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. 

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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

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