Back

Crypto Companies Land Deals With Major Football Clubs, But Endorsing ICOs Is Still Dicey

News
Sat, 10/13/2018 - 09:02
Put your
crypto to
work
  • 1.30

    Interest per week

  • 67.5

    Interest per year

  • 3.60

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • Crashing ICOs may put dent in the cooperation between football and crypto

Cover image via U.Today
Contents

According to Financial Times, cryptocurrencies are gradually penetrating football, but big execs are still reluctant to embrace it. The reason — a myriad of ICO scams.

Must Read
Japanese Football Celebrity Advertises Bitcoin Exchange For $40 Mln in Crypto - READ MORE

A warm welcome from the football industry

In case you didn’t notice, the football industry has been keen on crypto for a long time. A cursory look at Ronaldinho Gaúcho’s tweets shows even the former Barcelona star is jumping on the bandwagon, promoting his own Soccer Coin. This is just one memorable instance when the industries formed a tie-up — crypto has been steadily penetrating football for a long time.

A slew of big-name football clubs (Arsenal, Tottenham) are already embracing ICOs. This is an excellent promotional tactics for fledgling cryptocurrency companies that struggle to reach out to wider audiences.

Back in August, seven English Premier League clubs teamed up with eToro. Another major partnership included a Cyprus-based startup Coindeal and Wolverhampton Wanderers.  

A double-edged sword

Javier Paz from research company Forex Datasource claims that sporting events are usually popular with affluent young people that remain less conservative about their investment decisions, so they are more open for cryptocurrencies than other demographics. Meanwhile, these investors are also not sophisticated enough to know exactly what they are putting in the basket. A recent report states that nearly 70 percent of all ICOs fail to surpass their initial valuation while Satis Group claims that only five percent of ICOs are “promising”.

One of football club execs, whose name remains undisclosed, claims that they are not enthusiastic about endorsing ICOs because they fear the consequences of unsophisticated investors making bad decision. If a certain coin offering fails, the team that promoted it will be responsible.

Must Read
Top 10 ICO Failures of 2017 - READ MORE

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

Recommended articles