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Arsenal rebuked over cryptocurrencies

A number of clubs have got involved with cryptoassets, seeing a new way of making money, but the Advertising Standards Authority has ruled against Arsenal over adverts on 'fan tokens': https://www.theguardian.com/media/2021/dec/22/arsenal-adverts-for-cryptocurrency-fan-tokens-banned

The adverts have been banned for taking advantage of fans' inexperience on cryptocurrencies.   Full ruling here: https://www.asa.org.uk/rulings/arsenal-football-club-plc-a21-1121873-arsenal-football-club-plc.html

The ruling could have big implications in a league which is deepening ties with Socios, with Crystal Palace recently becoming the sixth Premier League club to sign up after Arsenal, Aston Villa, Everton, Leeds and Manchester City, despite fierce opposition from fans’ groups.

Earlier this year in a special investigation, The Athletic revealed how alongside “fan engagement” in the form of polls and competitions, the Socios ecosystem is a hotbed of volatile, risky and unregulated financial speculation, with users of the product on social media far more likely to be engaged in talk of “pumping” and “dumping” than anything to do with football.

Fan tokens are cryptocurrency-based digital assets issued by a Malta-based company called Socios, and have taken the footballing world by storm in recent months. Six Premier League clubs have signed bumper sponsorship deals as well as many European big hitters including Barcelona, Inter Milan and Juventus.

So far this sector has gone almost completely unregulated, with seemingly no government bodies keeping tabs on what these products are and the potential risk to consumers — until yesterday’s ruling.

The tokens are based on the “blockchain” technology underpinning cryptocurrencies like Bitcoin, are marketed to supporters as giving an opportunity for “fan engagement” by facilitating votes on club matters via the Socios app.


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