London football club Arsenal have managed to upset the local regulator, after launching a crypto currency for fans. What was the thing that the critique was competing for and what happened to the value of the currency?
The London football team Arsenal is the first to be criticized for its activity in the field of cryptocurrencies, the British Broadcasting Corporation announced today (Tuesday).
According to the report, the UK Advertising Rules Authority (ASA) has ruled that the group has violated the rules in its publications about its cryptocurrency, $ AFC (initials of Arsenal Fan Token), which was launched about two months ago. The authority said the club “failed to present the risks involved in the investment” and that “advertisements should not appear again in the manner in which the complaints were”.
The authority’s criticism arose following a page that went up on the group’s website in August and encouraged surfers to purchase the group’s cryptocurrency, and a post posted on its Facebook page calling on fans to download the Socios app, the platform through which fans’ currency can be traded. Purchase an intermediate currency called Chiliz first.
The authority defined the publications as “irresponsible” due to the exploitation of consumers’ inexperience, and “misleading” due to the fact that they did not present the risks. She added that future publications must make it clear that this is a crypto currency and that “the value of investments in crypto assets is changing and they are not supervised”.
The group told the BBC in response that “we take our responsibility in advertising to our fans with abysmal seriousness. We have seriously considered our communication with the fans regarding our promotions and have provided information regarding the economic risks”. She added that she intends to order an “independent review” of the authority’s decision.
Arsenal are not the only team to have launched a cryptocurrency for fans in the past year, allowing them to contribute to the team in a way that also gives them control (or at least the illusion of such) in voting for the team’s moves; More than 40 teams have launched fan currencies on the Socios platform, including AC Milan, Arsenal, Roma, Argentina, Atletico Madrid, Aston Villa, Barcelona, Manchester City, Dinamo Zagreb, Juventus, Paris Saint-Germain, Portugal, Inter Milan , Valencia and more. Arsenal’s currency, which was launched about two months ago, started at a market value of $ 12 million and is in almost constant decline, when today its value ranges from only $ 5 million to $ 7 million.