internet of tomorrow might look like.
Collectors, gamblers, gamers and football fans…
It is true that in the beginning we do not understand anything about so rare (the game). for simplicity, so rare combines three models. The ones from Panini, those self-adhesive images that kids loved to collect, from Betclic, the sports betting site, and finally the games from fantasy sports, where challenges are done based on the results of real teams on the field. So many markets that culminate in the top of the most lucrative, with sales of several hundred billion dollars. Short. so rare is a real trap for collectors, an Eden for gamblers, the Elysian fields for football fans.
NFT, blockchain, cryptocurrencies…
But the real secret weapon of so rare isn’t even there. so rare, it is the success of a company that uses the blockchain, cryptocurrencies and NFT… In summary, this gives an online game (developed on the blockchain) where you buy, collect and play virtual cards with the likeness of football players (NFTs), and which enables betting, investing and speculating. the founders of so rare pretend it’s not gambling. But this type of crypto game still belongs to the category called “ play to earn » , to be translated as… « play to win money » . Now Sorare attracts the most prestigious funds and sports stars become shareholders – French team striker Antoine Griezmann, FC Barcelona defender Gerard Pique. More recently, tennis player Serena Williams joined the startup’s board of directors.
So how did Sorare build her business on Web3? We give you 6 reasons.
1. Sorare ‘blocked’ her company
Like any Web3 actor, so rare is based on a blockchain, the technology that has enabled the advent of cryptocurrencies, and more recently that of NFTs. It makes it possible to store information decentrally and securely. Sorare uses Ethereum, one of the most widely used blockchains in the world – and the most trusted, it is said.
2. Sorare has turned its customers into investors
In Web2, users produced content and/or data, but received no revenue from it. Rather, Web3 makes it possible to reward them for their contributions and interest them in the company’s success. in ‘s house so rareusers buy cards, but it is also an investment somewhere in the game for which they will get a profit.
3. Sorare funded the interactions
Web3 essentially works around money exchanges (preferably in crypto), as opposed to the seemingly free nature of the major Web2 platforms (Facebook, Twitter, Google), which are funded through advertising. The financialization of scholarships has the advantage that you are rewarded for your contribution, but you have to pay to participate.
4. Sorare manages to remain a bit mysterious
Web3 apps are a bit complex and mysterious at first. Their sites are often a bit deep, their design a bit primitive. It’s part of marketing. The goal is to create a sense of belonging to a small club of insiders, who have seen the emerging thing for someone else. The famous FOMO (Fear Of Missing Out) is complemented by the pride to…
5. Sorare puts a lot of effort into his communication
Advertising is So web2. You haven’t seen a big Sorare poster campaign on the subway yet. The startup prefers to bet on the most active users (those who have understood the trick, see point 4), who will exchange with each other on the networks, sponsor each other… Some are decked out with titles that distinguish them . At Sorare, these are the “top managers” and the “ambassadors”. In other Web3 communities, the community is created before you even have the product.
6. Sorare has decentralized…but not too much
One of Web3’s ambitions is to give users back some semblance of power. In Sorare’s case, it’s about easy access to game data to create apps and parallel games. But make no mistake, this decentralization is limited. Users have no control over the rules of the original game, the “Mother Game”, nor over the management of the company.
This article appeared in Magazine 31 of L’ADN, SORARE, THE WEB VERSION COLLECTOR, Available here.