Football has become a great showcase for cryptocurrency companies. Photo: Thomas Serer, Unsplash.
A Premier League, the main league in English football, is investigating the relationship of football clubs, and itself, with cryptocurrency companies. One of the main fears of the league and fan clubs is the connection of teams with assets that have very volatile prices. The information is from The Times newspaper.
This association between soccer teams and cryptoactives, to encourage fans to buy tokens, is also expanding in Brazil. Also because it is a new source of revenue for the clubs and another action of engagement with fans.
There are options such as tokens with the right to sell players, for example those from Santos. Another type is the fan token, actions to engage fans. Then there are the non-fungible tokens (NFTs).
The Brazilian Football Confederation (CBF) itself launched tokens. In addition, Mercado Bitcoin and Binance closed deals to have their names on the jerseys of Corinthians and Santos, respectively. Moss, which has a token for protecting the Amazon, made an agreement with Flamengo. And Crypto.com made an agreement to appear in game materials of the South American Football Confederation (Conmebol). This is just a few examples.
The vision in the UK is that when receiving sponsorship from cryptocurrency companies, teams end up automatically promoting investments in these segments. However, most investors lack knowledge about what cryptoactives are and the risks associated with them, especially in relation to the potential fall in their prices or gains that do not cover the investment. There is a lack of regulation in the sector.
Cryptocurrencies are on football teams in many countries
For this move, NFTs have volatile prices, but it’s easier to understand that they behave like collectibles. The Premier League itself thinks of having a platform for these tokens. But, fan tokens are seen as cryptocurrency clubs.
On November 12, Manchester City, one of the most valuable teams in the world, announced a partnership with unknown 3K Technologies to develop decentralized finance projects. ‘Only that a week later, he canceled the agreement and even the page about the initiative is no longer on the air.
That’s because the Guardian daily published that it didn’t find enough information about the company. And that executives appeared to have no experience in cryptoactives.
Sponsorships from cryptocurrency companies are on football teams in several countries. And in other sports too. Platforms such as socios.com are specialized in tokens for team fans and engagement actions.
Banks also sponsor teams. And like cryptoactive companies, they are criticized in Brazil because they often offer customers products that they themselves do not understand. The issue of lack of financial education here is serious even for conventional products and services.
Another ongoing investigation in England is the betting commission. His focus is the NFTs platform Sorare, which sells a fantasy football game. This one also has agreements with the Premier League, with the German Bundesliga and with the spanish LaLiga.