• News & Analysis
  • Players
    • Men
    • Women
  • Sport
  • Performance
  • Betting & Gaming

The Perfect Combination Of Cryptocurrency And Football Raises Concerns

33KShares
622.9KViews

Over the last year, the worlds of professional cryptocurrency and football have been intimately entwined. According to critics, it is dangerous that the game has become so inextricably linked to an unregulated, unpredictable business.

UEFA, the governing body of European football, announced a sponsorship arrangement with Socios.com, a cryptocurrency startup that distributes "fan tokens" that can only be purchased via its own blockchain, Chiliz.

A soccer ball and a crypto coin in the football field
A soccer ball and a crypto coin in the football field

As with any cryptocurrency, Socios fan tokens are digital assets with a volatile value. Owners of fan tokens enjoy benefits and can vote on minor club matters on occasion.

Football supporters in Europe expressed shock over UEFA's agreement. It stated in a statement that "this is an illogical action at a time when football desperately needs protection from cryptomercenaries."

COPYRIGHT_LD: Published on https://ligadeportiva.com/cryptocurrency-and-football/ by - on 2022-04-25T08:48:39.902Z

It's part of a trend over the previous two years in which numerous cryptocurrency companies and platforms have invested extensively in professional football.

Seventeen of England's twenty Premier League clubs have entered into at least one business agreement with a cryptocurrency startup, with six clubs, including Arsenal and Manchester City, having previously signed with Socios.

Several teams, including Watford and Southampton, include cryptocurrency as their primary sponsor on their jerseys. Watford also features the Dogecoin emblem as a shirt sleeve sponsor—a "joke" cryptocurrency affiliated with Elon Musk. $.

Socios has partnerships with clubs and leagues around Europe and South America, while numerous other cryptocurrency-related businesses have achieved significant commercial arrangements in Turkey, Italy, and Argentina, among other countries.

Another aspect of football's expanding association with cryptocurrencies is the NFT (nonfungible token) sector, in which clubs and national leagues are building their own digital assets, such as images or videos, for purchase and sale. Numerous prominent sportsmen, notably Brazil's Neymar, have also been promoting the assets aggressively (see tweet below).

Socios has not yet signed with any Bundesliga clubs. TSG Hoffenheim, however, established an NFT relationship with the cryptocurrency Babydoge earlier this month, while the Bundesliga agreed to an NFT partnership with Sorare in late 2021.

Engaging The Wallets Of Fans

The cryptofootball boom has sparked worry amid broader concerns about the threats to financial stability posed by the mostly unregulated market. Last Thursday, a group that makes financial recommendations to the G20 stated that regulations governing the digital asset market should be established immediately.

Martin Calladine, an investigative reporter and author of "The Ugly Game," told DW that he believed football's embrace of cryptocurrency was the result of a "perfect storm," with the pandemic fueling both a dramatic rise in cryptotrading (the global market capitalization of the cryptosector has increased by more than 500 percent in the last two years) and a funding crisis in professional football.

He argues that the primary goal of so-called "fan engagement" services provided by corporations such as Socios is to entice customers to purchase the company's cryptocurrency.

"It is self-evident that the vast majority of these tokens are not held by club supporters," he continues. And even when they do purchase things, it is not to demonstrate their allegiance or sense of commitment. They are purchasing it in order to benefit from it. "

According to Calladine, the fact that anyone may purchase a club's tokens, not just members, suggests that it is not a relevant tool for fan participation. A recent first-time sale of tokens for Premier League club Crystal Palace revealed that more than 90% of buyers had previously acquired tokens from other clubs.

Additionally, he notes that the polls on which token owners can vote are mainly irrelevant and have poor participation rates.

"This cannot be a fan engagement product, unless it is the world's worst fan engagement product," he stated.

Alexandre Dreyfus, CEO of Socio, maintains that the company's tokens are for fan participation, not investment.

"A fan who wishes to vote will never trade, and the vast majority of them will never trade," he previously stated on the Sportspro StreamTime program. "You have fans that purchased for €2 [$2,3] and sold them at €10 [$2,3], but... who can blame them?"

Untrustworthy Businesses

Calladine describes the Socios brand's rapid growth and development as "amazing." Nonetheless, there are questions about the business viability of a large number of new enterprises entering the industry.

Manchester City formed a relationship with 3Key, a firm characterized in press materials as a "DeFi-centric crypto startup," in November. Only two days later, Man City called off the deal after Calladine and others discovered scant proof that the company or those supposed to operate it truly existed.

Simultaneously, Barcelona canceled a partnership with NFT company Ownix after learning that the firm's executives were facing sexual assault and fraud accusations.

