Tuesday, July 5

Football token alert: cryptocurrency advertising is in danger in the UK

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The world of blockchain entered the world of football with great force. In 2018, the Paris Saint Germain (PSG) made a pioneering move when the Parisian club partnered with Socios.com and since then they have worked with Fan Tokens, digital assets created on the blockchain Chiliz, as an innovative way to increase their sources of income and, in turn, give a more active role to the fan, which is the premise of this cryptocurrency.

The Arsenal did the same this past summer. A series of activations was established on websites and Facebook that included a video in which the players appeared Ben White, Calum Chambers Y Kieran Tierney admitting that “fans should be aware that they could lose some or all of their invested money.” The fact that this is nothing more than a virtual currency creates doubts about the legality in which they are written and the economic lack of control that they can cause.

Given the prohibitions that were promoted by the government of Spain with the advertising of the bets, the clubs of First Y Second division they saw in these investments a great opportunity. The pioneer in introducing digital currencies was the Valencia CF that replaced Bwin by Chilliz. Through its platform Socios.com, it has its own digital currency on the front of the shirt. The same thing happens with the Deportivo Alavés Y Battles, the Turkish blockchain brand.

The Valencia shirt, with Socios.com advertising

EFE

However, in United Kingdom They are putting restrictions on this new business for the world of soccer. The Advertising Control Body (SO, for its acronym in English) has prohibited some of the activations of the sponsorship agreement between Arsenal FC and Socios.com. This consideration marks a precedent at a time when numerous blockchain companies are signing business partnerships with professional clubs.

The limitations

The ASA rules that the ads “trivialize investing in crypto assets” and “take advantage of inexperienced consumers.” As a result, the two disputed Arsenal advertisements promoting tokens have been withdrawn from the market and banned. All this despite the ad issued a warning that users should “spend only what they can afford” and seek “independent financial advice if they need it.”

The club has defended itself by ensuring that it has issued tokens through Socios.com to encourage fan engagement through different cryptocurrencies to gain experiences, and has ensured that it promoted said tokens responsibly. The ASA has stated that while “the ads did not promote the tokens as an investment or a financial product,” the product was a cryptoasset regardless of how it was promoted and the ads “did not contain any information that the tax on capital gains could be paid on profits from investing in crypto assets. “

The announcement of Socios.com after the agreement with Arsenal.

The announcement of Socios.com after the agreement with Arsenal.

Socios.com

As the communication department of Socios.com explained to THE SPANISH a few months ago, the company did not pay the club to sell its product. The Fan Token of the entity is created and it is commercialized jointly with distribution of the benefits with the conditions that have been determined in the agreement. “The Fan Tokens are a tool for the fans to interact with the club or the organization. The ultimate value of the Fan Token is not in its price, but in its utility, which does not fluctuate but remains unchanged because the Fan Tokens do not expire they are never spent, “they explained about the value of these products.

Possible financial speculation problems were not visible to Socios.com. Ultimately, this market is all about speculation and in recent times there has been a boom in cryptocurrencies that has helped most Fan Tokens gain some traction in the first half of 2021. The Chiliz coin, the one that used to buy club tokens, it is up over 1,100% since the beginning of the year.

At the moment, without advertising

There are thousands of different types of crypto assets, or cryptocurrencies, a fully digital money system made up of “coins” or “tokens“controlled by a decentralized ledger. Generally speaking, there is no intrinsic value underlying most cryptocurrencies. Direct ownership and transactions with crypto assets are mostly unregulated and offer very little consumer protection.

“We take our responsibilities regarding marketing to our fans very seriously. We carefully consider communications to fans regarding our promotions and provide information on financial risks. We will endeavor to comply with the ASA’s guidance regarding future communications in this fast-moving area, however, we will seek an independent review of the ASA’s decision to seek further clarity on the current position of the ASA, “the club explained to the cadena CNN.

In any case, it is a serious warning to surfers for an industry that has just suffered restrictions in the advertising of bookmakers.

[Más información: Las criptomonedas llegan al fútbol: qué es ‘Socios’ y qué dudas genera]

Reference-www.elespanol.com

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