Sports Clubs Pursue Crypto Projects, Regulators Grow Weary
The professional soccer industry has been noted as establishing a series of crypto-based projects with multiple digital asset organizations this year. Some of the largest sports clubs such as Arsenal, Paris Saint Germain, as well as ,Tottenham have signed crypto sponsorships or launched their own native tokens as a new method to raise funds and boost fan engagement with the clubs.
Major Sports Clubs Worldwide Issue Their Own Tokens This Year
Since the official start of the sport’s season began in August, eToro, a fintech and crypto trading company, successfully established partnerships with seven UK Premier League clubs. One of these deals included Leicester City, the 2016 league champion. Similarly, the digital asset exchange in Cyprus, Coindeal, established a sponsorship with Wolverhampton Wanderers. Taking a deeper step into the crypto scene, both Juventus and Paris Saint-Germain, which are among the elite European clubs, took the initiative to develop fan tokens for ICO funding.
Other crypto-sports news recently hitting the media is the launch of the Ronaldinho Soccer Coin, a digital asset created for the famous footballer Ronaldinho who had previously won the World Player of the Year award. In collaboration with a crypto platform based in Malta called World Soccer Coin, the RSC project plans to roll out up to one billion tokens valued at $0.25 each. According to the official website, money raised from this project will be directed towards various initiatives including outreach programs to children in need as well as plans for an upcoming e-sports betting company.
This September, news circled the media concerning Brazil’s Avai club’s plans to collaborate with Sporty Co. in order to issue a token for a $20 million Initial Coin Offering. The blockchain firm had also signed with both UK’s Cardiff City and Newcastle United to help funding initiatives with their own ICOs.
Regulators Zero in on The Sports Industry
The Financial Times reported that regulatory organizations are growing concerned regarding an increase in ICO funding within the Sports sector. Among their main concerns include moral issues regarding investments targeted to the mainstream fan base who are typically uninformed about the emerging technology. However, European Union regulatory organizations expressed definitively that the Sports industry will not be singled out merely for their rising involvement in ICO funding, it will, however, maintain a close eye on widerscale risks associated with ICO investments for these consumers.
On the flip side, several soccer clubs have reportedly steered clear of joining the crypto trend in order to avoid risking their reputation. According to the Financial Times, a high-level executive from a major UK soccer club explained that a major concern involves endorsing ICO funding for a product that has no guarantee of succeeding. He wants to avoid promoting fan-based investments that may result in a major loss of funds of those who trusted the reputation of their favorite club.