Financially Prosperous But Morally Bankrupt

According to critics such as Calladine, there is a real risk that average fans will lose huge sums of money investing in cryptocurrencies due to their affiliation with football. He notes that demand for tokens is particularly strong in football-dominated countries such as Brazil and Turkey, which are also experiencing significant economic difficulties.

He adds that the fan token business exists solely to siphon off people's money and uses football to lend it credibility.

Arsenal's two ad campaigns for fan tokens were recently banned by the UK's advertising regulator for "taking advantage of consumers' inexperience or credulity, trivializing cryptoasset investment, misleading consumers about the risk of investment, and failing to make it clear the "token" was a crypto asset."

Conclusion

Calladine is optimistic that the increased sense of urgency surrounding the issue will result in regulatory action. He does, however, point to English football's longstanding commercial relationship with gambling companies, as well as other contentious issues such as Saudi Arabia's recent takeover of Newcastle United, as examples of how the industry frequently absolves itself of moral responsibility when money is involved.

He explained that it's "a match made in heaven between football's amorality and greed for money and the cryptoworld's gamblers." "You can see how joyfully they dance."

Share: Twitter | Facebook | Linkedin

Recent Articles

  • Sevilla, Valencia & The Chaotic Race For La Liga Survival

    Casino

    Sevilla, Valencia & The Chaotic Race For La Liga Survival

    Both Sevilla and Valencia are heavyweights when it comes to the world of Spanish football. The former has won the UEFA Europa League a record six times, with all their successes coming since 2006.

  • NFL Draft 2023 - Five AFC Teams—Almost An Entire Division Including The Chargers—Must Make Good Picks

    News & Analysis

    NFL Draft 2023 - Five AFC Teams—Almost An Entire Division Including The Chargers—Must Make Good Picks

    With the 2023 NFL Draft just a few weeks away, all 32 teams are eager to add talented players to their rosters. The five afc teams—almost an entire division including the chargers must make good picks.

  • What Are Casino Slots Features?

    Casino

    What Are Casino Slots Features?

    Unlike other gambling games, slots have great in-game features that you can depend on to increase the winnings that you can get and which are always free of wagering requirements and are always instant withdrawable winnings.

  • How To Play Bingo Online & Win Big?

    Casino

    How To Play Bingo Online & Win Big?

    Although it is a game born five centuries ago, Bingo games remains one of the most popular games at non GamStop casinos. This is because playing Bingo is very simple and fun: learning it takes just a few moments, practicing it is never tiring!

  • Soccer Bet Winning Formula - How To Maximize Your Profits

    Guides & Tips

    Soccer Bet Winning Formula - How To Maximize Your Profits

    There is no universal soccer bet winning formula that will guarantee success when betting on soccer, but there are a few things you can do to increase the likelihood that your wagers will turn a profit over the course of the long run.

  • Action23 - Best Online Source For Sports Betting In 2023

    Bookmakers

    Action23 - Best Online Source For Sports Betting In 2023

    Action23's sportsbook and casino services may be used by agents from all around the globe. This website delivers player assistance and wagering services on behalf of the agent clients.

  • How To Bet On Basketball Games Online? Tips For Responsible Betting

    Guides & Tips

    How To Bet On Basketball Games Online? Tips For Responsible Betting

    Basketball is a popular sport that attracts a lot of fans and bettors worldwide. With the advent of the internet, betting on basketball games has become more accessible than ever before. Learning how to bet on basketball games online may be just the thing for you if you are ready to take your love of basketball to the next level and potentially make some money while doing so.

  • Esports Betting Predictions And Analysis - Strategies For Winning Bets

    Guides & Tips

    Esports Betting Predictions And Analysis - Strategies For Winning Bets

    Esports betting is now a significant part of the online betting industry, and it has attracted a large number of players and fans. However, like any other form of betting, esports betting requires a thorough understanding of the games and teams. This is where esports betting predictions and analysis come in.

  • Anybet365 Review - The World’s Favorite Online Sports Betting Company

    Bookmakers

    Anybet365 Review - The World’s Favorite Online Sports Betting Company

    Anybet365 is a sports betting website that has been providing its customers with the best and most authentic odds on all types of sporting events. It is considered one of the biggest and best-betting sites and the world’s favorite online sports betting company. They have millions of customers worldwide and exude trust and confidence among the players.

  • Full Body Workout For Soccer Players - Increasing Max-Speed, Agility, And Endurance

  • Striking Soccer Skills And Techniques That Every Player Should Know In 2023

  • How Data Science And Football Are Related

  • World's Top 5 Extreme Sports

  • Best Fights In UFC History - Top 5 Octagon Brawls