Trace-ing the Unknown: Tareq’s Blueprint for Fan Loyalty

Hi, it’s Marc. ✌️“NFTs are like bricks—just because the hype settles doesn’t mean they won’t build the next great structures.”We sat down with Tareq Nazlawy, Co-founder and CEO at Trace, to explore how sports teams, brands, and leagues can turn cultural capital into measurable value. With a career spanning Adidas, Science Magic Studios, and now Trace, Tarek brings a unique perspective to the intersection of culture, commerce, and technology. Trace turns unknown sports fans into an addressable audience through time-limited digital memorabilia, creating deeper engagement. It enables IPs to gain first-party data, sponsors get targeted exposure, and fans are rewarded with recognition and exclusive experiences.Recently, Trace teamed up with the ATP Tour to launch Momentum, offering fans 15 free, match-specific digital collectibles at the ATP Finals. These data-driven NFTs use match metrics to visualize player momentum, blending storytelling with fan engagement—no crypto jargon, just exclusive digital experiences.Spoiler: Tarek believes only 0.5–1.5% of fans have a direct connection to their favorite teams. The rest? That’s the untapped potential Trace is working to capture.Here’s what we’ve covered:* Playable commerce: Gamified fan credentials like Trace’s “digital passports” boost loyalty, turn rituals into tangible rewards, and provide meaningful data for brands and sponsors.* The love-money balance: Focus on amplifying what fans already love. Tarek explains why commercializing every interaction risks corrupting authentic fan relationships.* Real metrics for sponsorships: With sponsors investing $100B annually in sports, providing measurable ROI through fan-level data is no longer optional.And much more. Ready to move from AI spectator to leader? "The AI Process Playbook for Business" delivers battle-tested frameworks to transform your operations with generative AI. Written for busy executives, this practical guide fast-tracks your journey from basic prompts to high ROI sophisticated AI workflows. Master AI before your competitors do.On fan engagement, Tareq said:“Focus on feeding obsessions, not creating new ones. Fans already love something—your job is to amplify it.”Key Take-Aways* Build Direct Fan Connections: 99% of fans remain anonymous to teams and sponsors. Brands can grow direct engagement to 5–15% by using tools like digital memorabilia. A “fan passport” model recognizes and rewards loyalty through collectible markers of engagement, creating status tiers.* PRO TIP: Offer fans exclusive “fan passports” or collectibles to capture email opt-ins and boost engagement.* Enable Scarcity-Driven Commerce: Limited-edition digital and physical memorabilia can trigger scarcity-driven buying behavior, mirroring hype models in sneaker culture.* PRO TIP: Pair digital assets with exclusive physical merchandise to bridge the digital and physical experience seamlessly.* Lead with Emotional Value: Emotional resonance, not financialization, sustains fandom. Fans cherish moments and recognition more than monetary rewards.* PRO TIP: Design digital assets to evoke nostalgia and shared experience rather than focusing solely on resale value.*  Monetize Passion: Fans' emotional investment leads to higher spending on tickets, merchandise, and subscriptions when nurtured properly.* PRO TIP: Develop integrated ecosystems where fans can spend directly within your platform, eliminating third-party intermediaries (e.g., broadcasters or social media platforms).* Gamify the Fan Experience: Fans need consistent incentives to stay engaged. Time-limited rewards, like Trace’s “event tokens,” drive participation and excitement.* PRO TIP: Launch pre-event gamified campaigns to bring fans back to your platform multiple times a week.Tune in to the podcast to learn more about monetization of fandom without losing authenticity.That’s all for now.Thanks,Marc & Team▶️Top Podcasts:Find our other podcasts here:* Spotify* Apple Podcasts* Youtube⚡️ Work With Us & Reach 50k+ Corporate LeadersOur industry OGs, vast network, research team & 50k+ B2B audience help you:* Co-publish enterprise-grade reports with us, driving traffic and boosting B2B outbound conversion rates.* Execute a multi-channel growth campaign that delivers better results than anything else in Web3's consumer space. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.51insights.xyz/subscribe